PRIVATE UTILITY ASSESSMENTS are growing in Montgomery County, Maryland as builders who are asked to fork over upfront funds for infrastructure development costs are creating these private utility assessments to push the cost onto buyers that is financed over many years.
In Montgomery County, MD the seller is supposed to disclose these private utility company assessments, but sometimes they forget about it (even though there is an annual bill) or don't understand their relationship to the sale of their home.
So how are we supposed to know if there is a private utility assessment on a property?
There is no easy answer here. Normally the costs for these improvements are financed and put on the tax bill as a "front foot benefit charge". Some of the properties with these private utility company assessments have both the private utility company assessment AND a Front Foot Benefit Charge, which is even more confusing.
There is little conformity about these private utility company assessments and they can create problems for title companies, title insurers, and home-owners alike. These "agreements" sometimes have language squeezed into them in so they are superior to all subsequent liens such as mortgage loans.
In summary, these private utility assessments are not easily identified as they may not reported on local tax bills or with a lien, and the terms and amounts can be elusive as well. So, when purchasing a newer home - ASK about any private utility company assessments.
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