Home inspections in Palo Alto

In much of the country, the buyer orders an inspection after the offer is accepted. Palo Alto often runs the other way. Many listing agents post a package of inspection reports before the offer date so buyers can bid with short or no contingencies. That speeds things up, but it shifts work onto buyers. You need to read reports someone else ordered, decide which gaps matter and line up your own experts in days rather than weeks.

This page explains the main California inspections, what each report covers and what the City of Palo Alto does and does not require. It is general information, not legal advice. Hire licensed professionals for your own purchase and check the terms of your contract with your agent or an attorney. For the full purchase sequence, see our guide to buying a home.

Who inspects what in California

California treats different inspections differently. Knowing who is licensed for what helps you judge a report.

State law describes a home inspection as a noninvasive look at the readily accessible parts of the house: the roof, foundation, plumbing, heating, electrical and other major systems. It also bars a home inspector, or the inspector's company, from doing repairs on a house they inspected. That rule exists to keep the report independent. You can look up any contractor's license on the CSLB website.

The general home inspection

A general inspection gives you a broad picture in one report. Expect the inspector to walk the roof if it is safe, go into the crawl space and attic where they exist, run the plumbing fixtures, test outlets, look at the electrical panel and check heating and water heating equipment. A good report has photos and flags items for a specialist.

What the general inspection does not do matters just as much. It does not open walls, test for mold or asbestos, run a sewer camera, judge soil stability or price repairs. If the inspector writes "recommend evaluation by a licensed contractor," treat that as a gap to fill, not a formality.

Seller-ordered reports

When a seller provides a pre-inspection package, read it before you tour a second time. Note the date of each report, what the inspector could not reach and any items marked for follow-up. Ask the listing agent whether the seller has fixed anything since. If a key report is old or missing, such as no roof report on a 25-year-old roof, budget for your own.

Termite reports: Section 1 and Section 2

Termite reports in California follow a standard format overseen by the Structural Pest Control Board. The inspector looks for wood-destroying pests and organisms, which includes drywood and subterranean termites, beetles and fungus damage, often called dry rot. Findings fall into two groups.

• Section 1. Active infestation or existing damage, such as live termites or rotted framing.
• Section 2. Conditions likely to lead to infestation or damage if left alone, such as a leaking shower pan, wood in contact with soil or poor ventilation.

Reports may also list further inspection items for areas the inspector could not reach. The report includes cost estimates from the inspecting company for its own recommended work. Who pays for Section 1 and Section 2 work is a matter of contract, not law. Lenders may also have requirements. Read the pest control terms in your purchase agreement and do not assume the seller will cover everything.

Older Palo Alto houses with raised wood floors, such as many in Professorville or Crescent Park, often show more findings than slab houses simply because there is more wood near the ground. That is normal, but large Section 1 estimates deserve a second opinion.

Sewer laterals and what Palo Alto requires

A sewer lateral is the private pipe that carries wastewater from the house to the city main in the street. Old clay or cast iron laterals crack, sag or fill with tree roots. Replacing one can mean digging up a driveway or front yard, so this is one of the most valuable inspections for an older house.

Some Peninsula cities require a lateral inspection or replacement when a property is sold. Palo Alto does not. The Almanac reported in March 2026 that Palo Alto, Mountain View and Menlo Park have no sale-triggered lateral inspection, while San Mateo and Redwood City have point-of-sale rules. The same report described the split in Palo Alto:

• The property owner must repair or replace the upper lateral, from the house to the property line.
• The city handles the lower section in the public right of way if it fails.
• Owners must keep sewer cleanouts accessible.

Because no rule forces a scope at sale, ask for the video if the seller ordered one. If not, a plumber's camera inspection costs far less than a surprise replacement. Wastewater service comes from City of Palo Alto Utilities. Our utilities guide has the contacts.

State rules that apply at sale

Palo Alto has no city point-of-sale inspection program that we could find. A handful of California rules still apply to most house sales.

1. Water heater bracing. State law requires water heaters to be braced, anchored or strapped against earthquake motion. Sellers commonly certify this in writing.
2. Smoke alarms and carbon monoxide detectors. Sellers of single-family homes must confirm the house has working smoke alarms and carbon monoxide detectors that meet state rules.
3. Older plumbing fixtures. Sellers of single-family homes built before 1994 must disclose whether the house has noncompliant, higher-flow plumbing fixtures.
4. Lead paint. For homes built before 1978, federal law requires a lead disclosure and gives buyers 10 days to arrange a lead inspection unless they agree to a different period or waive it.
5. Earthquake and hazard disclosures. Sellers of older houses provide the state's earthquake safety booklet and a Natural Hazard Disclosure. Our flood zones guide explains the hazard maps.

Specialist inspections worth considering

Which specialists you call depends on the house. A few patterns are common in Palo Alto.

• Roof. Ask a roofer to estimate remaining life, especially on flat or low-slope roofs.
• Foundation. Raised-foundation houses built before 1980 may lack anchor bolts or cripple wall bracing. Our earthquake retrofit guide explains the fixes and grants.
• Radiant heat. Eichlers and some other mid-century homes have heating pipes in the slab. A specialist can pressure test the loops. Our Eichler buying guide covers the rest.
• Chimney. Older brick chimneys can crack in earthquakes. A chimney sweep or mason can check the flue and the brick.
• Trees. Large oaks and redwoods are lovely and expensive. Palo Alto protects certain trees, so an arborist's view helps before you plan any work. See our tree permits guide.
• Drainage and moisture. Look for stains, efflorescence on foundations and grading that slopes toward the house.
• Electrical capacity. If you plan heat pumps or an EV charger, ask an electrician whether the panel and service can handle them.

Permits and past work

An inspector reports what they see, not whether it was permitted. Compare the house to its permit history. A converted garage, an added bathroom or a new electrical panel should show up in city records. Our guide to property records explains how to use the city's Permit View tool and the Parcel Report. Unpermitted work can affect insurance, financing and your own remodel later, as our building permits guide explains. If the house is on the historic inventory, some repairs also need city review. See historic home rules.

Using the reports

Inspection findings rarely kill a deal on their own. They help you set a price you can live with, plan the first year of repairs and avoid buying a problem you cannot afford to fix. When you sell later, the same reports become part of your own disclosures, as our selling guide explains.

Frequently asked questions