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Alameda county does something similar for health reasons. All home sales require pressure testing the sewer lateral. With replacement required if it fails before the deed can transfer or a loan is funded.


Does the buyer or seller pay for the repairs?


In practice the seller. Because they can’t sell to anyone without fixing it. But it’s negotiable.


But the buyer gets the benefit of the repair. I'd probably push for at least a 50:50 split (or, have the line inspected before listing the house for sale, and if it needs repair add that to the asking price).


The seller gets the benefit if they can’t sell it to anyone else




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