Sellers and Buyers, and their real estate agents, are usually aware of state-wide requirements that affect the sale of real property. However, there are lesser known local requirements that can prove problematic, and even delay the close of escrow or result in future liability.

In drought-ridden areas in California, it is not unusual to find local requirements pertaining to water safety.  For example, the Ross Valley Sanitary District, which includes multiple neighborhoods and municipalities in Marin County, requires that upon the listing of any piece of real property for sale, the Seller shall have the sewer lateral of the property tested.  “The responsibility for repair of a lateral that fails testing shall be mutually agreed upon by the property Buyer and Seller.”  Once the lateral has been tested, district staff must still evaluate the inspection report to confirm adequacy. So the parties should plan upfront for this test to occur in sufficient time, and agree upon who will pay the cost of any necessary repairs, so as not to delay the closing of escrow.

In the areas served by The Moraga-Orinda Fire District, Fire Code Section 325.9.10 requires that before the sale or transfer of property, the Seller must provide the Buyer with documentation from the Fire Chief stating that the property is currently in compliance with the exterior hazard abatement section of the fire code.  The Fire District inspects properties throughout the service area on an annual basis, so if the Seller fails to obtain this certification, then it is quite likely that the new owner, the Buyer, will receive a Notice of Violation from the Fire District, which the Fire District will be able to enforce against the new owner.  Failure to provide the certification will then result in liability to the Seller, and potentially the real estate agents involved, for the cost of the subsequent compliance. I know this because I represented Buyers in just this situation, who were quite upset to receive a Notice of Violation from the Fire District, within weeks of purchasing their new home, requiring approximately 40 very large trees to be removed!  The Sellers, and real estate agents, had to step up and pay for the tree removal.

As always, it is very important that you consult an attorney for advice on your specific legal situation.