Transferring ownership of a home is a complicated procedure, and part of that process is ensuring that the seller pays off energy bills. No buyer likes to be responsible for someone else’s unpaid payments, yet it does happen.
Of course, sellers should contact utilities and provide a forwarding address as well as a move-out date. The companies can then send the closing statements to the new address, with most additionally having the option of delivering a letter close closing to show that the account is current. Don’t forget to truly close the accounts; otherwise, the sellers may be liable for utility charges after they’ve moved out.
A simple overdue power bill can sometimes cause a sale to be delayed. When a utility is managed by a local government, such as the City of Mountlake Terrace, which provides sewer and water service to its citizens, a lien can be applied to an owner’s title if he or she is in arrears. When a lien is issued to a utility, the government can delay the transfer of title, whereas a private utility, such as Puget Sound Energy, must go through a collections agency to retrieve the money.
This form of lien has a simple solution. Escrow can be given permission to keep a percentage of the seller’s net revenues in order to pay the final bills. All that’s required is a Northwest MLS form with the utility companies’ contact information and all parties’ signatures on the buy and sell agreement.
This MLS form allows escrow agents to request payback statements from utility providers that have the ability to place liens on property. Unfortunately, some sellers leave blank spaces on the form, and escrow is under no duty to contact the unverified utility to inquire about a seller’s outstanding billsa potential red flag that a savvy buyer’s broker will investigate with his real estate counterpart.
Escrow retains payments from the seller until the form is completed correctly, ensuring that the bills are paid. Due to the requirement of an on-site meter reading, Seattle Public Utilities can be a little sluggish in finishing its billing for water consumption, forcing sellers to rely on escrow to complete the final payment. Within 3 weeks of closing the contract, the seller receives the unused balance of the escrow funds.
The MLS/utility form must be provided to buyers within 5 days after mutual acceptance. The names and addresses of the utility companies supplied by the seller can be entered by either the listing agent or the buyer’s broker. For the document to be official, both parties must sign it. To be clear, only government-run utility companies are eligible for bill payment by escrow on behalf of sellers.
Even if escrow or the seller have agreed to resolve final statements, buyers should contact each utility company separately to establish an account unrelated to the prior owner. As previously stated, some fees may be incurred by new homeowners if private firms, such as Waste Management, are unable to locate the previous owner. If at all possible, avoid letting a seller’s past-due payments ruin your new-home experience.
Some buyer brokers contact utility companies on behalf of their clients to differentiate themselves from their competitors. They use this to verify current homeowner statements and, if possible, determine typical utility expenses for the last 12 months in order to assist future owners in budgeting.
The seller must also reveal the source and condition of the domestic water supply, any water rights that come with the property, and the state of the sprinkler system, among other things (if relevant). This is part of the Seller Disclosure Statement, which can only be completed by the seller.
Working with a knowledgeable real estate agent will make the process go more smoothly. A competent broker’s trusted advice function includes understanding essential parts of utility bills and the important role escrow can play in clearing those arrears.
Is it possible for a buyer to speak with the vendor directly?
Technicallyyes. Buyer’s agents, who make their commissions from representing purchasers, are the only persons who would frown upon contacting a listing agent. However, there is no law or rule that prohibits a buyer from contacting a listed agent.
If you’re not actively looking to buy and are only curious about the property, let the selling agent know. Let’s say you’re in the early phases of the home-buying process and haven’t hired a buyer’s agent yet. According to Jane Jensen of Century 21 New Millennium in McLean, VA, “ask when the listing agent would be in the neighborhood and would be able to show you the house.”
When selling a home in California, what disclosures are required?
Only the duty to disclose the presence of lead paint is mandated by federal law. The state, on the other hand, establishes disclosure laws.
A Transfer Disclosure Statement (TDS) is required in California for any potential buyer whose offer has been accepted. This form inquires about specific problems or malfunctions that the vendor may be aware of. It inquires about the roof’s condition, electrical wiring, appliances, smoke detectors, and other pertinent property aspects.
You must also make a number of additional disclosures (noting whether the house is in a flood zone, for example). Your Realtor may give you with particular information on your disclosure obligations as well as the documents you’ll need to fill out.
