Don't forget about the authorities

A few weeks ago, we received a call from a Realtor in New Jersey who was very concerned about a sale he'd closed on a Bucks County home. The Realtor — not one of our shareholder members — was working as a dual agent. Shortly after the settlement, as the buyer was attempting to switch the utility accounts over, they learned that the municipal authority required a sewer lateral inspection for a resale, which was never performed.

The Realtor and buyer scheduled an after-the-fact inspection, only to find that the lateral pipe had separated from the home — an expensive problem to fix.

The Realtor said the township officials never mentioned the authority's sewer inspection requirement. But that information is available at the top of the authority's website homepage, and in our municipal database entry for the township.

The moral of the story is to keep in mind potential requirements from municipal authorities as you prepare for settlement, and check the SRA database for a comprehensive list of resale requirements by municipality, especially if working in unfamiliar territory.