Point-of-Sale Ordinances and What You Need To Know
In the Bay Area real estate market, a Point of Sale (POS) Ordinance is a local law that requires a property owner to meet specific health, safety, or environmental standards or negotiate responsibility with the buyer before a title transfer can be completed.
Unlike many other parts of the country where inspections are just for the buyer’s information, these ordinances can make certain repairs, certifications, or an agreement regarding responsibility mandatory to close the deal.
Common Types of POS Ordinances in the Bay Area
While every city has its own rules, the most common requirements you'll encounter include:
Private Sewer Lateral (PSL) Compliance: Many East Bay cities (Oakland, Berkeley, Alameda, etc.) require the sewer line connecting the house to the city main to be pressure-tested and certified leak-free. Properties serviced by EBMUD (East Bay Municipal Utility District) may be subject to PSL Ordinance.
When is the PSL Ordinance triggered?
PSL Ordinance is typically triggered when buying or selling property, building or remodeling (sometimes in excess of X dollar amount), or the city finds the PSL to be a public nuisance.
Are properties services by EBMUD the only properties with a PSL ordinance?
Who is responsible for PSL compliance?
In many cases (especially in cities with a PSL ordinance), sellers will order a sewer lateral inspection prior to coming on the market as part of their “Disclosure” package. The cost of these inspections typically range between $150 - $400.
If the PSL fails compliance, the responsibility for compliance can be negotiated between buyer and seller.
What is the average cost for repairs / replacement?
The cost can vary quite a bit depending on the complexity of the work. Costs to repair / replace a sewer lateral is usually between $3,000 - $9,000.
However, costs can significantly increase based on the complexity of the work. For example, if the sewer line has a long “run” from the house to the city main or if the city needs to block off the street and hire someone to hold the “stop / slow” sign, that may increase the cost to $15,000+.
If repairs / replacement is required, when do they need to be completed?
Short answer is this is negotiated between buyer and seller. In a buyer’s market, the seller may need to complete the repairs prior to close of escrow. In a competitive seller’s market, a buyer may choose to take on the responsibility of compliance and complete the repairs after close of escrow. The utility / sanitary district may require a deposit be made to ensure the work is actually completed after close of escrow. For EBMUD, the deposit is $4,500.
Sidewalk Repair: In cities like Piedmont or Oakland, the seller may be responsible for repairing any cracks or "trip hazards" in the public sidewalk in front of their property before the sale.
When is the sidewalk ordinance triggered?
At point-of-sale, meaning as part of closing escrow, either buyer or seller is responsible for any required sidewalk repairs.
Who is responsible for sidewalk compliance?
Responsibility for compliance is negotiable between buyer and seller.
What is the average cost for these repairs?
We have typically seen ranges between $2,000 - $7,000, however if say tree roots made the sidewalk uneven and beyond repair, a portion may need to be replaced which could increase costs. While the average cost tends to be reasonable, we have seen instances of repairs costing $25,000+.
Building Emissions Saving Ordinance (BESO): Berkeley’s BESO requirements recently had a massive change as of January 1, 2026. If you are listing your property in Berkeley, you must now get a “Home Energy Score” from a certified assessor PRIOR to listing your home and can no longer defer this to the buyer. Energy upgrades may be required based on the assessment. BESO’s goal is to decrease the use of greenhouse gas emissions, increase resiliency, and improve safety.
Energy and Water Conservation (RECO/WECO): Some cities, like San Francisco and Berkeley, require properties to meet specific energy efficiency standards, such as low-flow toilets, insulated water heaters, or weatherstripping.
Gas Shut-Off Valves: Several municipalities require the installation of a seismic (earthquake) gas shut-off valve, which automatically cuts off gas flow during a major tremor to prevent fires.
Sidewalk Repair: In cities like Piedmont or Oakland, the seller may be responsible for repairing any cracks or "trip hazards" in the public sidewalk in front of their property before the sale. Responsibility for compliance is negotiable between buyer and seller.
