Water can make or break a property. In Santa Cruz County, where private wells remain a common water source for rural and semi-rural homes, the condition of that well is just as important as the roof or foundation. Starting September 1, 2025, Santa Cruz County is rolling out a new requirement that puts wells front and center in real estate transactions.
If you’re buying or selling, this isn’t just fine print — it’s a step that could impact timelines, negotiations, and peace of mind. Understanding what’s changing and preparing early will help you stay ahead of the process.
Inside this Article:
- What’s the New Well Point of Sale Rule?
- Who Does This Affect?
- What Exactly Gets Tested?
- Do Sellers Have to Fix Problems Right Away?
- How This Impacts Real Estate Transactions
- The Paperwork You’ll Need
- Learn More: Upcoming County Class
- Why This Matters for Santa Cruz Buyers and Sellers
- Practical Tips for Navigating the New Process
- The Bigger Picture: Protecting Water in Santa Cruz
What’s the New Well Point of Sale Rule?
The County of Santa Cruz Environmental Health Department has adopted a Well Point of Sale Inspection ordinance. In plain terms, if a property is served by an individual water system (IWS) — more commonly called a domestic well — testing will now be required before the property can change hands.
Until now, well inspections weren’t mandated in Santa Cruz County real estate transactions. Some buyers chose to have water tested voluntarily, but many deals closed without clear data about water quality or well performance. This ordinance formalizes the process, ensuring that every transaction involving a well includes an objective, standardized assessment.
Who Does This Affect?
This ordinance applies to anyone involved in the sale of a property that uses a private well.
- Sellers – You are responsible for arranging the required testing before closing escrow. Just like a septic inspection or termite report, this becomes part of the seller’s checklist.
- Buyers – You’ll receive a clear report on the well’s condition, giving you the transparency needed to make informed decisions.
- Realtors – Agents will need to incorporate this step into their transaction timelines and educate clients about what to expect.
If the property is on a municipal or community water system, there’s nothing new to worry about. This rule only applies to private wells.
What Exactly Gets Tested?
Two main elements are evaluated:
1. Water Quality - Is the water safe to drink? The testing checks for:
- Bacteria such as coliform and E. coli.
- Nitrates and other chemical contaminants.
- Additional substances, depending on county standards.
These results tell buyers whether the well water meets health guidelines.
2. Water Yield - How much water is the well producing? This isn’t about purity — it’s about supply. A yield test measures gallons per minute to confirm whether the system provides enough flow for typical household use.
Together, these two assessments function like a health checkup for the property’s water system. Buyers gain peace of mind, and sellers avoid future disputes by disclosing the system’s true condition.
Do Sellers Have to Fix Problems Right Away?
Here’s the relief: No upgrades, treatments, or repairs are required at the time of sale.
If the test results show bacteria, nitrates, or low yield, the seller isn’t automatically on the hook for fixing it before closing. Instead, the key obligation is disclosure: the results must be shared with both the buyer and the County.
- For sellers, this means transparency without mandatory costs.
- For buyers, it means entering the deal with eyes open. You may choose to negotiate repairs, factor treatment costs into your budget, or move forward as-is.
This flexibility is designed to keep transactions moving while still improving awareness of water conditions countywide.
How This Impacts Real Estate Transactions
Anytime a new requirement is added, buyers, sellers, and agents wonder: will this slow down deals? The short answer is: only if you’re unprepared.
For Sellers - Testing takes time. Scheduling it early in the listing process ensures results are available before escrow deadlines. Waiting until the last minute risks delays.
For Buyers - Well reports add another valuable layer to due diligence. If issues are found, you’ll have documented leverage for negotiations or future planning. For example, a low-yield well might justify a lower price or encourage you to budget for a storage tank or pump upgrade.
For Realtors - Agents who can confidently walk clients through the ordinance, required forms, and timelines will stand out. Helping sellers schedule testing proactively and explaining results to buyers will become part of providing full-service representation.
Bottom line: This doesn’t need to derail transactions. It simply ensures that water systems — one of the most essential parts of a property — aren’t overlooked.
The Paperwork You’ll Need
Santa Cruz County has already provided tools to make compliance easier. Two documents now matter most in well-related transactions:
1. Water Source Evaluation & Transfer of Property Form – This form confirms the inspection results and becomes part of the property’s disclosure package.
2. Time of Sale Flow Testing & Water Quality Sampling FAQ – This guide explains how the tests are conducted, what’s measured, and what buyers and sellers should expect.
Both are available on the Santa Cruz County Association of Realtors Local Disclosures page. Reviewing them in advance can help both parties avoid confusion during escrow.
