Q&As

Can a buyer of a property be liable for historic use of services including drainage and water which have never been billed to a previous owner?

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Published on LexisPSL on 30/01/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Can a buyer of a property be liable for historic use of services including drainage and water which have never been billed to a previous owner?

This Q&A relates to commercial property and all services referred to is assumed to be the usual main utilities (such as drainage and water, electricity, gas and oil).

It is best practice to take meter readings for all relevant utilities on completion and if there is any concern that the seller may fail to pay any utility bills incurred pre-completion, include an obligation in the contract for the seller to indemnify the buyer specifically. If there is a concern that the seller won’t have any cash (eg if it is a special purpose vehicle (SPV)) then consider requiring the seller to contact the utility companies pre-exchange to provide evidence of what bills have b

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