I think that you and I have the very same goal: To have a very smooth closing and our transaction records & funds on schedule with our parties so pleased at the outcome that they want to talk about what great service that you and I provided them to all their friends and co-workers. Right?
Well, there is an area that needs some improvement with regard to utilities. Ever since the Washington State 54th Legislature enacted "Satisfaction of Unrecorded Utility Liens at the Time of Sale of Real Property" back in January, 1997, certain utilities can create liens on the property for non payment. Yes, that's right - the sellers unpaid water bill can become a lien on your buyers new property. Its not just water, but any utility provided by a municipality (essentially).
Most of the Purchase & Sale Agreements that I see call for the utilities to be handled in escrow and you are very good about attaching the NWMLS Form #22k "Identification of Utilities" to the Purchase Agreement and it is initialled by all parties. So far, so good, right? You bet, until we look at the content to order the utility demands from the companies that service this property and discover that the seller didn't fill it out.
This is really important, especially if you are dealing with a Short Sale and need to get quotes quick (the statute gives the utility companies 3 days to respond) so that the estimated HUD can get prepared and out to the underlying lender. I have seen utilities as high as $3500 per utility in delinquencies.
Language in the SHB 2388 clearly states that the closer isn't liable if the seller provides inaccurate or incomplete information, but that won't make our buyer happy and they will not be thrilled with the services provided if I accept that "out".
So, thank you to the agents that make sure the sellers take an extra minute to jot down the names of the utility company's on the NWMLS Form #22k!! You are the cream of the crop & I appreciate you!!
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