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The Oakland Sewer Mess for Home Sellers

By
Real Estate Agent with McGuire Real Estate

The Oakland Sewer Mess for Home SellersNothing is easy in Oakland.  And the recently enacted Oakland Sewer Ordinance is no exception.  Actually, it is not Oakland’s doing.  It stems from an EPA suit where each city is required to develop a plan for repairing and operating all sewer pipes in their city.

The Oakland Sewer Ordinance, which is administered by East Bay MUD, went into effect January 17, 2012.  It requires that any person selling an Oakland property or conducting a remodeling project of over $100,000 enacted after January 17 must obtain a “Compliance Certificate” from EBMUD.  (Presently, this is a cumbersome process best left to the plumber doing the work.) 

Since most homes in Oakland have old clay sewer lines, that means the sewer line (also called the sewer lateral) must be replaced.  Similar ordinances have already gone into effect in Berkeley, Alameda, Albany, El Cerrito and Piedmont.  Unfortunately, in Oakland’s case, it requires the sewer be replaced to the middle of the street, which costs more than the other communities.  Most sewer replacements in Oakland are running upwards of $5000. 

In the case of selling your Oakland house, it usually means either replacing the sewer ... or getting the Buyer to agree to do it within six months and ponying up a $4500 deposit.  That’s a big chunk of change for most Oakland Buyers to handle on top of a downpayment.  So it’s likely most Sellers will be doing their sewers when they put the house on the East Bay market. 

Despite that, the silver lining in all of this is we will have cleaner ground water – due to less leaching of sewer water into the soil.  So remember that when you’re plunking down your $5000. 

For more information on Oakland sewer compliance or home sales in your Oakland neighborhood, give me a call at 510-847-2409 or visit my website at www.BarbaraReynolds.com.

Barbara Reynolds, your East Bay real estate specialist

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EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD
LAROSA REALTY - Orlando, FL
Short Sales, Foreclosure & Bank Owned Real Estate

Barbara very interesting and helpful information for all. Thank you for keeping us informed!

Apr 03, 2012 04:28 AM
Anonymous
Tim Floyd

Barbara, this is obviously a hot topic right now.  May I suggest renovation financing for those transactions?  The bond may still need to be posted, but at least the buyer can finance the sewer lateral into their mortgage payments and complete the work after the close of escrow!  Renovation loans are available for conventional or FHA buyers - investors welcome.

Pick the right lender and these loans will close on-time, everytime.  To learn more, click on the link  www.wfhm/timothy-floyd 

May 04, 2012 05:04 AM
#2
Anonymous
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Jul 28, 2012 03:51 PM
#3
Mike Young
203kOnLine.com, covering the USA - Stallings, NC
FHA 203k Consultant 916-758-1809

Barbara, very informative post, and I see Tim has already noted that this repair, like others, can be rolled into a FULL or Standard FHA 203k or HomeStyle loan program when they the lateral is found to be in need of repair so your sale can close on time and the work can be done after the close. Nice post, M

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