Tucson Sellers Responsibility Regarding Inspections and Walkthroughs
April 9, 2008
Post Tags: Arizona-Residential-Resale-real-estate-contract , BINSR , close-of-escrow , turning-off-utilities
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Save a Dime Spend a Dollar
You want me to do what? You want me to read the contract? I know this sounds like a lot to ask especially when you have so many things to think about as you are getting ready to move and watching every penny as close as you can.
The obvious thing many people think of is to disconnect the utilities as soon as they don’t need them anymore. However, if you read the contact you will find you need to keep those utilities connected.
Here’s the place where you might save a dime but spend a dollar. You will save a few dollars for the time the utility is disconnected but when it comes time for the inspection of the house or the final walk through the utilities have to be connected. All the reconnect fees are going to be a lot more than anything might save.
The ones which get the real double bite are those that turn off the utilities then have to reconnect for the inspections. Once the inspections are satisfied and the BINSR (Buyers Inspection Notice Sellers Response) signed by all parties they figure “I don’t have to keep paying these utilities.” So they have them disconnected again. Now it is time for the final walk through. Yep the utilities need to be turned on for the final walk through. This is the Bata Bing Bata Boom of saving a dime.
The best thing to do is notify the utility companies that as of “this date” (The day after Close of Escrow is good) you will no longer be responsible for the utilities and they should be turned off.
Buyers Take Note: If you call the utilities at least a week ahead of Close Of Escrow and notify them you will be responsible for utilities as of that date you won’t have connection fees. There might be other fees or deposits required depending on your situation and history, but you will avoid connection fees if the utilities are transferred and not disconnected.
Sellers working together with the buyer to make the transfer of utilities smooth is in everyones best interest.
The Arizona Residential Resale real estate contract states on page 6 lines 268 - 270
Sellers Responsibility Regarding Inspections and Walkthrough(s): Seller shall make the Premises available for all inspections and walkthrough(s) upon reasonable notice by Buyer. Seller shall, at Seller’s expense, have all utilities on, including any propane, until COE to enable Buyer to conduct these inspections and walkthrough(s).
One of the biggest mistakes Tucson home sellers make is the turning off of utilities to the property prior to Close Of Escrow (COE).
