Utilities switched before closing on the properties?

[Ryan Billingsley]

We are closing on two properties next week.  The owner has just informed us "they" turned the utilities off and wanted to know if we wanted to have them turned on in our name.  Is this normal to have the utilities switched over before the closing day?!?  IMO I feel that we should wait till the closing is complete and the properties are officially in our name.  For the seasoned investor, is this a normal situation to have?  Also the temps will be in the low teens and 20s this weekend with a chance of snow.  It could be dangerous to let the house get down to those temps.  Pipes could freeze!  What would you do in this situation?

[Account Closed]

In my contract the seller is responsible for the utilities until closing, and responsible to maintain the property in its current condition until closing.  Obviously if the pipes burst he's responsible.  However, if you put the utilities in your name, now I start to wonder who's responsibility it is.

The fact that you might have business dealings with this person in the future makes it even more important that you draw a line.  It looks to me like you didn't draw any line.  And therefore, the next negotiation you have with him will be even more difficult.

The fact is that the pipes are his responsibility, and therefore, if he turns the utilities off it's his risk, not  yours.  If something happens to the house because of no utilities I would not close if I were you.  Let's face it, he could have just as easily set up a shut off to coincide with the closing, which is what he should have done.