Hi Joseph I have had this happen to me and the inspector charged my buyers which I think is wrong I had no idea the utilities were off and actually neither did the listing agent, which should have made sure but still. sometimes in foreclosures though there isnt much we can do the people owe so much in unpaid utility bills that they cant afford to get things turned on.

Heather, the listing agent should have looked into it and verified it.  I just don't think it's right to charge the buyer.  My one exception would be to at least charge for gas if I had to travel a distance.  I can't actually lose money by helping someone.

I agree the agent should have known the utilities were off and told you, but I don't know how you feel the agent is going to get them turned on? The bill may be in the hundreds, if not thousands of dollars. You couldn't even access those accounts to pay them if you were so inclined.

The utility company's will not restore those services until they have written documentation showing the property has changed ownership. so the buyers would likely have to wait until after closing (goes with short-sale territory). If an inspector billed my clients for this mishap, it would be his last inspection at a home I sold.

Michael, in California real estate agents can contact the utility company and have them turned on for a day for something like $25 (at least that's what I've been told by agents), I'm sure some type of documentation must be submitted.

If the buyer is told the utilities cannot be turned on, that's on thing.  But they buyers I have worked with lately have been told the utilities would be on, and they weren't.  That's clearly the sellers or sellers agent fault and they should pay for any subsequent visits to the house since they wasted everyone's time.  I hope you would agree with that.

All I can say is that if the utility bills aren't going to get paid till after closing no one is going to be able to get an adequate inspection till after closing either---sounds risky.  I will inspect houses like this but someone does have to pay for the extra trip.  Sometimes the agent picks it up----it shouldn't be the buyer and the inspector shouldn't have to eat the extra expense. 

This happens alot on REO,foreclosures and the like. You would think this would be taken cared of prior to. What a pain in the rear.

Charles, very well stated.

Robert, I agree.

Joseph - great point!  I will not let a Buyer (as a Buyer's representative) have an inspection done unless the utilities are on, and I specify that in the contract of those homes in which the utilities are off at the time of the contract.  Big issue right now and something all Agents should be mindful of.  Thanks.

Sure Jo, I agree with that. I don't think thats the case here, That should be a disclosure you make to them at the time they call you though, not a surprise.

Derek, that's great to put that in the contract, good thinking!

Michael, I'm sorry it was vague at first.  I have no problems as long as the buyer is aware of it and accepts it.