During a recent transaction, I had my first run in with the Tacoma PUD. Being that I work most often in the Seattle & Snohomish County area most often, this was my first experience with this Utility district...but MAN! They are very "wierd"...for lack of a better word.
My client closed on her home after a few delays. We were working with a short sale and there were a few challenges that popped up, but we were still able to close on time! Thank goodness, right?
Well, as my client gets ready to move in...U-haul truck and movers on the ready, we wait as she prepares to place the key in the door for the first time, in her first home!! What an exciting moment!!!!???!!! Well, thank goodness that it's daylight savings time, cuz the power had been disconnected.
So, like a good Real Estate professional, I call the Tacoma PUD! I ask them what is happening and give them all of the pertinent information regarding the home and the sale. Turns out there is a hefty balance that is unpaid by the Sellers and there is now a lein on the property. The balance MUST be paid in order to get the power turned on. WHAT?
A Lein? How could there be a lein! There was nothing on the Title report! Escrow said that there was only a small balance...really small balance on the address and that amount had been paid with the closing.Isn't that what the 22K is for? Turns out the Tacoma PUD calls past due balances "leins" but they really aren't leins. They are more like balance dues. They don't record them on the title at all, which is what a Lein needs to be valid. The Tacoma PUD merely refuses service unless the balance is paid in full. No money, no honey, no power, no water, no gas...nothing!!!
PUD disagreed and they were unable to do anything until Monday, so we had no choice. My client really needed her power to be turned on and here we were in a pinch! She paid the bill via credit card.
Monday morning came. I spoke to escrow about the matter. They had paid the small balance that the PUD had informed them of on the payoff request form. For some reason, the Tacoma PUD did not have any record of ever receiving it! Title showed clean. No leins for utilities or anything that Title could correct. The problem was with the PUD. Tacoma PUD kept showing NO RECORD of any correspondence or request.
I dutifully faxed a copy of the pay off request that the escrow closer had in the file. Still the PUD refused to accept this as evidence. 2 managers claimed that this was not sufficient. I did not know what else to do or say!!! It had thier stamp, with thier fax time and date info on the page. It had an employee name and number. But this was not enough???
My escrow closer got on the phone with the PUD and decided to send the info directly from the escrow office to the PUD manager. This was finally acceptable. It appears that having the same fax sent from MY office left room for forgery...and yes, I was rather insulted by that inference.
The happy solution to the matter is that my client will now be receiving a full refund for the $700 balance that she paid in order to activate her account. Escrow was able to prove that a pay off request was made and that the error was on behalf of the utility company. Turns out, the PUD was quoting the new account balance for the Sellers on thier NEW home. Some dingleberry forgot or neglected to check the address and also failed to forward the balance to the Sellers' new address.
The reason why I mention this is because, it is so important to be aware of what could happen in a transaction. This was my first experience with this Utility District. I will be sure to double check with them everytime in the future. Plus, this goes to show the quality and the dedication of my escrow team for this transaction. It really helps to know that you are working with dedicated professionals!
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