At Rover Realty, we believe that supporting our community goes beyond real estate. Each month, we’re proud to give back to organizations making a meaningful difference, and this month, we’re honored to support SauerPower Veterans Empowerment Alliance (SPVEA) .
When should a seller turn off utilities when selling a home in Arizona? And when should a buyer have utilities turned on? It sounds like a small closing detail, but getting the timing wrong can create a big problem. Our general recommendation is simple: Sellers: Schedule utilities to turn off the day AFTER closing. Buyers: Schedule utilities to begin in your name ON closing day. Here's why. Sellers: Don't Schedule Utilities to Shut Off on Closing Day Under the standard Arizona residential purchase contract, the seller is generally required to keep the property's utilities on through the close of escrow. That's important because the buyer may need the utilities for the final walk-through and to verify that agreed-upon repairs have been completed. For that reason, we generally recommend that our sellers schedule their utilities to be turned off the day after the scheduled close of escrow. For example: Closing Tuesday? Schedule shutoff for Wednesday. Why not Tuesday? Because telling the utility company to shut off service "on Tuesday" doesn't necessarily mean they will wait until the transaction closes. They could disconnect service early in the day. Now imagine the buyer arrives for the final walk-through and there is no electricity. They can't properly check the lights, appliances, air conditioning or repairs involving electrical systems. That can create an unnecessary problem right before closing. The Extra Day Gives Sellers a Safety Net Real estate closings don't always happen exactly as planned. A lender could need another document. Funding could be delayed. A last-minute title issue could arise. Recording could be pushed into the following business day. Scheduling utilities to end the day after closing gives the seller a little breathing room. If we learn that closing isn't going to happen as scheduled, there may still be time to contact the utility providers and extend service another day. That's much easier than discovering the utilities have already been disconnected and trying to have them turned back on—possibly with additional fees. But There's an Important Distinction Scheduling the shutoff for the following day is meant to protect the seller before closing . It is not intended to provide utility service to the buyer after the property has closed. Once the transaction closes, buyers should have established their own utility accounts. A seller certainly doesn't want to remain financially responsible for a buyer's utility usage after closing. Imagine a buyer immediately draining and refilling a swimming pool while the water is still being billed to the former owner. That could potentially mean hundreds of dollars in water charges. That's why both sides need to coordinate their utility dates properly. Buyers: Schedule Utilities to Start on Closing Day For buyers, we recommend scheduling utilities to begin in your name on the scheduled closing date. Don't wait until closing day to start making phone calls. Contact the utility providers ahead of time and arrange for the account to transfer or begin on your closing date. This is especially important if you plan to move into the home immediately. You don't want to get your keys at 4:00 in the afternoon and discover you don't have electricity, water or gas. Arizona in August is a particularly bad time to learn that lesson. Watch Out for Fridays, Weekends and Four-Day Workweeks Timing becomes even more important with some Arizona municipalities and utility providers. Some government offices and municipal departments operate on four-day workweeks or have limited Friday availability. Let's say your home closes on a Thursday. You get busy and forget to arrange for water service. Friday morning you try to establish your new account, only to discover that the department is closed or has limited availability. Your request may not even be reviewed until Monday—and that doesn't necessarily mean your service will begin Monday. This is why we encourage buyers to start working on their utility transfers several business days before closing. Special Instructions for City of Phoenix Buyers If you're purchasing a home in the City of Phoenix, pay particular attention to your City Services account , which includes water and related municipal services. Phoenix requires additional documentation when a homebuyer establishes service. The good news is that you don't necessarily have to wait until after closing to submit the request. The City currently allows a buyer who is closing soon to provide a PDF copy of the estimated OR final Settlement Statement from the title company as evidence of the purchase. That means this is something you can work on before closing. Ask Your Title Company for the Document If you're buying in Phoenix, ask your title or escrow company for an estimated Settlement Statement before closing. Once you receive it, you can use it as part of your City Services start-service request rather than waiting until you have the final statement after closing. The City currently advises allowing at least three business days for processing, excluding weekends and City holidays. That makes planning ahead especially important for a Thursday or Friday closing. Don't wait until you receive your keys to start figuring this out. Utility requirements and processing times can change, so buyers should always verify the current requirements directly with the City of Phoenix before closing. Buyers: Be Prepared