Real Estate & Property Law

Holding the Bag ? Unpaid Utilities

By Scott Eller, Esq.

Public utilities in Washington have lien rights against property for unpaid utilities. RCW 35.21.290 (water, electric), 35.67.200 (sewer), 36.36.045 (fees imposed for the withdrawal of subterranean water or on-site sewage disposal), 36.94.150 (connection charges). Private utilities do not have lien rights.

That is why escrow agents at the closing of a real property transaction pro-rate the public utilities that have lien rights, but private utilities that lack lien rights. It is also how landlords often get stuck with utility bills even though they are in the tenant?s name.

Water and electric liens are limited to four months charges. There are no similar limits for the other liens. The statutes provide for certain late fees and interest.

Note that some private companies act as billing services for public utilities. AUM is an example. While strictly speaking AUM may not have lien rights, the public utility for whom they process billing does.

Also, local ordinances effect landlords? liability for utility charges. In Seattle, for instance, a landlord may escape liability for a tenant?s Seattle City Light charges by giving required notice ten days prior to both the start date and end date of the tenant?s occupancy. SMC 21.49.100B,C.

A savvy landlord will monitor utilities closely.

Full post as published by Seattle Landlord-Tenant Attorney on December 07, 2007 (boomark / email).