Private Sewer Lateral: Real Estate Transactions

For Sale SignThe Private Sewer Lateral Ordinance comes into effect on June 1, 2022, and will require all residential, commercial, and industrial buildings to have their private sewer laterals inspected by a Qualified Contractor for any defects and any repairs completed prior to the sale of property to meet the city’s standards as specified in the Inspection Report (PDF).

This ordinance applies to all properties that are more than 15 years old. If the property completed construction in 2007 or later, this inspection is not required. Starting in 2023, any property constructed in 2008 or later will not be required to complete the inspection. The exemption date will be annually updated following this pattern. 

Process Prior to Sale

The seller of the property is responsible to have the inspection completed by a Qualified Contractor. 

If the sewer lateral passes the inspection: 

  1. Email psl.inspections@morganhill.ca.gov the completed Inspection Form and request a Dropbox link to upload the CCTV footage. 
  2. City teammates will review and verify information. 
  3. Once information is verified, the City will issue a Certificate of Compliance within five (5) business days. 

If the inspection does not pass inspection: 

  1. The found damages must be repaired before the property transaction can be completed. 
  2. Upon repair, email an inspection report and CCTV footage that passes the city’s standards psl.inspections@morganhill.ca.gov.
  3. Once verified, the City will issue a Certificate of Compliance in five (5) business days. 

Option to Transfer Responsibility to Repair 

A negotiation between the seller and the buyer may be made. If agreed upon, the seller may transfer the responsibility to repair the private sewer lateral to the buyer. If this option is chosen:

  1. Seller and Buyer complete and notarize a Transfer of Responsibility to Repair Form (PDF)
  2. Buyer brings in Transfer or Responsibility form to City's Utility Billing when ready to turn on service
  3. Buyer then has 180 days to complete the repairs, after utility service has been turned on. 
  4. After the repairs are made a new inspection by a Qualified Contractor must be performed.
  5. Email the new inspection report that passes the city’s standards to psl.inspections@morganhill.ca.gov to request a Dropbox link to upload the CCTV footage.
  6. Once verified, the City will issue a Certificate of Compliance in five (5) business days. 

Please see view a flow chart (PDF) that shows the process step-by-step for private sewer lateral requirements during a resale transaction.