Utility Inspections at Property Sale

Private Sewer Lateral (PSL) & Plumbing Fixture Inspections

The seller of a property is required to complete the utility inspections prior to property sale. These requirements were adopted through the Private Sewer Lateral Ordinance (PDF) and Plumbing Fixture Retrofit Ordinance (PDF). 

What is a Private Sewer Lateral (PSL)?

Laterals, also known as building sanitary sewers, are the sewer pipes that carry wastewater from toilets, sinks and drains and connect from the house or building to the City’s public sewer pipelines. They are typically made of 4” diameter clay or plastic pipe. On private properties the sewer lines from the exterior of the building to the main public sewer line, including the connection to the city main, are the responsibility of the property owner. All private sewer lateral inspections must be conducted by a Qualified Contractor from the provided list: Qualified Contractors (PDF). 

PSL Pipes

Image Courtesy of Easy Bay Municipal Utility District Website

Required Forms

Below are the required forms to receive Certificates of Compliance before property sale. Please follow the process outlined in the Point of Sale Flow Chart (PDF) and use the forms listed below.

Qualified Contractors/Licensed Plumbers

Private Sewer Lateral Inspections - to be done only by Qualified Contractors

All private sewer lateral inspections must be conducted by a Qualified Contractor from the provided list: Qualified Contractors (PDF). 

If you are a plumber and meet the three requirements listed below, please contact PSL.WC@morganhill.ca.gov to be added to the Qualified Contractor's list.

Plumbing Fixture Inspections - to be done by Licensed Plumbers

Toilets, showerheads, and urinals need to be inspected by a Licensed Plumber. 

Private Sewer Lateral Inspection (PSL)
Qualified Contractor Requirements		Plumbing Fixture Inspection
Licensed Plumber Requirements
State Licensed with California (C-36)State Licensed with California (C-36)
Morgan Hill Business LicenseMorgan Hill Business License
NASSCO Certification


The Private Sewer Lateral Ordinance applies to all properties that are more than 15 years old. If the property completed construction in 2010 or later, private sewer lateral inspection is not required. For example, starting in 2026, any property constructed in 2011 or later will not be required to complete the inspection. The exemption date will be annually updated following this pattern. 

The Plumbing Fixture Ordinance applies to all properties that were built on or before January 1, 1994. If the property completed construction in 1994 or later, the Plumbing Fixture inspection is not required. 

For any exemption, the Exemption Form (PDF) must be submitted, with accompanying Supporting Evidence, to the City for review and approval. 

  1. Email PSL.WC@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. 
  4. Buyer submits the Certificate of Compliance when applying to start water services with the Utility Billing Department.

If there is a failed inspection, the seller may transfer the responsibility to repair the private sewer lateral or replace the plumbing fixtures to the buyer. This must be agreed to by both parties. If this option is chosen:

  1. It is the responsibility of the seller to conduct the initial inspection. The seller may transfer the responsibility to repair the private sewer lateral or replace the plumbing fixtures to the buyer.
  2. Seller and Buyer complete and notarize a Transfer of Responsibility Form (PDF).
  3. The Transfer or Responsibility form, the failing Utility Inspection Report, and the CCTV footage are submitted to the Environmental Services Department at PSL.WC@morganhill.ca.gov. 
  4. The City will review the documents provided, and upon approval, provide the signed and Approved Transfer of Responsibility Form. This Approved Transfer of Responsibility Form will be needed for the buyer to begin water services.
  5. Buyer has 180 days to complete the repairs, after utility service has been turned on. 
  6. After repairs are made complete a new inspection and new video footage must be completed by a Qualified Contractor (PDF).
  7. Email the new inspection report and new video footage that passes the city’s standards to PSL.WC@morganhill.ca.gov and request a Dropbox link to upload the CCTV footage.
  8. Once verified, the City will issue a Certificate of Compliance in five (5) business days. 

Need to Make Repairs to the PSL? 

Contact the Building Department to ensure all appropriate permits are pulled:

Financial Assistance Programs

Private Sewer Lateral Grant

  • To learn how to apply for the private sewer lateral projects financial assistance program, please visit our Grant webpage.

Ready to Turn on Water Service? 

Go to the Utility Billing Division and complete the "Start residential water service" form and provide:

  1. Certificates of Compliance for Private Sewer Lateral and Plumbing Fixture; AND/OR
  2. Exemption Form for Utility Inspections at Property Sale; OR
  3. Transfer of Responsibility Form for Utility Inspections at Property Sale, with a copy of the initial Utility Inspection report and a copy of the PSL CCTV video footage.

FAQs