Do I have to pay old water bill on wholesale deal?

Question

Do I need to worry about water bill on home when wholesaling?

Kyle J. · Answer

@Yusef Dorsey If the water bill is attached to the property, someone will need to pay it. Usually the seller since they incurred it, but sometimes with wholesale deals the buyers will often pay a lot of the seller fees. Just depends on what’s agreed to in the contract.

Account Closed · Answer

Yes, someone has to pay it. If you don't disclose it to your buyer it could blow up your deal.

JD Martin · Answer

As said, it depends on where you are. When I was in Ohio an unpaid water bill was simply attached to the property and paid through the next year's taxes, assuming the property owner didn't want to not pay their taxes. Down here in my area (TN/NC/SC) utility bills belong to a person and cannot be attached to the property.

John Barrows · Answer

Wholesaling is in of itself, a different animal when transferring ownership.

1. You have NEVER TAKEN TITLE to the property. You've merely found a seller desperate enough to believe the BS that is given to them from person's like yourselves.

2. The new person taking over the "option", lease to buy or how ever the contract is written, will have to no responsibility except to close or sell the paperwork from the time of acceptance. Understanding in majority of cases, that no money exchanges hands until closing of escrow happens and title is recorded.

3. During all of this time that you, the wholesaler, the person buying and the principle "seller" are under agreement, THE BANK and it's MORTGAGE AGREEMENT with the seller, WILL, IN ALL CASES supersede and agreement the SELLER & 1st BUYER,WHOLESALER has agreed to.

4. Unless the Financial Institution agrees to allow this transaction to proceed, NO MONEY WILL CHANGE HANDS! I have witnessed all of the above and watched the SELLER & WHOLESALER lose the deal at closing because the BANK REFUSED TO RELEASE THE LIEN! WHY you ask? Because the lien holder believes they can get more money at an auction OR have their (secret hedge fund) buy the house themselves then (WRITE OFF THE COSTS) at the end of the year. YES, they will still own the house through the fund but inevitably, be the benefactor of the purchase.

5. LAST, any wholesaler who has an OPTION, LEASE TO BUY, CONTRACT TO SELL, agreement, only has the right to purchase and does not OWN the property! Remember this folks, you've merely gained a right purchase and not ownership. READ THE OWNERS DEED of TRUST. Banks have the liens, owners have the title, until forfeiture. Unless the property is PAID OFF, the seller will have no recourse and will have to abide to the financial institutions guidelines.

Because the wholesaler has never lived in the property, never owned the property, never took title to the property, NO taxes, water bill, sewer bill or any other type of bill or disclosure would be entitled by the wholesaler.

Daniel Smyth · Answer

@Yusef Dorsey

No, not for a wholesale.

They buyer of the home may need to ask the Mayor to forgive the previous Bill's or liens fro lack of payment. Some municipalities add fines for not mowing the lawn or following other code regulations to the water bill.

I wonder. Perhaps these fines and fees could be set in an escrow account at purchase, and the fees and fines dismissed by the governing bodies  when the property is renovated.

You and your lawyer need to talk to the city for acwin!

Kyle Shankin · Answer

The important piece here is "...what's agreed to in the contract."

If you're wholesaling the property, you can either agree to have your buyer pay for the final water bill (and then make sure you tell your buyer that's part of the deal) or have your seller pay it before close.

If you're on the buying end, read the contract so you know what expenses you're agreeing to.

There's no standard in negotiations, so be active when talking to all available parties and know what you're agreeing to do and what they're agreeing to do.

Chris Ball · Answer

Just curious, what gives you this concern? You as the wholesaler won't own it; you'll just be putting the property under contract and assign it to an investor who will be the one purchasing it, who will then be the one concerned with all the bills.

Do I have to pay old water bill on wholesale deal?

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