Selling a Home in Oakland? Here's How the Sewer Lateral Rule Works

Every sale of an Oakland property with a sewer lateral needs one of two things at closing: an EBMUD Compliance Certificate, or a Time Extension Certificate backed by a $4,500 deposit. If you start early, you'll have more options and fewer surprises in escrow.

What the rule says

Under EBMUD's Regional Private Sewer Lateral Ordinance, a Compliance Certificate is required to close escrow on a property in Oakland. The rule has covered Oakland escrows opened on or after January 16, 2012. It covers homes, apartment buildings, and commercial property, including bank-owned homes and short sales.

The ordinance doesn't make the sale itself illegal if you miss it. But once title transfers without a certificate or a valid time extension, the property is out of compliance, and the new owner faces EBMUD enforcement. EBMUD says it reviews listings of sold properties to find these.

Who pays: buyer or seller?

EBMUD doesn't decide. The buyer and seller work out who will get the certificate. Your options include:

Seller gets the certificate before closing. This is the cleanest path. You give the buyer a copy before title transfers.
Seller or buyer gets a Time Extension Certificate. The work happens after closing, within 180 days of the TEC issue date.
Price or credit negotiation. The parties agree on a credit and one of them handles the work, using either path above.

Whatever you agree on, put it in the purchase contract. Your agent can tell you how this is usually handled in a deal like yours.

Start before you list

A camera inspection and a few bids early on tell you whether you're looking at a simple pass, a repair, or a full replacement. That helps you price the house and answer buyer questions. These things can add time:

Getting written bids (EBMUD recommends at least three)
The Oakland Sewer Lateral permit, if work is needed
Booking an EBMUD inspection window and getting the setup ready on time
A failed test, which means more work and a new appointment, plus a $140 rescheduling fee
Downspouts or drains connected to the sewer, which must be fixed before you can pass

The step-by-step process is in our Compliance Certificate guide.

If you can't finish before closing: the Time Extension Certificate

If you can't get the certificate before title transfer, either party (or their representative) can apply for a Time Extension Certificate (TEC). Here's how it works, according to EBMUD:

Select the property on the EBMUD PSL site, request a TEC, and pay the $142 fee.
Fill out and sign the TEC before title transfer. It must name who gets the refund and give their mailing address.
At title transfer, mail the signed TEC and a $4,500 check payable to EBMUD-PSL, with the parcel number on the check, to: EBMUD-PSL Remittance Center, PO Box 24055, Oakland, CA 94623.
Get the Compliance Certificate within 180 days of the TEC issue date.

Things to know:

The TEC is only valid if the $4,500 deposit is submitted at title transfer. EBMUD says you still need the deposit even if you plan to replace the lateral the day after closing.
After title transfers, the new owner alone is responsible for getting the certificate, no matter what the contract says about who pays.
The refund goes to the person named on the TEC, usually 4 to 6 weeks after the certificate is issued, and only once any inspection-related fees are paid. If the deposit was a check, EBMUD won't refund it during the two weeks it takes to clear.
If the 180 days run out, the $4,500 may be forfeited, and the new owner faces EBMUD enforcement.

Refund questions: psl@ebmud.com or (866) 403-2683 (Monday to Friday, 8 a.m. to 4:30 p.m.).

Transfers that don't trigger the rule

EBMUD lists these title transfers as not subject to the ordinance:

By a fiduciary administering a decedent's estate or trust
Between existing co-owners
By a trustor to fund or defund a living trust
By an executor to fund a testamentary trust
To a spouse or registered domestic partner
To a blood relative of the person transferring (lineal consanguinity)
As a result of divorce or legal separation
To a financial institution through foreclosure or a similar process
Certain transfers between a business entity and an individual or corporation, such as an LLC

You may need to show EBMUD documents to get a short-term exemption certificate for one of these. If a bank later sells a foreclosed home, the rule applies again to that sale.

Condos and townhouses

Check your HOA's CC&Rs and the Statement of Responsibility (SOR) the HOA filed with EBMUD. If the HOA is responsible for all the laterals, you give the title company a copy of the EBMUD-reviewed SOR. You don't need a certificate yourself. If you are responsible for all or part of your lateral, you need a Compliance Certificate or a TEC like any other seller. Buyers can ask the HOA for the SOR and email psl@ebmud.com to confirm EBMUD received it.

Already have a certificate?

Certificates stay with the property. Look up your parcel on EBMUD's property search to see the expiration date. A certificate from a full replacement is good for 20 years. One from a repair or an as-is pass is good for 7. If yours is still valid at closing, you may not need to do anything more.

For agents

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