Utility Bill Question

[Hal Cranmer]

I closed on an REO duplex in July and have been fighting the bank and selling agent to pay the delinquent water bill since. At the closing, the title agency called the water company (run by the city) who gave them an estimate of the bill at $800. The water company said that someone did call in June to have the meter read, but did not meet the rep from the water company at the duplex to let them in. When I started working on the place I had the company come out and turn the water on. At that time they noticed that the meter had frozen the previous winter after a pipe burst. They sent me a notification about the reading at the end of August saying the bill was $2,400 minus the $800 already paid so there was $1,600 left.

Here is where it gets interesting. The title company says that the REO purchase agreement has a clause saying that if I don't report any other bills within 20 days of close, they do not have to pay. The water bill was obviously incurred before I owned the property and I did not get notification of the correct amount until the end of August - 2 months later.

My question is - am I screwed and have to pay this? Or can I fight it? Can I go after the title company for just getting an estimate and not an exact amount? What is my best course of action. The water bill stays with the property by statute. I am also having my lawyer looking over the PA. Any advice would be much appreciated. Thanks.

Oh I also looked into making a claim with my title insurance but the policy does not cover water.