Selling your Home? Who Pays the Council Rates and Water Bill?
When selling your home, Buyers and Sellers often question who pays the council rates and the water bill. Solicitors will ensure adjustments are made at settlement so the council rates and water bills are paid by the appropriate party.
When you sell your property you are required to pay council rates and levies for the period you are the owner of that property. The settlement date for your sale will normally fall due during a particular rate period. For example, the Council Rate Notice may be for the period 1 July – 30 September and the property is due to settle in August.
If this is the case, you are only required to pay the rates for the period you are the owner. The Buyer is then required to pay the rates for the remaining period for which they are the owner. The amount that each party is to pay is calculated by your solicitor and adjustments are made at settlement to ensure each party only pays the proportion they are required to pay.
Adjustments for water bills are calculated in a slightly different manner to the council rates when selling your home. As the Seller, you are required to pay for all the water used up to the settlement date. A special water meter reading is provided prior to settlement to confirm the current water usage for the property. From that search, your solicitors will ensure that an adjustment is made at settlement so that the seller pays for the current water usage.
There is also an adjustment made for the water and sewerage access fee. This is a fixed charge from your utility provider that contributes to the costs for collection, treatment, and disposal of water and sewerage from your property. This fee is adjusted in the same manner as the council rates and you are only required to pay the water and sewerage access fee for the period you are in the property.
If you have any questions about how council rates and water are adjusted or if you would like to discuss the process of selling your home with us, please contact Aylward Game Solicitors today on 1800 217 217.