Should utilities remain connected after sale? Settlement

I sold a property today, a little lower than expected but acceptable. Gas, water and electricity are connected. The mail was cleared, something I should have had the selling agent do each week. There are letters from gas and electricity companies asking me to contact them or they will disconnect. Settlement terms are 60 days.

I'm unaware of the way that this aspect is managed. Should I have the utilities disconnected or leave them in place for two months?

Settlement is 3 October. It would be convenient for me to have this on 2 October, as it appears that I need to be present at settlement. I'd ask the buyer if he can manage this, and only proceed if he agrees in writing. Is it much hassle to have settlement a day early? TIA

 

I don’t believe you ever need to be present at settlement. Usually the conveyancer does this.

From the disconnection letters, it sounds like you haven’t been paying the bills?

Houses I’ve bought have always had the electricity connected right up to settlement. This makes it easier to check that the property is in the same condition, as when it was sold. However, I don’t know if it’s actually an obligation on the seller?

 

In WA it it normal to have a presettlement inspection where the Buyer makes sure everything is in working order. To do this they need electricity.
If the property has been tenanted and the tenant has closed the utility accounts then often they are left open for around 30 days and I use that or I put accounts into my own name to get it through inspection.

 

Thanks. I can pay the utility invoices, another deduction to reduce a rather startling CGT figure. I last sold a property around 2006, and am unfamiliar with the details of settlement. I guess I can leave the keys with the selling agent. Payment will be to several banks - mortgage and high-interest accounts or term deposits. I want to spread the risk and be assured of the government guarantee.

 

As soon as settlement is confirmed, phone and cancel all utilities so you are not paying for someone else to use.
Marg

 

Thanks, useful. Due to the mail not being cleared I did not see increasingly dire warnings from the gas and power companies. The power is connected and the power company, Momentum, will pay for the period from the tenants leaving until settlement. I have to pay AGL gas about $50 for the period after the tenants left until disconnection next week, which they were going to do anyway as nobody replied to their letters. The selling agent and the conveyancer said that it's okay to disconnect. The only other invoices are OC and council, will pay soon. Then there's a nice problem - where to park a large amount of money for a few months until I buy a new property. I will manage this with a stoic disposition and a brave face.

The details are quite easy, but the number of them is daunting for those unfamiliar with the process. Having a selling agent and a good conveyancer costs but saves a lot of aggro and a possible adverse result.

 

An update. I advised the water, gas and electricity companies that I was leaving. The water was easy - an invoice was paid automatically on 2 August. The gas company was going to disconnect on 15 August and send me an invoice, not received yet The electricity company said that as nobody had contacted them it was an owner occupied account, and I don't pay anything. The power will be disconnected. I suspect that different utility companies have different policies about these sort of things. The local council took me off direct debit and I paid one quarter. The OC payment is due on 28 September, a week after settlement, nothing to do with me.

Three times I have asked the selling REA to check the mail, no reply on this point.

 

Take care that your solicitor knows of any rates, land tax or OC being paid near settlement as they may have already calculated adjustments based on clearing the debt/s. You could pay twice doing this.

The REAs job is not to check your mailbox. Its not in their agreement. They are ignoring you for valid reason - Its not their job. Ditto he wont mow the grass either.

 

Not the REA’s responsibility.

If you have had personal mail sent to this address, lodge a change of address redirection notice with Australia Post.
Marg

 

The conveyancer knows about all my accounts. the only one left is gas, which is to before settlement, should not have an impact. It is not a big ask for the mail to be checked every 7-10 days. Also, if he cannot manage this then he should so advise me. It's rude being ignored.

 

Offer the REA $1000 an hour to clear your mail then. Or you could just fix it yourself, as you say, not a big ask.

 

I have long adopted a position of under-promising and over-delivering. Doing more than is strictly necessary builds reputation and relations. By not looking after me as much as they could for the mail and a few other issues the REA has done themselves a disservice. I will not be recommending them.