Utility Transfer & Final Readings
Quick lien recap: Municipal liens attach to the property. If water, sewer, trash, etc. are handled by the municipality, a final bill must be obtained and paid on the final HUD / Closing Disclosure.
Title companies do not schedule final water/sewer readings for your clients. The service provider may require someone present at the property and others will not do the final reading unless authorized by the account holder, the Seller.
There are municipalities where the water is serviced by a private company (i.e. PA American) and sewer is serviced by the municipality (i.e. Spring Twp.). The final water reading decides the final sewer bill. The title company must have the final sewer bill paid on the HUD / CD because it is a municipal lien which attaches to the property. It is very important the Seller schedule a final water reading approximately 2 days prior to settlement to give enough time for the municipality to provide the final sewer bill. If there isn’t enough time, the title company will have to escrow 1.5x a proposed amount until a final bill is obtained.
Transaction Coordinators advise the Seller and Buyer to contact the appropriate companies to request a final reading / bill and transfer services when we send out settlement notices. If you have the Buyer side, TCs also provide a list of utility companies with phone numbers to the client. Your Buyers should contact the water & sewer service providers; however, to make transferring of electric, gas, internet, cable & phone services easier, have your Buyers agree to be contacted by NRG Home by signing the NRG authorization form. (Due to the Federal do not call list, authorization to call is necessary.) Include the client’s name, contact number, property address of the home they’re purchasing and the closing date on the form and have your client sign the form. Submit the form to Paperless Pipeline or your Transaction Coordinator and NRG will take it from there!
For more information on how Transaction Coordinators keep your clients informed and save you time, contact Ann DeCisco, TC Team Leader.