Feb 12, 2010

Who is responsible for turning on utilities for inspections during a short sale transaction?

There are times when a seller lists their home for sale subject to a short sale that the seller has moved out of the home and the utilities have been turned off. So what happens when a buyer makes an offer and the seller accepts the offer? Who is responsible for turning on the utilities in order for the buyer to have their inspections?

Unless the buyer and seller have addressed this issue during negotiations the 3 of the common real estate contracts used in Central Florida provide the answer.

  • FAR BAR AS Is: “utilities service shall be made available by the seller” line 101-102
  • FAR BAR: “Seller shall...provide utilities service and access to the property for appraisal and inspections” line 264
  • FAR: “Seller will provide access and utilities for buyer’s inspection” line 148-149

Unfortunately I am finding that agents are failing to address this issue with the buyer or seller during the negotiation period. This adds confusion to an already complex and time consuming short sale transaction. In some cases agents are being asked to take on the responsibility of turning on the utilities themselves which is not something I would recommend.

Make sure when purchasing or selling a home where the utilities are off you know going in who is responsible for turning them back on.

Related Florida real estate blog posts on short sales

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