Recently, we helped a great young First Time Home Buying Family secure the perfect little property in Morgan Hill, Ca. Morgan Hill is a quaint rural south county community that boasts world renown wineries, restaurants, concerts, etc. so it is no wonder this young family felt inclined to raise a family there. However, one unique feature of any transaction in Morgan Hill is the requirement of a sewer lateral inspection prior to the transfer of title. This law began to be enforced on June 1, 2022, so many transactions have been affected by this new requirement.
So, what is Sewer Lateral? 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.
Morgan Hill, unlike other cities in Santa Clara County require a full inspection of the sewer lines that are attached to the cities drainage system prior to any transfer of title. The reasoning is simple, Wastewater (sewage) from homes and businesses in Morgan Hill flows in private pipes (laterals) to neighborhood collection pipes and is ultimately carried into a large sewer trunk line down to the wastewater treatment facility in Gilroy. While this trunk line is designed to carry all the wastewater generated by homes and businesses, it is not large enough to carry stormwater too. Unfortunately, as the wastewater collection system has aged these private sewer laterals are subject to the cracking, root-fill, displacement, and failures that allow stormwater to rush in and overflow the City’s infrastructure during large storm events. This stormwater intrusion has resulted in sewage overflows in the trunk line that can pollute local creeks and rivers and could ultimately compromise drinking water quality.
You might be asking yourself, what if the inspection fails and what could cause a lateral line to be compromised? Most commonly it results from tree root intrusions or deteriorating pipe sections. The extent of the damage will vary in costs. Inspection of private sewer laterals may cost from $300-$800 depending on the Qualified Contractor chosen. If the private sewer lateral lines cannot be accessed it may be necessary to install a new cleanout pine, which can range from $2,000 to $4,000 plus the inspection cost. Fixing serious structural or operation defects can vary widely in cost, with a full lateral replacement including new clean-out costing on average between $10,000 - $15,000.
Also, remember, your sewer lateral property line does not end at the sidewalk. Many times, depending on the city, your responsibility lies up to the city sewer line. *See illustration below
Remember, if you have a transaction, make sure you work with a trusted Real estate professional, so you are not suddenly burdened with a delayed closing or unexpected cost.