BIC TIP #1114: Utilities Off? That Is a Seller Problem Now
Under the updated North Carolina Offer to Purchase and Contract, vacant properties come with a clear expectation: if utilities are off, it is the seller’s responsibility to have them turned on unless the parties agree otherwise in writing. This is not a courtesy item or a “we will see if we get to it” task. Inspections, appraisals, and final walk-throughs all require active utilities. When utilities remain off, inspectors cannot complete their work, appraisers may suspend or condition reports, and closings can be delayed or derailed entirely.
From a compliance and risk perspective, this matters. A seller’s failure to restore utilities when required can rise to the level of a contract breach. That exposes the seller to potential termination rights, disputes over delays, and unnecessary legal friction. Brokers should be proactive at listing and during the due diligence period by confirming utility status early and documenting any alternative agreement if the parties intend to handle utilities differently.
This update is simple but powerful: vacant does not mean powerless. Utilities are part of delivering the property in the condition required by the contract. If it is not possible then a separate agreement should be drafted to alter this provision of the contract.
Notorious BIC Tip:
Utilities off equals transactions stalled. Handle it early, put it in writing if you change it, and save everyone a headache
