utilities in contract? - Posted by jay ville

Posted by KevinMiami on March 14, 1999 at 24:07:44:

Wouldn’t the amount of money that would be put in the escrow account be enough to cover account setup fees/deposits that are requiered by the utility company. In my area deposits are usually about equal to two months average usage.

utilities in contract? - Posted by jay ville

Posted by jay ville on March 13, 1999 at 16:45:17:

Here is the situation. I have a mobile home for sale. A 58 year old woman wants to buy it, but she asked me if I would keep the power and gas accounts in my name. I have verified the amount of social security she receives, so I know she can afford the home. My question is, could I keep the accounts in my name, but have it written in the promissory note that her not paying these bills to me would be one of the conditions to cause the note to go in default? She sad she could have her utility situation cleared in 6 months. I was also going to include in the note that I would close the accounts if she didn’t have them in her name by then. Any thoughts on this?

Thank you,
J. Ville

Re: utilities in contract? - Posted by Dave T

Posted by Dave T on March 13, 1999 at 17:51:50:

I have kept utilities in my name when renting property and it has worked reasonably well. My tenants do not have to pay extra deposits to the utility companies to establish an account in their name, and I ensure that the utilities bills are paid on time. My lease requires the tenant to reimburse the landlord for the utilities expense.

Why not set up a utilities escrow account with your buyer? Estimate the next three months of utilities expense and have your buyer put that amount into an escrow account.

At the end of each month, have your buyer reimburse the escrow account for the amount of the month’s utilities expense. You both mutually agree on how long you will maintain this arrangement. At the end of that term, the buyer establishes the utilities account in her name and you transfer the balance of the account to her. The balance should be enough to pay the next month’s utilties expense and any account setup fees/deposits that may be required.