[cuban leaf]

I was wondering about title insurance but I don’t think this would affect the title - yet.

[fireman15]

Someone at the title insurance company probably didn't do their due diligence. This is the type of thing that they are paid for.

“For the average real estate transaction, checking for any utility liens or unpaid bills on a property is simple. The title company performs a title search to show any liens filed against a property in the public record. If they find any, the seller will have to satisfy them before the closing. They will also request a final meter reading prior to closing to see if there are any outstanding balances that have not yet become liens.”

“The utility balance along with other unrecorded municipal debt and issues is found when a full municipal lien search is ordered by the title company or law firm handling the closing. At closing, the seller gives the settlement agent their new address to send the final water bill. Once they receive the final bill, they usually pay. On the rare occasion that the seller doesn’t pay the small amount left, it’s added to the new owner’s bill.”

But this can be a problem for foreclosures and bank owned properties.

“Often times, bank owned properties will not have the water and electricity on. This makes it nearly impossible to do a proper home inspection, which is highly recommended for all buyers to conduct. If a seller is resistant to turning on the utilities so you can perform an inspection, it’s a red flag that there may be some major hidden issues. Many banks will perform an inspection upon acquiring the property, so they may share this document with you. However, it may not be up-to-date and reflect current unpaid balances as was the case for the woman in Fairport.”

https://www.proplogix.com/blog/is-a-new-homeowner-responsible-previous-utility-bills

[fireman15]

We had a problem last year... the water company read the meter and it showed water use 100 times our normal usage. Because of the discrepancy they didn't send the bill out until someone could come out and see what the problem was. Two months later a couple guys came to my door and wanted us to turn off everything that might be using water. The meter was still spinning like a top because the line to our house was broken. They assured me that an adjustment would be made. I fixed it the next day, they told me I had to pay the bill which was a couple hundred dollars more than normal. The next month my bill was several hundred dollars more than normal because the leak had gone on through a couple of billing cycles.

They said they could only adjust the first billing cycle which they did, but they would not adjust for the two months after they knew about the leak but did not tell me. I eventually got it straightened out, but it took months of arguing and throwing fits.

So the situation on this thread could easily be from water company negligence.

[VTenigma]

Of course it does. The lawyer did the “title search” and missed the water bill arrears. His title insurance company and his errors and omissions liability insurance company are on the hook for the negligence of lack of due diligence.