Selling your Malibu home? The fastest way to derail escrow is skipping the OWTS step. If your property uses a septic system, the City treats it as an onsite wastewater treatment system, and there are clear rules at the point of sale. You want a smooth closing and no last‑minute surprises. In this guide, you’ll learn exactly what permit you need, how the inspection works, timing to expect, and when upgrades or extra permits apply. Let’s dive in.
OWTS basics in Malibu
An OWTS is a septic system. In Malibu, these systems are regulated by the Municipal Code and the City’s Local Agency Management Program under the State’s OWTS Policy. The City runs a local operating permit and inspection program to protect coastal water quality.
- You can review the City’s Operating Permit Program to understand forms, fees, and requirements at the time of sale. Visit the City’s program page at Malibu OWTS Operating Permit Program.
- Malibu’s approach aligns with the State Water Board OWTS Policy and the City’s Local Agency Management Program.
Point‑of‑sale rules you must meet
You must have a valid OWTS Operating Permit when you transfer ownership. The City issues that permit after an official inspection report is submitted by a City‑registered OWTS inspector and the fee is paid. Disclosure alone does not satisfy the requirement. Learn what to submit on the City’s Operating Permit Program page.
Who can inspect your system
Only City‑registered practitioners can complete the official inspection and related services. The City maintains practitioner requirements and submittal rules on the Operating Permit Program page.
Documents to gather
Have these ready to keep escrow on track:
- Official OWTS Inspection Report completed by a City‑registered inspector
- Septic pumping ticket(s) and any required photos
- Transfer of Operating Permit application and permit fee
- If repairs or replacement are needed: design report, soils or perc data, contractor license details, and for new systems, Coastal Development Permit documentation You can find forms and instructions on the Operating Permit Program page.
Timeline and escrow tips
Start early. Inspection scheduling typically takes 1 to 2 weeks. City processing times vary based on workload and completeness. If repairs are required, simple fixes can take days to weeks, while a full replacement or advanced system with coastal review can run months. The City encourages early contact through its OWTS program contact page.
Common failure triggers
If an inspection finds any of these, expect repair or replacement orders:
- Surfacing effluent or sewage backing up into the home
- Structural failure of tanks or piping
- Evidence of excessive pumping per City criteria
- Insufficient capacity for added bedrooms or ADUs Failure findings are addressed through the City’s program requirements outlined on the Operating Permit Program page.
When upgrades or sewer apply
Some sites need an Advanced OWTS to meet performance standards. This can occur with commercial or multi‑family properties, higher strength flows, or where a conventional system cannot meet site conditions. Malibu’s code also addresses special situations near impaired waters identified under the State’s Tier 3 framework, which can require supplemental treatment and monitoring. See the State OWTS Policy for Tier guidance.
If your property is within 200 feet of an available sanitary sewer, the City will not issue an OWTS construction permit, and connection may be required at failure or major repair. This is defined in the Malibu Municipal Code.
Coastal permit for new systems
If you are installing a new system or a major replacement, Malibu requires a Coastal Development Permit in addition to OWTS plan review and construction permits. Coastal review is discretionary and can extend timelines. Review steps on the City’s Process for Installing a New System.
Budget basics
Costs vary widely. Expect modest fees for inspections or minor pumping and significantly higher budgets for repairs or advanced treatment systems, site work, and coastal permitting. The City posts fee schedules and forms, and registered practitioners can provide estimates. Start with the Operating Permit Program and contact Environmental Health with questions.
How to get started
Follow this simple sequence to protect your timeline:
- Call Malibu Environmental Health and Wastewater Management for current forms and guidance. Find contact details on the City’s OWTS page.
- Hire a City‑registered OWTS inspector and schedule the official inspection.
- Gather any past permits, records, and pumping receipts.
- Submit the Transfer of Operating Permit package and fee to the City.
- If the report flags repairs or replacement, coordinate design, permits, and coastal review as needed. See the Process for Installing a New System for CDP steps.
A clean, complete submittal and proactive scheduling help you avoid escrow delays. If you want a well‑managed sale with a white‑glove experience, connect with The Kohl Team to plan your listing timeline and next steps.
FAQs
Do Malibu home sellers need an OWTS permit at closing?
- Yes. The City requires an OWTS Operating Permit at the time of sale, which is issued after an official inspection report by a City‑registered inspector and payment of the fee. See the City’s Operating Permit Program.
Can sellers disclose issues instead of fixing a failing OWTS?
- No. Disclosure does not replace the City’s permit and inspection requirements. If the system fails, repairs or upgrades are required under the City program before transfer. Details are in the Operating Permit Program.
Who is allowed to inspect a Malibu septic system?
- Only City‑registered OWTS practitioners can complete the official inspection that supports the operating permit. Practitioner requirements are outlined on the Operating Permit Program page.
What if a sewer line is nearby?
- If an approved sewer is within 200 feet, the City will not issue an OWTS construction permit, and connection may be required at failure or major repair. See the Malibu Municipal Code.
When is an Advanced OWTS required in Malibu?
- Properties with higher strength or volume flows, or sites where a conventional system cannot meet conditions, may need advanced treatment. Extra treatment and monitoring may apply near impaired waters under the State OWTS Policy.