n real estate, there is always something that may come through the grape vine that may have at least one cause of concern for the seller from a legal standpoint, and you are selling your home. There is some good information I viewed concerning water assessments in a real estate transaction from the Arizona Association of Realtors (AAR). The same would go for sewer. If you received an offer from the buyer’s agent, I as the listing agent would read through the purchase contract, and water & sewer assessment information are not listed in the “title and escrow” section of the contract. Reviewing the AAR contract at page 3, you’ll see this scenario stated on line below starting on line 127.
Assessment Leins: The amount of any assessment, other than homeowner’s association (HOA) assessments, that is a lien as of the Close of Escrow (COE) shall be Paid in full by Seller or prorated and assumed by buyer. Any assessment that becomes a lien after COE is the Buyer’s responsibility.
So, you’re selling or looking to sell your home. You perhaps may have a concern regarding city water assessments and have one simple question if your home is under contract and the box Paid in full by Seller is checked in the purchase contract.
The answer is, “You do!” Yes, the seller would have to pay water and sewer assessments. According to AAR, it states, “pursuant to the parties’ contract, the amount of any assessment, other than a homeowners’ association assessment, which is a lien at the close of escrow, will be paid as indicated. The purchase contract indicated that the seller is responsible for the assessment. The seller signed the contract and is required to pay the sewer assessment.”
Of course, you, the seller is owing the city money on the assessment of water and sewer during the time ownership the buyer wants you to pay. In the contract, the terms “amount of any assessment” would include all city assessments. It would not close escrow if you, the seller disagree.
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