Selling a Home in Truckee? Your Sewer Lateral Must Be Tested Before Close of Escrow
If you're selling a home in the Truckee area, there's a pre-closing requirement that catches sellers off guard more often than it should: a mandatory sewer lateral pressure test, required by the Truckee Sanitary District before escrow can close.
This isn't a buyer's due diligence item or a negotiable inspection — it's a legal obligation written directly into the TSD's governing code.
What the Ordinance Requires
Under Section 10.02(f) of TSD Code Ordinance 1-2021, all private sanitary sewer facilities must be tested when any of several triggering conditions occur — including, specifically, "prior to the close of escrow upon a sale of the house, building or property served." Section 10.02(g) extends the same requirement to any transfer of ownership or interest in the parcel.
Section 10.04 sets the deadline plainly: testing must be completed "prior to the close of escrow upon the sale of the residence, building, or property." There is no grace period after close, and no ability to transfer the obligation to a buyer as a post-closing condition.
The test itself — governed by Section 10.03 — must be witnessed by a TSD inspector or representative. The owner bears the cost. If the lateral fails, corrective work and retesting must be completed within 30 days of the original test, and all repairs must be approved by the District before escrow can close.
Is There Any Way to Avoid It?
Section 10.05 gives TSD's General Manager discretion to waive the requirement if the sewer facility "has been installed and/or tested within a prior 8-year period and there is good reason to believe that such testing is not necessary." This is a discretionary waiver — not an automatic exemption — and must be sought from the District directly.
The Winter Complication
Truckee's climate adds a layer of complexity. Section 10.04 acknowledges that testing between October 15 and April 15 may be impractical due to weather conditions. In those situations, the General Manager may defer the requirement, but only upon the posting of a cash deposit or performance bond with the District — or, if the property is being sold, by holding equivalent funds in escrow. In the latter case, testing must still be completed by the following June 15, and escrow funds will not be released without written notification from the District to the title company.
This means winter listings in Truckee require early coordination with TSD to avoid closing delays or unexpected escrow holdbacks.
What Sellers Should Do
Schedule the sewer lateral test early — ideally before listing, or immediately upon opening escrow. TSD's Engineering Department handles inspection scheduling and can be reached at (530) 587-3804. If the lateral hasn't been tested in the past several years, budget time for potential repairs.
For buyers, confirm with your agent and escrow officer that TSD sign-off has been obtained before releasing any contingencies tied to the physical condition of the property.
This article is for general informational purposes only and does not constitute legal advice. If you have questions about a specific transaction in the Truckee area, contact Apricity Law at apricitylegal.com.