• Home
    • Blog
    • Seller wants the buyer or buyers agent to turn on utilities for the home inspection

    Seller wants the buyer or buyers agent to turn on utilities for the home inspection

    California Association of Realtors Residential Purchase Agreement Paragraph 10 section C:

    “Seller shall have water, gas, electricity and all operable pilot lights on for Buyer’s Investigations and through the date possession is made available to Buyer.”

    How does that float your boat? Chapter and Verse Baby!!!

    Of course everything seems to be negotiable in real estate.

    advice for real estate buyersSome negotiate outside of the box 🙂

    This came about from a new Foreclosure Listing, an actual REO, Real Estate Owned foreclosure, that hit the market in the Santa Clarita Valley a few days ago.

    In the confidential remarks, it stated, and I’m paraphrasing,

    Buyer or Buyers agent to turn on utilities so buyer can perform inspections, if need be. Seller or sellers agent will not activate the utilities.

    Let us say, for arguments sake, the Buyer loves the home. Let’s also say that the buyer is really wanting a home and has been searching with their realtor for a long time.

    It may happen that the realtor will tell their buyer that it’s no problem for them to call the power company, the gas company the the water company, and have the utilities activated for an inspection.

    That is not the advice I’d give any of our real estate clients.

    However, there could be other buyers willing to activate the utilities in their name for their inspections.

    I know it’s too risky having seen what I have, having worked with a few banks in the handling of their foreclosure assets directly. I have seen what prior owners, squatters and tenants poised for eviction have done to “set up” the home for destruction when the utilities are activated again.

    However, it could be the buyers willing to roll the dice, could activate the utilities, buy the home and all would be fine…

    I’ll tell you this, you better make sure, before hand, that there is no damage in the home’s electrical systems. Either caused by Act of God, by the owner that lost their home due to foreclosure, by outdated wiring, monkey rigged updates/upgrades, or by anyone that may have been squatting in the home between the time it was left vacant and the bank took possession.

    The sames goes with the internal water system. How long has it been non active? Are there any faucets that have been left running. Was there any “angry” destruction from the prior seller, squatters, etc.?  Maybe the pressure regulator is not working and the internal faucets are ticking timebombs preparing to give way to a whole house flood?

    Gas… Ka Boom!!!  

    What do you do?  Who do you call?

    Well, according to the RPA, Residential Purchase Agreement, Paragraph 10, subsection C, it’s the sellers responsibility to have all utilities turned on so the buyer can conduct inspections. And I also said that “everything” is negotiable in real estate.

    Make sure you hire the BEST Santa Clarita Realtor you can find. And We’ll leave the light on for ya 🙂

    10+10db 150hs 20hp 60bb

    Trackback from your site.

    Leave a Reply

    Contact Us Now

    Any questions, comments, or feedback

    SCVnest Radio Show (listen now)