The most crucial principle to remember is that you must disclose any pertinent facts that you are aware of, even if the standard forms do not directly address them.
What paperwork does the seller supply that describes the property’s condition?
The house-buying process is thrilling, with the prospect of a new home in which to create your life. The process is also highly stressful and can be completely overwhelming, which is understandable. The enormous paperwork that comes with buying a home is one of the most stressful aspects of the process. It might be difficult to understand the purpose of each document for first-time homeowners or those who have not gone through the process in a long time.
The document issued by the seller that indicates the state of the property is one that you must keep track of. But what is this document, and what does it contain? Continue reading to discover out.
When selling vacant land in California, what disclosures are required?
A. General Information Duties: You must affirmatively disclose to the buyer, in writing, any and all known facts that materially impact the property’s value or desirability. You must disclose these information whether or not the buyer, any broker, or anyone else has inquired about them.
Is it possible to save money by not hiring a buyer’s agent?
It is unlikely that buying a home without the assistance of a real estate agent will save you money. In most cases, the commissions for both the seller’s and buyer’s agents are paid at closing. However, there may be instances where going it alone in the property buying process is advantageous.
Here’s when you should or shouldn’t contemplate buying a home without the help of a Realtor.
How can I avoid using real estate agents?
We received no follow-up from the agent after viewing the house, so my partner called a few days later to make an offer, which the agent said us had been rejected. We enquired as to why, but the agent said that they had not enquired with the owner and was generally unhelpful.
We requested the owner for another look around the house last Saturday because we had their phone number. The realtor contacted on Monday to see if we wanted to look at other houses in the area, and we informed him that we had already had a second showing. The owner then called to explain that the agent had contacted and reprimanded them for going against the agent’s wishes.
We remain interested in the property, but believe the estate agent has been ineffective. From the outdated photos and description to the absence of information on the property’s condition: the bathroom requires gutting, there is cat feces and urine throughout the house, as well as wet. Is it true that estate agents do not even inspect a home before advertising it, given that the current ad is a lie?
In any case, we believe the owner did not go behind the agency’s back; they only provided us their phone number since the estate agent was so ineffective. Is there a way to avoid going via the estate agent and instead go through someone else? KT
A To respond to your last question, First, a buyer must make any offer to the estate agent that a property is being offered via until the seller of a property withdraws from their contract with an estate agent and puts the property up for sale privately. However, estate agents are expected to show any bids to the individual selling the property quickly and in writing. Agents are also required by law to pass on any property offers until contracts are signed. So, no, you won’t be able to avoid the agent. However, it is the responsibility of the person who has a contract with the agency to file a complaint if they believe the agent has failed to pass on offers. In your instance, it appears that your offer was passed on but rejected by the seller, so there’s nothing to be upset about on the surface.
You have every right to be dissatisfied with the property description. The Consumer Protection from Unfair Trading Regulations 2008 govern descriptions used by estate agents and lettings agencies in England and Wales (known as the CPRs). The Property Misdescriptions Act of 1991, which was abolished in 2013, was replaced by them. These rules prohibit “misleading actions” and “misleading omissions” that lead to the ordinary consumer making a decision that they would not have made otherwise, such as viewing a property. The term “misleading activity” is defined in a variety of ways, but in essence it refers to something that contains inaccurate information or deceives a consumer in some way.
It’s possible that out-of-date images and a lack of description of the house’s condition fall into this category. However, in the agent’s defense, the house may have been clean when he examined it, and if he was unaware of the damp condition, he is not liable for a misrepresentation in the property’s particulars. Agents are also entitled to present a property in its best light, so the particulars wouldn’t have have been dishonest if there wasn’t a photo of the decrepit bathroom. They would be, though, if there was a photograph of the restroom that did not show it in its current state.
You should contact your local trading standards department if you have a complaint about the estate agent’s deceptive information. Estate agents who fail to follow the rules while writing property descriptions are committing a criminal offense that has a potential punishment of an infinite fine and two years in prison if convicted.
When selling a home, what information should I provide?
