Q: I’m confused about when sellers are supposed to shut off utilities and how these get transferred. Determine how much time the buyers have to vacate, and set forth what will happen if they don't. Transfer utilities. There is a fair amount of expense to turn power and water on, then have to winterize the property again prior to closing. Buyers can often cancel before the sale closes. These days many utility companies allow you to set up service online and they have made the process less cumbersome. Bernhardt Law Firm. Use at least 8 characters. "Agreement for Occupancy Prior to Closing." Ilyce Glink is an award-winning, nationally syndicated columnist, television reporter and radio talk show host who is widely known for her expertise on trends and issues in real estate and finance. Depending on where you live, a new buyer should consider the following services and how they are supplied to the home: water, sewer, refuse, electricity, gas, phone, cable, internet, alarm. Any ideas??? All Rights Reserved. It’s generally easier to continue service than to have it cut off and then restarted. Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. Apparently, however, the seller is under no obligation to leave the utilities on after the closing date. In Virginia, you don't need to show that you own the property for them to turn on service. Buyers usually make this request because their apartment lease has ended or their old home has already sold, and they need a place to live immediately. For some, internet may be the most important thing to set up, but from a homeowner’s perspective, water, sewer, electric and gas are the most important. Pre-Occupancy Agreement (Daily Rent Required). You may have to eat the costs if you are not willing to take the chance on the condition without utilities on. They might notice things that they previously overlooked and that they now decide they can't live with. Most often, these aren't genuinely necessary fixes. Sellers should be sure to stipulate before the buyers move in early that any and all repairs are spelled out in the contract and have already been agreed to. market crash. We just need a few details to get you set up and ready to go! Her syndicated column, “Real Estate Matters,” offers common sense information and practical insights for anyone thinking about buying, selling, rehabbing or refinancing a home. PasswordUse at least 8 characters. The former buyers would voluntarily vacate in a perfect world, but some agents have found out the hard way that homeowners often have to take legal action to remove them from the premises after a sale falls through. The listing agent is back to square one should this happen, trying to find another buyer for the home, but with an unwanted tenant in residence—the first buyer. I would present it to him/her as the price to pay to bid on foreclosures, which in some cases offer a good opportunity to get a property at a lower price. Finally, for some municipal services, you may have to visit or call the municipality to set up the account. © 2020 Tribune Content Agency. Buyers should agree in writing that they won't modify the home without the consent of the owner, or that they'll pay to return the home to its former condition if closing doesn't take place. Assessments If your HOA requires annual property assessment, it may need to be paid upfront in a lump sum. In cold weather climate, you better make sure that you’ve set up both electric service and gas (or oil) service to make sure you don’t run into a situation where the weather gets so cold that water supply lines could freeze. Given that the seller's name is likely still attached to the electric and gas bills, it might be easiest for you to pay those costs directly, rather than reimburse the buyer. Will appreciate any inputs. What has to be done before/on/after the closing day in respect of the following: Utilities (Hydro, Water, Gas) Cable Land Line Is this something my Lawyer/Real Estate Agent will take care off, or is it something I need to take care of myself. Connect with 1,000,000+ real estate investors!