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Dear Mr. Feichthaler:
I am an out-of-state buyer, seeking to purchase a home in Cape Coral. I have heard it is better to buy a home that has city water and sewer utilities, so I am only looking in those areas. I have found a home that was listed in Zillow, and they are saying I, as buyer, will be responsible for the remaining assessment balance. Shouldn't the seller pay these at closing?
-- Rick S.
Dear Rick,
It sounds like you have done good research on our city, which will be very helpful to you in determining the area you wish to live in. With over 120 square miles, the options are nearly endless.
In general, the city has three types of areas when it comes to water and sewer. About a third of properties have water and sewer service, with as-sessments already paid. Generally, this is in the far southern part of our city. Another third have water and sewer provided, but assessments are still owing. These are almost always paid through the tax bills on an annual basis over 20 years. Depending on when the utilities were installed, there could be a small amount remaining, or a large amount which could be over $20,000. Finally, a good part of the northern portion of our city does not yet have services, so a well and septic tank are needed. Anyone buying in these areas should be aware that water and sewer are coming, it is just a matter of time (and money).
Customarily, a buyer of a property with assessments will assume the balance of the assessments, and continue to pay those through the tax bill until completion. However, as I mention frequently, nearly everything in a real estate contract is negotiable. You may be able to negotiate with the seller for the assessments to be paid off at closing, which could be substantial. In the transactions I handle, nearly all buyers assume the balance of assessments.
Eric P. Feichthaler has lived in Cape Coral for over 33 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com, or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.