for Deposits and New-Service Fees Another surprise for some buyers is the upfront cost of establishing utility service. Depending on the provider and your account history, you may be required to pay a deposit, connection charge or other new-service fee. Some deposits can be substantial and may not be refunded or credited until you've established a history of on-time payments, sometimes for a year or more. If you're moving to a new city or using utility providers you've never used before, ask about these charges ahead of time. Closing already comes with enough expenses. Nobody enjoys discovering another few hundred dollars in deposits after they've signed their closing documents. Sellers: Confirm Your Accounts Are Actually Closed Sellers have one more important job after closing. Confirm that your utility accounts have been closed and that any automatic payments have been stopped. Don't assume everything happened correctly just because you submitted a shutoff request. This can become particularly important when a buyer doesn't immediately establish service in their own name. This sometimes happens with second homes or properties that won't be occupied right away. If the utility provider continues billing the former owner's account, you don't want to discover weeks later that you've been paying for utilities at a home you no longer own. After closing, verify that: Electricity service has ended in your name. Water service has ended in your name. Gas service has ended in your name, if applicable. Trash or other municipal services have been stopped or transferred when applicable. Automatic payments have been canceled. The utility providers have your forwarding address for final bills or refunds. Keep copies of your final statements as well. Our Simple Rule for Arizona Closings Here's the easiest way to remember it: SELLERS: Schedule utilities to turn off the day after closing. BUYERS: Schedule utilities to begin on closing day. BOTH: Handle the requests ahead of time. Don't wait until closing day. And if you're buying in the City of Phoenix, get your estimated Settlement Statement from title and submit your City Services request early enough to allow for the City's processing time. A five-minute utility phone call made early can prevent a much bigger headache on closing day. Frequently Asked Questions When should a seller turn off utilities when selling a home in Arizona? We generally recommend scheduling utilities to be disconnected the day after the scheduled close of escrow . This helps ensure the utilities remain available through closing as required by the standard Arizona contract and provides a small cushion if closing is unexpectedly delayed. Why shouldn't I shut my utilities off on closing day? The utility provider could disconnect service early in the day, before the buyer completes a final walk-through or before the transaction officially closes. When should an Arizona buyer put utilities in their name? We generally recommend scheduling service to begin on the scheduled closing date . Make the arrangements several business days ahead of time rather than waiting until closing day. What does a City of Phoenix buyer need to start water service? The City of Phoenix currently allows a buyer who is closing soon to provide an estimated or final Settlement Statement from the title company as evidence of the purchase when establishing City Services. Buyers should request the estimated statement from their title company before closing and verify the City's current documentation requirements. How far in advance should I contact the City of Phoenix? The City currently recommends allowing at least three business days for processing a start-service request, excluding weekends and City holidays. Give yourself additional time when possible, especially around weekends and holidays. What happens if my closing is delayed? Contact the utility providers immediately. Sellers may need to extend their service through the new closing date, while buyers may need to adjust the start date for their accounts. Should a seller leave utilities in their name for a few days after closing? No. The recommendation to schedule shutoff for the day after closing is intended to protect against an early shutoff before the transaction closes , not to provide utilities for the buyer after closing. Buyers should establish service in their own names effective on the closing date. Should sellers cancel automatic utility payments after selling? Yes. Once the transaction has closed, verify that each account has been closed and review your automatic-payment settings. Keep your final statements in case there is a billing issue later. A Little Planning Goes a Long Way Utilities aren't the most exciting part of buying or selling a house, but they are one of those details you definitely notice when someone gets them wrong. For our clients, we help keep track of these little closing details because buying or selling a home already comes with enough moving pieces. Nobody wants their first memory in their new Arizona home to be sitting in the dark wondering when the air conditioner is coming back on. Contract Disclaimer: This information is intended for general educational purposes and is based on common provisions and practices involving Arizona residential real estate transactions. Contract terms, utility requirements and provider policies can vary and may change. Parties may also negotiate different contract provisions. Always review your specific signed agreement, verify current requirements directly with your utility providers, and consult your REALTOR® or an Arizona real estate attorney regarding questions about your contractual obligations.
