Seller wants to shut off utilities, still have not closed...

Seller wants to shut off utilities, still have not closed...

Jonathan G.Pro Member
Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes

I just got a call from my realtor letting me know that the listing agent is asking if we need the utilities on anymore.  They would like to shut down the utilities since inspection is done and she is saying that they do not have any reason to keep it on.  

We are closing on September 12th and all inspections have been done and we are definitely buying the home.  

This is our first rental home and not to sure if this is a problem or if this is normal.  Just looking for any advice regarding this process.  Is this normal?  Should I push for it to be left on or is it fine to have them shut it all off?  

Thank you BP!

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Rental Property Investor · Dallas · Member since 2012 · 107 posts · 69 votes
12y

If you are using the standard TREC One to Four Family Residential Contract that agents in Texas use, then they are supposed to keep utilities on while the contract is in effect. 

See Paragraph 7A

7. PROPERTY CONDITION:

A. ACCESS, INSPECTIONS AND UTILITIES: Seller shall permit Buyer and Buyer’s agents access to the Property at reasonable times. Buyer may have the Property inspected by inspectors selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections. Seller at Seller's expense shall immediately cause existing utilities to be turned on and shall keep the utilities on during the time this contract is in effect.

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  • Dallas, TX · Member since 2011 · 308 posts · 59 votes
    12y

    What are you worried about?  If you are that concerned just turn them on in your name.

  • Jonathan G.Pro Member
    OP
    Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes
    12y

    Not worried, this is just my first time buying a rental property so I am just asking any questions that come up.  I guess this is normal so I really have nothing to worry about.  Thanks for your help.

  • Jonathan G.Pro Member
    OP
    Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes
    12y

    If I am going to be eventually doing a little bit of work to the house should I just turn it on in my name or should I wait till after closing to turn it back on.  

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    Its still their houses.  They could shut off utilities without your permission, so they're being courteous and asking if you still need them.

    Does the house have galvanized pipes?  If so, you are far better off leaving them on, assuming you're not planning to replace the plumbing already.  If you shut off the water and galvanized ends up empty (full of air) you will start getting rust and sediment as the air interacts with the damp and likely already rusty insides of the pipe.

  • Dallas, TX · Member since 2011 · 308 posts · 59 votes
    12y

    No problem.  If it was in winter then there would be a legitimate concern over pipes freezing.

  • Investor · Raleigh, NC · Member since 2013 · 1k+ posts · 708 votes
    12y

    @Jonathan G. 

     I wouldn't necessarily call it "normal" but it's certainly not unheard of.  The only problem I can think of immediately would be winter in a cold place where you'd run the risk of frozen pipes, etc.  In that case, as someone pointed out above, you could always set up the utilities in your name ahead of closing (some utilities may not allow that but most will).  That said, looks like you are in the South and it's early September, so pretty low risk...

  • Rental Property Investor · Dallas · Member since 2012 · 107 posts · 69 votes
    12y

    If you are using the standard TREC One to Four Family Residential Contract that agents in Texas use, then they are supposed to keep utilities on while the contract is in effect. 

    See Paragraph 7A

    7. PROPERTY CONDITION:

    A. ACCESS, INSPECTIONS AND UTILITIES: Seller shall permit Buyer and Buyer’s agents access to the Property at reasonable times. Buyer may have the Property inspected by inspectors selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections. Seller at Seller's expense shall immediately cause existing utilities to be turned on and shall keep the utilities on during the time this contract is in effect.

  • Jonathan G.Pro Member
    OP
    Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes
    12y

    Yeah not to worried about freezing pipes.

  • Jonathan G.Pro Member
    OP
    Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes
    12y

    Thank you @Matt G.  maybe i will point that out to my realtor and see what she says.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    12y

    If you are planning to do a walk through just before the settlement, then you want the utilities on. 

  • Jonathan G.Pro Member
    OP
    Investor · Tyler, TX · Member since 2014 · 96 posts · 22 votes
    12y

    This is why I love BP,  thank you all for helping this rookie!

  • Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    I always would want to keep utilities on. I want electric on to keep A/C running (in FL), and that would be the same reason I would want them on in your case. The higher humidity in the house with the A/C off can cause mildew growth and in the case of wood or laminate flooring causes them to expand. In extreme cases this can cause damage due to buckling. 

  • Investor · Colorado Springs, CO · Member since 2013 · 80 posts · 26 votes
    12y

    I just bought a house last week. I was concerned about the same things. My realtor said that I could change the utilities any time since we had an accepted offer. It was about four days ahead of closing and I went ahead and did it no problems.

  • Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
    12y

    That's odd, I would think they would just get them turned off day of closing, that's what people do here, they call in advance to have utilities stop being billed in their name day of closing. In your area do they actually turn the utilities off, or just come read the meter so they know what the final bill is? I would definitely want utilities functioning for the final walkthrough so you don't find out later after closing that the furnace or A/C or whatever stopped working.

  • Real Estate Broker · Los Angeles, CA · Member since 2014 · 97 posts · 30 votes
    12y

    Out here in California, it is cheaper in most instances to just transfer utilities to a new name rather than turn them off and turn them back on.

  • Property Manager · Myrtle Beach, SC · Member since 2014 · 135 posts · 13 votes
    7y

    We shut off the electric at the box and water at the street to our homes anytime we are not there. We also drain the lines in the home

    There are several reasons for this but if you have ever walked into your home that had the floors and cabinets finished then a pipe burst ...  lets just say you would have wanted to be there when the pipe burst ,,,, especially a second floor

    The other is you will want to be around if the ac malfunctions. EX: their drain tubes can and will plug. When that happens you have water in the house and then you will have mold. 

    Also the ac coil can loose freon and freeze the coil letting the fan run and burning out the fan from overheating and maybe a fire. 

    The Ac fan motor can stop and the coil freezes and keeps building ice and melts all over your ceiling .... 

    All things we have experienced... so off goes the utilities when we are not there

    There are several other reasons you can think of .... its just not worth it to keep them on

  • Specialist · Wesley Hills, NY · Member since 2018 · 20 posts · 10 votes
    7y

    Great question. If they're just asking, I'd say to leave it on. Everyone can discuss if it's needed or is it normal but I think it doesn't matter.

    While we always want to be considerate and giving to others, it's important to also have a mindset of "taking" or being "aggressive" in business. In this type of scenario where someone is offering to keep it on, always say "yes" because #1 it doesn't hurt and #2 you never know if you would end up losing otherwise. 

    Don't waste your time asking in response, "if its turned off, would the pipes freeze? etc". Develop the instinct to say "yes" in these situations you'll be a lot better off. It's a good business practice.

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