Sewer lateral compliance - feedback

[Fresh Start]

In parts of northern California, some cities have a sewer lateral compliance ordinance which basically states that the sewage pipe connection between the property and the city sewage lines must have no leaks which would allow seepage of surface flow to get in. Anytime there is a new sale, this ordinance comes into effect for compliance and it has to be a part of the sale docs. If there is an issue, this could be a correction anywhere between 4k -20k according to preliminary research. Now I'm wondering how this would or would not impact a refi situation on a conventional URAR? Has anyone dealt with this type of situation?

 

[ucbruin]

In parts of northern California, some cities have a sewer lateral compliance ordinance which basically states that the sewage pipe connection between the property and the city sewage lines must have no leaks which would allow seepage of surface flow to get in. Anytime there is a new sale, this ordinance comes into effect for compliance and it has to be a part of the sale docs. If there is an issue, this could be a correction anywhere between 4k -20k according to preliminary research. Now I'm wondering how this would or would not impact a refi situation on a conventional URAR? Has anyone dealt with this type of situation?

Having grown up in SoCal I thought the same thing about septic systems when I moved to MA....

A sale requires passing septic inspection....
But laws refis don't require a septic inspection....

Is CA the same as MA????
Refi doesn't require inspection????

 

[glenn walker]

Not on a refinance , in SO CA I have never seen one ordered on a sale unless there was evidence of leakage somewhere, personally I am not going down that path, its a Realtor issue not an-appraisal issue, unless the appraiser sees something thats not right, then he/she can report it and let the seller deal with it.

 

[Fresh Start]

Having grown up in SoCal I thought the same thing about septic systems when I moved to MA....

A sale requires passing septic inspection....
But laws refis don't require a septic inspection....

Is CA the same as MA????
Refi doesn't require inspection????

I can't comment on septic as just about my whole market uses public systems. But logically it feels like something that can come back to haunt appraisers and from my understanding, on refi's, one is not needed. Our coastal homes are mostly built on metamorphic zones and we have a ton of active fault lines, something is always moving below and it's not very apparent always but more than not, sewer conveyance lines cracking has a high probability. needless to say, damages can be high and lead to multiple issues in certain areas.

 

[Fresh Start]

Not on a refinance , in SO CA I have never seen one ordered on a sale unless there was evidence of leakage somewhere, personally I am not going down that path, its a Realtor issue not an-appraisal issue, unless the appraiser sees something thats not right, then he/she can report it and let the seller deal with it.

Honestly, I'd rather not go down that path as well, it can be a hot mess. The problem is seepage is not always apparent, I'm a geologist and I have a hard time seeing evidence of it most of the time and typically, when there is evidence on the surface, the problem has existed for a while and severe. It's not like a leach field where the growth give's it away. But my fear is about the seepage that may be happening and there is no evidence on the surface. As this can lead to a hefty remedy, and I'd hate for it to somehow come back and hit the appraiser. On the other hand, my hope is that since it's a sub-surface issue, it cannot be part of the scope of work and something that the appraiser could be hit for.
My approach is to mention the ordinance to not be misleading and write something to the fact that it is not part of the scope of work.