Step 7:

Utilities, HOA/POA/Condo Documents and Inspections

Utilities and Home Inspections are the buyer's responsibility at the buyer's expense

Utilities

Now that you have received the Ratified Contract via email from the Asset Manger, you have 15 calendar days from the date of ratification for inspections. Here are steps to follow in order to successfully activate utilities and schedule a home inspection.

This activation process is fairly simple as long as the procedures are followed. Please note that any damage incurred during utility activation is the responsibility of the buyer. YOU MAY NOT DO ANY WORK/REPAIRS TO THE PROPERTY PRIOR TO CLOSING regardless of lender requirements. The buyer is responsible for having the utilities activated. The buyer’s agent

must be present at all times when the buyer is at the property.

The de--winterization process will vary with each Field Service Manager. Please read the specific Field Service Manager's instruction for de-winterization and re-winterization.

1. Contact the appropriate Field Service Manager (FSM) to submit an application for authorization to have the utilities activated.  The FSM contact info will be in the email sent from the Asset Manager. You can also inquire with the Listing Broker or find the contact info on the HUDhomestore under the tab Property Contacts.  

Enter the HUD Case Number and contact information will be populated. 

The purchaser shall present this signed authorization to the utility provider when ordering activation. Purchaser agrees to NOT attempt activation without prior written authorization. The form must be signed by both the Purchaser and Agent and returned to the FSM for authorization.

2: Once you have received authorization from the FSM to activate Utilities, then contact the appropriate utility company and coordinate with your buyer and utility company to have utilities activated in the Buyer's Name.

All expenses associated with the activation of the utilities and testing of the systems shall be at the expense of the purchaser. The Purchaser is responsible for contacting the utility companies to have utilities turned on after authorization. (Note: Properties with already activated electric or water services should remain active and not transferred to the Buyer’s name). This does not grant permission for the Realtor or Buyer to put utility accounts in either the FSM name or HUD’s Name. 

Having Utilities Activated utility prior to obtaining the required authorization will result in forfeiture of earnest money.

Outstanding utility bills: If there are outstanding utility bills, please contact the FSM.

3. The Purchaser and Agent must be present at the time of the activation and must confirm that all water valves are closed prior to activation. Refer to the FSM Utility Activation Form for the responsible party for de-winterization.

Approval to activate utilities does not remove any liability of damages done to the property by the Purchaser. The Purchaser agrees to hold the Field Service  Management and HUD harmless for any damage resulting from negligence from testing the systems and further agrees that they are liable for any such damage. Purchaser should proceed cautiously.

Systems that are obviously and seriously compromised should NOT be activated in the interest of safety and preservation of the property.

Do not turn on water until the property’s thermostat has reached 60º F from October 1st through April 1st in all freeze zones.

After the system has been charged (Turned On), the main valve to the structure must be turned off at all times the structure is not being inspected or occupied. This is to protect the asset from a line break and flooding, and is not a RE-WINTERIZATION.

4. The Purchaser agrees to have the utilities activated for a period of 72 hours and further agrees to notify Field Service Manager immediately upon completion of deactivation and testing. Please notify FSM prior to any appraisals. 

The utility activation period cannot exceed 72 hours (excluding all federal holidays and weekends).

Purchaser accepts responsibility for any freeze damage that may occur due to their failure to notify the FSM that testing has been completed. 

Heat sources should be left on and returned to a 55---degree setting after testing until then home has been winterized. 

It is the agent’s responsibility to communicate with the FSM.

Properties with sump pumps must have electricity on at all times. It is the responsibility of the Buyer or Agent’s to ensure electric services are uninterrupted during utility tests. If the electric provider will not re-activate the account in HUD’s name, the buyer’s agent must make contact with the FSM immediately.

Step 8.

Appraisal and Repairs