How are utilities and rates handled in a conveyance?

The Adjustments general condition of a contract of sale of real estate reads as follows:

• The periodic outgoings and rent and other income is apportioned on the basis that the vendor is liable for the periodic outgoings and entitled to the rent and other income up to and including the day of settlement.

Council and water rates, land tax (that has been assessed on a single holding basis) and owners corporation fees are periodic outgoings, all of these charges are apportioned between the vendor and purchaser in the Statement of Adjustments.

Once-off council levies (e.g. road construction fees) and owner corporation special levies are not periodic outgoings.  These charges are not apportionable, they are payable in full by the purchaser if they were struck on or after the Day of Sale and by the vendor otherwise.

Utilities such as gas, electricity and internet are private contracts with the occupier, these are not charges on the land or periodic outgoings, and they are not apportioned between the vendor and purchaser.

For more information about adjustment of rates, please contact Glenferrie Conveyancing in Northcote on 03 9815 2351.