Know the water bill history before buying a home in Michigan
(CBS DETROIT)- Many people don't know that in Michigan, the home's water bill stays with the home. So if you buy one with a large water bill attached, that bill is now yours. Bryan Peckinpaugh from Detroit Water and Sewage Department explained why this is and what buyers should be aware of.
"State law. There's a Water Lean Act since 1939 in the state of Michigan. Four other states have similar Water Lean Acts where there's an outstanding balance and if it's not resolved during the closing or purchase process of the home, it transfers to the new owner," said Peckinpaugh.
We found homeowners who have had water bills in the thousands, and now the new owners are on the hook for them. But that doesn't have to happen to you.
BEFORE YOU BUY
First, call the water department to find out the current water bill of the home you want to buy.
"Anybody can call and say, I want to know the balance of such and such address. We will give that balance," said Peckinpaugh. We won't provide any other details, but we will give the balance.
ASK FOR A REAL ESTATE CLOSING BILL
"So the buyer needs to encourage and at request as part of the purchase that 'I need a real estate closing bill'. It may take up to 30 days depending on the age of the meter inside that property," said Peckinpaugh.
IF THERE IS NO WATER USAGE AT THE PROPERTY AT ALL THAT'S A RED FLAG
"If not, there's instances where if that wire has been custom tampered with, it could stop sending meter reads," said Peckinpaugh.
IF THE BILLS ARE VERY HIGH, THAT'S AN INDICATION THERE IS A LEAK IN THE PLUMBING
"The meter would see all this volume coming into the house because of a leak. We will be able to note that with the new purchaser that there is a leak," Peckinpaugh explained.
ASK IF THE HOME HAS LEAD SERVICE LINES. IF SO, YOU CAN HAVE THEM REPLACED FOR FREE
"By state law within the next 20 years, we have to replace every lead service line in the city of Detroit at our cost. So we are working with our state and federal partners to get more funding that will help us accelerate the replacement and help us to replace 5000 red lines per year," said Peckinpaugh.