"How do I know the seller actually completed the repairs they agreed to?" It's one of the most common questions buyers ask after the inspection period, and it's a good one. Many buyers assume their REALTOR® will inspect the repairs or that a stack of receipts guarantees everything was done correctly. In reality, the Arizona purchase contract lays out a clear process that explains what the seller is responsible for, what the buyer is responsible for, and how everyone can move toward closing with confidence. Here's how the process typically works in Arizona. Step 1: The Seller Completes the Repairs Unless the purchase contract or the BINSR (Buyer's Inspection Notice and Seller's Response) states otherwise, the seller must complete all agreed-upon repairs at least three (3) days before the Close of Escrow. This gives the buyer time to verify the repairs before becoming the new owner. Step 2: The Seller Provides Paid Receipts If the seller hired contractors or vendors to complete the repairs, they are required under the standard Arizona REALTORS® Residential Resale Purchase Contract to provide paid receipts for that work, unless the parties have agreed otherwise. Notice the important word: paid . A paid receipt helps document that the contractor or vendor has been compensated and provides valuable records of who performed the work, when it was completed, and what was repaired. It can also help reduce the likelihood of payment disputes after closing. Ideally, the receipts should include: The company that performed the work. The date the repairs were completed. A description of the work performed. Any warranty information, if applicable. Step 3: Can the Seller Do the Repairs Themselves? Yes. Many buyers are surprised to learn that Arizona's standard purchase contract allows sellers to complete repairs themselves unless the repair agreement specifically requires a licensed contractor or another qualified professional. However, there is an important requirement. The repairs must be completed in a workmanlike manner and to industry standards. That means the repair should be properly completed—not simply covered up or temporarily patched. What About Arizona's Handyman Law? Arizona also has a handyman exemption that generally allows certain work valued at up to $3,000 to be performed without a contractor's license, subject to Arizona law and the requirements of the Arizona Registrar of Contractors. Regardless of who performs the work, the seller is still responsible for ensuring the repairs meet the standards required under the purchase contract. Step 4: The Buyer Verifies the Repairs Once the seller notifies the buyer that repairs have been completed and provides any required documentation, the responsibility shifts to the buyer. The buyer has two options: Personally inspect the repairs. Hire their home inspector or another qualified professional to perform a re-insspection. For significant repairs involving roofing, electrical, plumbing, HVAC systems, foundation concerns, or other major components, many buyers choose to have their inspector return before closing to verify the repairs were completed. That extra inspection can provide tremendous peace of mind. Don't Skip the Final Walk-Through Before closing, buyers typically complete a final walk-through of the property. This isn't another full home inspection. Instead, it's an opportunity to confirm: The agreed-upon repairs appear complete. No new damage has occurred. The home is in substantially the same condition as when the purchase contract was accepted. Any agreed-upon personal property remains with the home. If something doesn't seem right, it's almost always easier to address it before closing than afterward. What Is My REALTOR®'s Role? Another common misconception is that your REALTOR® is responsible for verifying that repairs were completed correctly. While your REALTOR® plays an important role in coordinating the repair process, they are not licensed home inspectors, contractors, electricians, plumbers, or engineers. They cannot certify that repairs were completed properly or that the workmanship meets industry standards. Your REALTOR® can: Help negotiate repair requests. Track contractual deadlines. Obtain receipts and documentation from the seller. Coordinate access for inspectors and contractors. Recommend that you schedule a re-inspection when appropriate. Help address concerns before closing. However, the buyer is ultimately responsible for deciding whether to inspect the repairs personally or hire qualified professionals to verify the work before closing. Think of your REALTOR® as your guide and advocate throughout the transaction—not the person performing or certifying the repairs. The Bottom Line Arizona's repair process is designed to clearly define each party's responsibilities. The seller completes the agreed-upon repairs and provides the required documentation. The buyer then has the opportunity—and responsibility—to verify those repairs before becoming the new owner. Taking the time to review receipts, ask questions, schedule a re-inspection when appropriate, and complete a careful final walk-through can help prevent costly surprises after closing. Buying a home is one of the biggest investments you'll ever make. A little extra due diligence before closing can provide peace of mind for years to come. Frequently Asked Questions Can I require the seller to use a licensed contractor? Yes. If that's important to you, it should be specifically negotiated and written into the BINSR repair agreement. Otherwise, the seller may complete the repairs themselves as long as they are performed in a workmanlike manner and meet industry standards. Do I have to hire another inspection? No. Buyers are not required to hire a re-inspection, but it is often recommended for major repairs or when specialized work was performed. Can I delay closing if the repairs aren't completed? Possibly. If agreed-upon repairs have not been completed as required under the purchase contract, the parties may negotiate an extension, a credit, an escrow holdback (if permitted and agreed upon), or another solution. Every situation is unique, so work closely with your REALTOR® before closing. What if I discover after closing that a repair wasn't completed correctly? That depends on the circumstances. If a repair was agreed upon but was not completed or was performed improperly, there may be contractual or legal remedies available. Document your concerns, notify your REALTOR® promptly, and seek legal advice when appropriate. What if the seller says they fixed the problem, but I still think there's an issue? Don't guess. Before closing, you have the opportunity to inspect the repairs yourself or hire your home inspector or another qualified professional to verify the work. If concerns remain, it's best to resolve them before closing whenever possible. Can the seller give me a credit instead of making the repairs? Yes, if both the buyer and seller agree. In some situations, the parties may negotiate a seller credit instead of requiring repairs to be completed before closing. This allows the buyer to hire their own contractor after taking ownership. What if the repair is something I can't easily verify during the final walk-through? Some repairs—such as roofing, plumbing inside walls, electrical work, HVAC components, or foundation repairs—may require specialized knowledge. In those cases, hiring your home inspector or another qualified professional to perform a re-inspection before closing is often a wise investment. Important Disclaimer This article is intended to explain how the current Arizona REALTORS® Residential Resale Purchase Contract generally handles repair requests. Real estate contracts can be negotiated, and buyers and sellers may agree to terms that differ from the standard contract. This article is provided for educational purposes only and should not be considered legal advice. Always refer to the specific language in your signed purchase contract and consult your REALTOR® or attorney if you have questions about your contractual rights or obligations.