Learn More: Upcoming County Class
The County understands this ordinance is new territory for everyone involved, which is why they’ve scheduled an educational resource.
- What: Santa Cruz County Water Resources Class
- When: Friday, September 26, 2025, at 9:30 AM
- Where: Online via Zoom
- Who: Hosted by Sierra Ryan, Santa Cruz County Water Resources Manager
This session will walk through the requirements in detail and provide a chance for direct Q&A. If you’re a buyer, seller, or agent planning a well-involved transaction in late 2025, attending this class is highly recommended. Register here.
Why This Matters for Santa Cruz Buyers and Sellers
Santa Cruz has always had a unique relationship with its natural resources. Many homes outside urban centers rely on wells, and for years, well performance was one of those “buyer beware” items. Some buyers tested; many didn’t.
This ordinance isn’t about creating hurdles — it’s about creating confidence. By standardizing testing, both buyers and sellers benefit:
- Buyers can make informed decisions and avoid costly surprises.
- Sellers demonstrate good faith, reducing the risk of disputes after closing.
- The community gains better data about local groundwater quality, helping county officials manage resources responsibly.
Think of it less as bureaucracy and more as protection for one of the most important parts of your property.
Practical Tips for Navigating the New Process
- 1. Sellers: Schedule testing early. Don’t wait until escrow — line up inspections before listing, just like you would with septic or pest reports.
- 2. Buyers: Read the full report. Don’t just glance at the summary. If you see issues like nitrates or low yield, ask your Realtor what they mean for long-term living.
- 3. Realtors: Educate clients. Build this into your transaction timeline and disclosure packet from day one.
- 4. Budget time for delays. Lab processing or scheduling bottlenecks could extend timelines if you wait until the last minute.
- 5. Use professionals. Only licensed testers can perform and file the required inspections.
Beyond individual transactions, this ordinance contributes to Santa Cruz’s broader water stewardship goals. Wells tap into groundwater, a shared resource that sustains both homes and ecosystems.
- Identifying contamination early helps prevent public health risks.
- Tracking well yields creates data to guide regional planning.
- Transparency ensures property owners are realistic about water limitations, especially in drought-prone California.
In this sense, the Well Point of Sale Inspection isn’t just about a single home — it’s about safeguarding water for the entire community.
Which Companies offer these services?
- ASH, FRED & SON-LYNCH PUMP (831) 637-8534
- CAPITOLA PUMP (831) 475-5364
- CHAPPELL PUMP CO (408) 842-3113 (Watsonville Only)
- DOS PALOS WELL DRILLING (209) 587-0935
- DOUGHERTY PUMP& DRILLING (831) 663-3562
- EATON DRILLING CO (530) 662-6795
- HALSTEAD PUMP (831) 688-4731 halsteadpump@gmail.com
- K H PUMPS (831) 761-2180
- MAGGIORA BROS. DRILLING, INC (831) 724-1338
- SUPERIOR PUMP CO (831) 688-7867
- TOM'S WELL SERVICE (831) 423-4107
Once the tests are completed, what do I need to do? To ensure compliance, the completed disclosure form “Water Source Evaluation upon Transfer of Property” and laboratory report must be provided to the property buyer, and submitted to the Santa Cruz County Environmental Health Division via email at ENVPointofsale@santacruzcountyca.gov.
Final Thoughts
Starting September 1, 2025, water testing for wells becomes a standard step in Santa Cruz County property transactions. By requiring both water quality and yield testing, the ordinance brings transparency to one of the most vital aspects of rural living.
Handled proactively, it doesn’t have to slow down or complicate sales. Instead, it gives buyers confidence, gives sellers clarity, and helps Realtors provide better guidance.
The bottom line:
- Sellers should schedule tests early.
- Buyers should review results carefully.
- Everyone should use the official forms and resources.
If you’re planning to buy or sell a home with a private well in Santa Cruz County, take time now to learn the rules, line up trusted professionals, and lean on your Realtor for support.
For more resources, visit the Santa Cruz County Environmental Health Department’s official site.
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Paul Burrowes, CRS, CCEC, SFR, NHCP, LHC, REALTOR® Licensed REALTOR® with over 15 years of experience and expertise. Commits to being on time and transparent. Acts as your consultant to ensure you make the best decisions to fit your transaction at every step in the process. Negotiates towards a low-stress, win-win outcome. Handles all the details for you, ensuring the hundreds of steps in your real estate transaction go smoothly. Proudly serving Silicon Valley, Santa Cruz, Monterey, and Santa Clara Counties! | DRE# 01955563 | (831) 295-5130 | paul@burrowes.com.
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