One of the most common questions I get when meeting a potential buyer or seller, is what happens with the utilities when they purchase or sell a new home. It is important to note that escrow will not pay off any private utility company, like your cable company or Puget Sound Energy. Those accounts, must be paid outside of escrow between the buyer and the seller.
When the Purchase and Sale Agreement instructs the title/escrow company to handle public utility payments, these will most likely include Garbage, Water and Sewer providers. The escrow company will get account balances ordered, paid and pro-rated at closing. Utility providers historically will quote estimates that exceed average usage by 3x to avoid underpayment/incidentals while service is being transferred to the new owners. Remember, you as a buyer/seller must call all utility companies on the day of closing to confirm that the recording has happened and to provide their forward mailing address(es.) Once they get a call from the seller, they will read final meters and reconcile accounts. Buyers must call upon closing as well, to complete the transfer and establish service in their name.
I bring this just as an example of the many questions people who may be new to the process of purchasing a home. It’s one reason to always use an agent who has experience in the complex process. If you have a question about this process, feel free to contact me with any question you may have. I would be happy to send you a PDF of my “Guide to Buying a Home” booklet as well!
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