Change of flat owner and settling utility bills

A flat is an asset that often changes owners. When it is sold, utility bills have to be settled. What do you need to know about these formalities?

• Change of flat owner – formalities
• Amounts owed to the homeowners' association
• What about service charge arrears?
• Refund of advance payments from the homeowners' association

Change of flat owner – formalities

People who decide to buy a residential unit must know when the necessary charges fall due. Polish law regulates this matter. It describes when the obligation to pay rests on the old owner and when on the new one. This knowledge is essential because, as practice shows, misunderstandings often arise in this area. It should be remembered, however, that settling utility bills is the previous owner's obligation. They settle with the utility companies according to the meter readings when handing over the flat. The new occupant signs a new agreement, which will oblige them to pay charges in the future. They must, however, be aware of what the meter readings were before taking over the premises, because, at least at the very beginning, they will still have the old water or electricity meters.

Amounts owed to the homeowners' association

Paying utility bills, as we can see, is above all the previous owner's obligation, but the new owner must also be sure what the meter readings were when they took over the flat. Equally important is paying the amounts owed to the homeowners' association (wspólnota mieszkaniowa). Management costs are most often covered by regular charges, which must be paid in advance by the 10th day of each month. Their amount is set under a resolution adopted at the annual meeting. Article 548 § 1 of the Civil Code provides that the obligations pass to the new owner only at the moment the unit is sold:

Upon delivery of the item sold, the benefits and burdens connected with the item, and the risk of accidental loss or damage to the item, pass to the buyer.

Until the sale process is completed, the obligation to pay the charges for the flat rests on the original owner.

READ ALSO – THE 5 MOST COMMON MISTAKES WHEN BUYING A FLAT

What about service charge arrears?

Who is responsible for service charges (czynsz) that have not yet been paid – the new owner or the person who incurred them? It might seem that, in accordance with the previously cited Article 548 § 1 of the Civil Code, both the benefits and the obligations connected with the flat pass to the buyer, that is, the new owner of the flat. It turns out, however, that debts do not fall under this provision. Unpaid amounts are owed by a specific person, namely the debtor (the previous owner). It is the debtor who is responsible for paying them.

Refund of advance payments from the homeowners' association

A person who leaves the homeowners' association when selling their unit cannot demand a refund of the advance payments they have made. These funds were earmarked and collected for specific purposes, and anyone wanting to get the money back can count only on recovering an overpayment. They will then receive the funds that remain after the specific purpose has been carried out and its costs settled. In that case the charges are also paid by whoever is the owner of the premises at the time.

The rules on settling utility bills after a change in ownership of a flat, for example in Katowice Piotrowice, are fairly clear. If you have any doubts, you can ask the specialists at the REMAX Gold estate agency for help.