Unpaid Utilities on Potential Deal

[Holly Radice]

I am looking into purchasing a 4 unit in Ohio as my first property. When we viewed the property it appeared that the water meter is not connected. We requested utility bills and after some time finally receive them. It looks like water is not being paid and I can only see a small fee every month (that is over due) meaning the meter is likely disconnected. In addition, the gas bills have shut off notices and are not being paid. (3 units are occupied and utilities are all paid by owner). Would I be on the line for paying these overdue bills upon purchasing? I am particularly concened about the water meters not being hooked up and potential charges there. 

Thank you!

[Bill B.]

If you’re In a title state make proof of utility pay off a condition of closing. (Probably same in attorney state but I have no experience there.)

it will make inspection problematic. What if you turn on water and it goes everywhere. Or you turn on power and there isn’t any? Depending on the amount owed I might pay it off after I’m under contract to do a property inspection and ask for the money back at closing. Otherwise you have to plan for worst possible results.