Multifamily Utility Transfer. Buyer Won’t Connect Service.
Bizarre situation. Sold a mid sized MF and it’s almost a month post closing and the buyer won’t transfer utilities over. It’s a weird municipality where they won’t disconnect until there is a transferring entity to take over the billing. 

Any creative ideas to force their hand or am I overthinking it and just let the city lien up the property?  Of course our entity is on the hook for the bills but it doesn’t own any assets in this municipality anymore so who cares?  The PSA has a utilities transfer and post closing reconciliation clause but we’re not exactly keen on suing them for $5k or whatever the bill ends up being.
[{"id": "holpcwz", "text": "Can the city really do that? Call/email them with a copy of the bill of sale and all the buyers info and tell them they have everything they need to put it in their name.. take it up the ladder with the city if you have too, see if they will track down the buyer and fight this battle for you", "replies": [{"id": "holqxic", "text": "Preach. Ridiculous I know. It\u2019s some sort of tenant protection from utility disconnection. It\u2019s water only so the city has full control of the process and they won\u2019t disconnect.", "replies": [{"id": "holrc2f", "text": "I\u2019d push the city harder.. tell them it\u2019s unacceptable and you want to talk to a supervisor. You are literally providing them proof of sale and all the new owners info. If that truly won\u2019t work, sue them while it\u2019s still a small claims issue and include attorney fees. My guess is after the first summons they\u2019ll take over the service and you\u2019ll be out 1-2 hours of attorney fees, a lot cheaper than some of the alternatives", "replies": [{"id": "holuvkw", "text": "You\u2019re probably right to Karen the city to death and pull the pin and throw a bomb at the buyers early.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "holqacl", "text": "I don\u2019t understand why they wouldn\u2019t let you turn off the utilities if it\u2019s in your name, but I\u2019d contact the utilities with a copy of the bill of sale or whatever documentation you have showing that you are not responsible for current billing. Do this as soon as possible and make sure autopay isn\u2019t on for this bill. It\u2019ll make this a lot more difficult for you if you accidentally pay this bill without the cooperation of the new owner. \n\nLet the utilities deal with any recourse with the new owner.", "replies": [{"id": "holr14r", "text": "Me and you both. I have zero faith the city will take care of this. Maybe file a lien but other than that I don\u2019t see them taking an active role.", "replies": [{"id": "holz9jg", "text": "yea, I'd make sure you don't pay the city any money. They'll have to go after you or the new owner. They'll have a better chance of getting the new owner to cough up the money so they'll hopefully leave you alone. If you pay, it doesn't sound like they'd care that you were unduly charged. I don't have any experience with liens so no opinion about going that route. \n\nsorry you have to deal with this!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "holseq7", "text": "If you disclosed the utility bills at transition the. Let them deal with it.", "replies": [], "depth": 1}, {"id": "holtmoh", "text": "Isn't escrow supposed to handle transferring utilities?", "replies": [{"id": "holvioz", "text": "No. Escrow will pay off utility liens if applicable but not transferring", "replies": [], "depth": 2}], "depth": 1}, {"id": "holujpq", "text": "Do you know if the buyer is intentionally not transferring to milk you?\n\nI've seen some poorly run property management companies failed to do many things unknowingly to the owners.", "replies": [{"id": "holvfft", "text": "We have sent a ton of correspondence. I get the feeling it\u2019s mostly incompetence but who knows. They also barely got to the closing table because they\u2019re total amateurs which reaffirms that hypothesis. But they haven\u2019t even responded to our calls and emails so who knows", "replies": [{"id": "homo7h3", "text": "What municipality, city or state is the property in?\n\nWas this a direct sale or did you list this through a broker? If a broker, I would try going through them, or whoever has the relationship and brought you the buyer.\n\nI would also get your attorney draft up a letter and send it to them via email and certified mail to the entity, all principles in the transactions, and definitely KPs if you have that info. If they have Freddie or Fannie you can add the servicer on the mail list as a notifier and insurance agent. You can try getting insurance agent from the title company and make up some excuse that your looking for a new agent. On the letter I would detail all the parties it was sent to. \n\nIf you have Gmail you can download cloudhq email tracker to verify if/when they viewed the email. \n\nSome taking points;\n-they are in breach of the PSA\n-you will be working with the utility company to get it out of your name and in turn water will be shutoff\n-depending on your city, they may shut your property down for failing to provide a necessary service (i.e. water), or sued by residents\n-for any accrued expenses you will file a cloud in title on the property (keep good records, and verify with your attorney)\n\nI personally wouldn't leave it unsettled even if your entity owns no assets and will be dissolved. You never know what recourse the municipality has. In our city, although the bill is under the entity in some cases they still require an individual's social to open or transfer service because that entity doesn't have a long enough track record.", "replies": [{"id": "honv7k5", "text": "Good thoughts for sure.  Broker is involved and I was thinking same thing of attempting to identify the servicer/lender to provide notice.  That would definitely trigger a default and get them to act quickly.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "holusjh", "text": "Small claims to new owners?", "replies": [], "depth": 1}, {"id": "holwki4", "text": "Why don't you give the city the new billing information for the buyer? And make it clear to the city you're not going to pay this bill", "replies": [], "depth": 1}, {"id": "holy4hx", "text": "Have you sent them a copy of the final closing statement that shows you\u2019re no longer the legal owner? I cannot imagine any company being allowed to continue to bill you for services when you\u2019ve provided proof that you\u2019re no longer the legal owner.", "replies": [{"id": "hom9pbh", "text": "It\u2019s not a private company. It\u2019s the city utility.", "replies": [{"id": "hookg2h", "text": "Not sure about where you live but in this county the city, who runs water, sewage and trash requires a seller/buyer to show the final closing statement (aka HUD statement) to them as proof. If you\u2019ve done this as a seller, then your billing cycle ceases at the date of transfer.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "holze7x", "text": "Hopefully you had the meters read at midnight on the closing day or whatever, then just handle it in the true up.  Wouldn't put a lot more energy into it than that.", "replies": [], "depth": 1}, {"id": "honvowr", "text": "Just send the bill to the new owner and dont pay it.  When they post disconnection notices to the tenants it'll get sorted", "replies": [], "depth": 1}, {"id": "honyg5i", "text": "Send a certified letter to the buyers lender letting them know their collateral is going to have a lien. The bills are to your dead entity so id throw the invoices in a filing cabinet and focus on other shit. Not your problem anymore.", "replies": [], "depth": 1}, {"id": "hoo6o0o", "text": "Talk to an attorney about a lawsuit for specific performance. This is a fairly unique situation.", "replies": [], "depth": 1}, {"id": "hooh4ua", "text": "Did this not run through a title company? My utilities are transferred at the closing table every time.", "replies": [], "depth": 1}]