Tuesday, May 27, 2014

In New York State, is it a law that utilities need to be on during the second walkthrough or closing?

Question

In New York State, is it a law that utilities need to be on during the second walkthrough or closing?



Answer

If the utilities aren't on, the walkthrough is almost pointless. Either reschedule the walkthrough or, at the very least, contractually provide that a sum of money be held in escrow after closing so that you can be certain that expensive repairs are not necessary. Make sure to also provide by means of a written agreement that the representations that all utilities and plumbing, heating, cooling, and electrical devices are in good working order expressly survives the closing. If you are not represented by a lawyer, I think you should be. And if you are, speak with your lawyer about this.



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