![]() The property may currently be on well and septic, but if the city has assessed it for water and sewer hookups, the new owner will have to pay for the remaining amount left for the extension of services. Other aspects to consider before homeownership are special assessments levied by public entities. The city has the option to lien on any of these properties if gas bills aren’t paid. Some of these cities serviced by the City of Clearwater extend far out of its governing county into neighboring Pasco County. For instance, the City of Clearwater in Florida provides gas services to residents not only within their jurisdictions but also in other municipalities. If the utility company that provides water and sewer is a private entity, the unpaid bills may go to collections in the name of the previous owner and not the property.Ī lot of people, even real estate professionals, often advise that the gas bills stay with the individual account holder just like electricity, but there are some strange caveats to that in certain areas. Most water and sewer providers are public entities that do lien on a property for unpaid bills. If the company is a subsidiary of the local government, it may be able to lien on the property. Typically, these accounts stay with the individual. Most utility accounts and other special assessments for hookups and improvements stay with the property: ![]() Who is responsible for unpaid utilities found after closing? The buyer or the seller? The only way to make sure you aren’t forced to pay a previous owner’s utility bills is to always get a final reading before closing on all utility accounts. However, it may not be up-to-date and reflect current unpaid balances as was the case for the woman in Fairport. ![]() Many banks will perform an inspection upon acquiring the property, so they may share this document with you. If a seller is resistant to turning on the utilities so you can perform an inspection, it’s a red flag that there may be some major hidden issues. This makes it nearly impossible to do a proper home inspection, which is highly recommended for all buyers to conduct. Oftentimes, bank-owned properties will not have the water and electricity on. Unfortunately, there was no final reading done before the closing, and the new owner is stuck with the bill. There were no signs of water damage to the home. Finally, the municipality turned off the water, but within that time nearly 1.3 million gallons of water had been used! The loan company and contractor have no idea where all that water went. There was a meter reading just before the house was foreclosed on, but the bank refused to allow the Monroe County Water Authority to enter the property for additional readings for nearly a year. was hit with a $4,000 utility bill after she closed on a bank-owned property. You can bet that if someone defaulted on their home loan, there are also other debts associated with the property, including things like unpaid property taxes, utility bills, and maybe even a code violation or two.Ī woman in Fairport, N.Y. If you are intending to buy a foreclosure, however, things can get complicated and expensive. ![]() On the rare occasion that the seller doesn’t pay the small amount left, it’s added to the new owner’s bill.Ī missed utility reading can cost $1,000s ![]() Once they receive the final bill, they usually pay. At closing, the seller gives the settlement agent their new address to send the final water bill. The utility balance along with other unrecorded municipal debt and issues is found when a full municipal lien search is ordered by the title company or law firm handling the closing. They will also request a final meter reading prior to closing to see if there are any outstanding balances that have not yet become liens. If they find any, the seller will have to satisfy them before the closing. The title company performs a title search to show any liens filed against a property in the public record. One aspect of homeownership that gets lost in that shuffle is utility accounts.Īfter all, if you are buying during the dead of winter or the height of summer heat, your move into your dream house can quickly become a nightmare without water, heating, or air conditioning.įor the average real estate transaction, checking for any utility liens or unpaid bills on a property is simple. The finer details of closing on a home can get lost in all the paperwork a new owner has to look through and sign. ![]()
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