When it comes to moving into a new residence, there are many things to consider – and one of these is the potential financial responsibility of utilities left behind by previous owners. This is especially pertinent when it comes to water bills, as there are a range of potential scenarios that could require an individual to pay for water services used by a previous owner. It is beneficial for all homebuyers to understand the legal implications of such a situation, and to know if they are responsible for water bills from the former occupants. Such knowledge could help them to negotiate the best possible deal when buying a property, and avoid confusion and financial stress further down the line. This blog post will explore the issue of responsibility for a previous owner’s water bill, and provide an understanding of the legal landscape when it comes to settling outstanding accounts.
If everyone involved cooperates, the adjustment can be handled quickly and easily. However, it’s advised that you always seek advice from a professional when addressing these issues to prevent any mishaps. Rest assured that the Deeded team is here to assist you in any way we can if you have any additional questions.
We’ve outlined below the precise steps you should take to resolve things if you find yourself dealing with a bill from a previous owner.
Your initial assumption might be that the seller has ulterior motives and is attempting to elude paying their debts in a timely manner. However, chances are that this is probably not the case. The most likely scenario is that the previous owner never received their bill, or occasionally, the municipality did not handle the ownership change in a timely manner.
However, when you go to check the mail, you notice a most unwelcome surprise. The city indicates there is an amount owing from the previous owner’s bill.
We advise you to speak with your attorney as soon as you receive your supplementary property tax bill to make sure everything is in order before speaking with the builder’s attorney to properly adjust the bill between the parties.
If we were unable to get a meter reading for your meter, an estimated bill is sent. You can quickly compare the estimated reading on your bill to the reading on your meter if this happens once or even twice. Visit Water Meter FAQs to learn more about your water meter. To arrange an appointment to fix or install an automated meter reading device, please call customer service.
DEP employs quality assurance specialists to guarantee the accuracy of your bill. Before they are mailed, unusual billing spikes are flagged and reviewed. If there is a question about the meter reading, DEP will send you an estimated bill until precise readings are available. Customers may file a formal appeal if they think their bill is incorrect. After receiving your bill, DEP staff will manually check its accuracy and reply to you in writing. If you have any questions, please contact Customer Service.
In NYC, the majority of small properties are now billed based on metered usage as determined by the water meter on the property. Most customers’ water meters are read by an automated meter reading device once every four hours, and bills are generated once every three months. Visit Water Meter FAQs for more information regarding your water meter.
We charge water and wastewater bills to all properties in New York City that use our services. Most properties have a water meter at the head of the water service pipe where it enters the building that measures how much water is consumed there. The system expects each connected property to have a minimum of one account.
Like other water utilities across the nation, our budget is supported by money received from water and sewer usage fees. These rates must be set by the New York City Water Board, who must make sure they can cover all of our operating and capital requirements. This covers wages and benefits for our over 6,000 employees as well as significant capital projects to safeguard our vital infrastructure and guarantee that New Yorkers have a consistent supply of drinking water for many years to come.
However, as an illustration, some water departments will issue a full payment certificate at or just before a sale to demonstrate that the city’s water department has no outstanding bills against a property. We believe that if Baltimore issues a letter confirming that all fees owed to the city are fully paid, that should be sufficient to reassure your buyer.
I did get bills from the city, and I just realized they were for sewage and waste. When I discovered this I notified the city. After numerous discussions, the city installed a water meter without charging any additional fees. I signed a contract to sell the house to a buyer who requests that I hold a significant sum of money in escrow as insurance and indemnification in case the city sues the new owner for unpaid water bills. This buyer would be an independent successor in ownership. Could the new buyer have any liability?.
There are several possible outcomes for this, some of which are not in the new owner’s favor. We can’t go into the various ways that water departments bill for water or the responsibility and liability a new homeowner can have for water bills incurred by a prior owner.
On the other hand, some municipalities bill their water fees similarly to other utility providers, and the homeowner who used the water is personally responsible for the utility bill. Similar to how the electric company will pursue the account holder rather than the homeowner if you don’t pay your electric bill
A: Thanks for your question. These days, more cities and municipalities are looking for any possible sources of income. As a result, there is a good chance that your buyer will be charged by the city water department for unpaid water bills and other fees incurred before the buyer actually purchased the property.
Who is responsible for paying your water bill?
FAQ
How do I transfer my water bill to a new owner in NYC?
Download the form for updating owner contact information or opening a new water and sewer account. Call 311 or 212-NEW-YORK (212-639-9675) to request a paper copy.
Am I responsible for previous owners water bill UK?
When bills are registered in the tenant’s name, they become their financial responsibility as soon as they move into the property. Utilities Registered In The Tenant’s Name But they are not liable for any debts that previous tenants left behind.
How far back can you be billed for water UK?
Companies may charge you for unpaid water and sewer charges that go back up to six years. However, this will depend on the circumstances of your case.
Do unpaid water bills affect credit?
Rent, utilities, and other non-credit bills are typically not reported to credit bureaus, so paying them on time won’t improve your credit score. But if they’re extremely late or in collections, they’ll probably be reported and have a negative impact on credit scores.
Reference:
https://www.nyc.gov/site/dep/pay-my-bills/billing-faqs.page
https://www.nyc.gov/site/dep/pay-my-bills/overdue-water-sewer-charges.page