Partner Philippa Rudd outlines how much information you must reveal when selling your home…
Last year, reforms to the Consumer Protection from Unfair Trading Regulations 2008 brought a positive improvement in the law relating to estate agents and how they treat property buyers. The Property Misdescriptions Act 1991 (which made it illegal for estate agents to disclose any false or misleading information) was replaced by these revisions to the regulations, and they have had a direct impact on how estate agents conduct their business. In a nutshell, agents must now appear to act in the best interests of both the seller and the buyer.
The following is the basic position:
- The agent must decide what information the buyer should have access to.
- This must be checked for accuracy and relevancy by the agent. If necessary, the agent must take reasonable steps to do additional research.
- The realtor must disclose all necessary information to a potential buyer in order to assist them in making a decision about whether or not to purchase a home. If the buyer is a ‘average consumer,’ the agent must consider this. If the agent believes the buyer is particularly susceptible (for example, a first-time buyer), he will have to go above and beyond to assist them.
- Any publicly known information (for example, a proposed new road, anticipated flooding, or high crime levels) must be disclosed to prospective buyers by the agent.
Clients who are selling a home frequently inquire about the information that must be supplied to potential purchasers. Sellers must complete a thorough Property Information Form (which is more in-depth than before), and we must respond to buyer’s solicitor inquiries about title documents, survey, and search results.
When selling a home, the caveat emptor (‘let the buyer beware’) law still applies, thus the buyer must conduct his own research and obtain a survey. Sellers must, however, disclose to potential buyers any deficiencies in the title documents as well as any latent (hidden) encumbrances (adverse issues). The latter has been ruled to include a right of way that was held to constitute a latent defect that should have been disclosed to the buyer, despite the fact that it was visible on inspection. Any boundary revisions or disagreements with neighbors should also be disclosed by the seller. Sellers should also consider disclosing any rights that influence their property, such as any services that run through it, any short cuts over their land, or any car parking rights that their neighbors have. Importantly, sellers should not presume that a buyer is aware of such issues, and instead should disclose them. Sellers must reveal any tenants (for example, a lover or grandfather), who must sign the contract as well.
Any official correspondence received by the seller must be disclosed. It’s also a good idea to mention any planning issues with the house or the neighborhood.
While sellers are not required to disclose physical problems, if the seller has purposefully disguised a known physical defect, a buyer may be able to sue for damages under the ‘tort of deceit.’
Finally, a word of caution. If a seller fails to disclose a defect that should have been disclosed, the buyer may be allowed to rescind (cancel) the contract and receive a refund of his deposit, or he may be entitled to damages…
If you are considering selling your home, I strongly suggest you to consult with your lawyer, who will be able to advise you on what issues need to be revealed.
What is the most typical real estate disclosure?
The most prevalent disclosures that top real estate agents claim they see are flooding and plumbing problems. “Because of the recent hurricane we experienced last year, the largest issue is always plumbing leaks and roof issues, according to Fonseca. “Many agents have been assisting their purchasers and ensuring that the roofs are in good functioning order.
According to Valdez, this is also an area where sellers are wary. “Because there are so many leaky basements in Chicago homes, homeowners are often apprehensive about sharing this information. And because it wasn’t disclosed to them when they bought the house, they may believe they don’t have to tell the next buyer.
“However, I usually advise individuals to reveal everything because it may come up during the inspection, and if it does, it will be much worse for them even after the closure.
How long do you have to pay when you sell a house?
In most cases, a buyer has six years to file a claim against you, while in some cases, it could be three years from the time the buyer discovers a problem.
What is the most compelling reason to condition your offer on a home inspection?
The home inspection contingency is the most prevalent inspection contingency in real estate.
A buyer has the option of making their purchase offer conditional on a house inspection.
Depending on the square footage of the home, a buyer might expect to pay between $350.00 and $500.00 for a home inspection.
There are very few situations in which a buyer would wish to make a purchase offer that is not reliant on a home inspection.
The most important reason for a buyer to make their offer contingent on a home inspection is to confirm that the house has no severe flaws.
Every property will almost certainly have faults discovered by a home inspection.
Several of the
