Here’s the problem, and why the law was passed:
As a homeowner, if you hooked up to sewer or water service, they would have incurred fees. Most of those fees are financed over 30 year terms and are due at the beginning of the year. These fees are a debt to the house, not a debt to the homeowner. For example, it's $30,000 to hook up to city water, $1000 is due every year for the next 30 years.
When that homeowner would sell their home, many forget about that fee, and the new buyer would get that bill and would definitely be upset by the extra costs, and may not be able to afford them.
The law says that the seller NEEDS to disclose the existence of these fees. If they don’t, the seller is required to pay the fee, or pay the fees in full. If the buyers catches it before the contract goes to closing, the buyer is allowed to back out of the contract.
As a seller, the more you disclose the better. Some of my buyers accept the fee because they want the added benefit of public water/sewer. Some sellers pay the remainder of the fee with their closing funds. As long as it’s disclosed and the discussion is had between both parties, then everyone can be happy with the transaction.
If you have any questions about this or any other regulation, please feel free to email me or give me a call.