At this part of the selling journey, you would have already coordinated your signing date with escrow and hired a mover to leave the home. But there’s always one thing amid the hassle-frazzle of packing up and gettin’ out of Dodge that you ultimately forget. (No, not the cranberry sauce in the fridge…like my mother seemed to do on Thanksgiving…night, God bless her!)
Then, what is it?
It’s pulling the plug!
I’ve heard the stories: A month after leaving a home, a seller now living in a different part of the state forgets to inform one of the Seattle utility companies of the move – and he/she is still on the hook for paying the bill. Surprise!
Put down the masking tape and packing peanuts. Step away from the boxes!
Now is a good time to search for info on the utility companies that supply your home’s electricity, water, gas, cable and any other public service and inform them of your move. (This is also a good time to schedule to have your mail forwarded by the U.S. Postal Service.)
Yes, this is one of those annoying tasks that we all have to do before the BIG move … and some don’t think about it until it’s too late. That’s on you, as in that utility bill is on you until the oversight is addressed.
Unless otherwise stated in the sale agreement, the seller is on the hook to pay all outstanding utility bills. And with the proper signatures (or, in some cases, initials), escrow, for no additional fee, will take proceeds from the seller’s sale to pay remaining bills for utilities that can impose a lien against the title and prevent completion of the sale. That would include municipal services like, perhaps, water, garbage and sometimes electric. Unfortunately, some sellers fail to supply the necessary information about their utilities to have escrow pay those bills. Don’t let that be you!
Every utility has a slightly different process for disconnecting service or for arranging the bill to shift from one owner to another. If you’re moving to a new home within the same service area, you’re in luck. The transfer of service will be much simpler.
It’s almost never too early to get on the phone, as long as you know the closing and move-in dates. (Notice, I didn’t write “move-out;” that’s because you should leave electric and water service on until the home is transferred to the new owner.) In the case of electric, gas and water, you will likely be contacting the same utility to inform them of the change date and to order final meter readings.
Seattle Public Utilities can be a little slow in completing its billing for water consumption since an on-site reading is required, often forcing sellers to put extra funds in escrow to cover the final payment. City or county authorities could demand payment of a sewage capacity charge – due at or before closing – that escrow can also address. The seller typically receives a refund for overpayment of utility bills within 2-3 weeks of consummating the deal.
Your TV and internet providers, as well as phone and home-security companies may require more time than the rest of the utilities to complete a disconnect or switch. That’s usually because there is sometimes a need to remove equipment, such as a satellite dish or lines from the old home. Also, some folks lease their video doorbell and take it with them, replacing the device with a traditional bell in the departing home.
A quick tip: Sellers moving to a new area should think about temporarily “thawing” their credit freeze with the three major credit bureaus before contacting a new utility company. Your credit report will be checked when establishing an account.
Do your part and speak with your utilities now and hope your buyer is doing the same.
Seattle Public Utilities (Water, Sewer, Garbage, Recycling)
Seattle City Light (Electric)
Puget Sound Energy (Electric and Gas)
CenturyLink (Phone, Cable-TV and Internet)
Comcast / Xfinity (Phone, Cable-TV, Internet and Security)
Astound Broadband (Phone, Cable-TV, Internet and Security)
NOTE: This article was revised in September 2020 to make clear that escrow can only pay utility bills that would apply a lien against the title and prevent settlement of the home. Sellers are responsible for closing or switching all utility accounts.