The water company’s own rules, and state law, allows the water company to put a lien on a property if the property is behind in its payments. Apparently the water company is now putting illegal liens on everyone’s properties, even if they pay on time. The following is from a property owner in the area.
Just wanted to raise something to your attention, in case it can help you and your case.
We’re refinancing our house and the title company called with a strange finding as they were about to fund the transaction / close title this morning.
They noticed the house title had a lien on it from the water company and advised that I may be delinquent on my bills, that’s the only time they see a utility company put a lien on a property. A bit of research confirmed this practice being dependent on unpaid / delinquent bills. I’ve always paid the water company on time.
I called the water company when they opened and quickly escalated the conversation when the first person I talked to didn’t have a good explanation. The next more senior person explained they have a lien on every single house, and charge 2 months of water payments in advance with any sale or refinance
I asked about the $60 fee they added, and they explained it’s for all the paperwork required (which is ridiculous, they just send the bill to the title company for the advance water payments and the fee!).This feels sketchy to me, I’m not even sure if it’s legal. If it’s not legal – I would be inclined to pursue legal action.
Update
Sept. 2021. In testimony in our court case against the company, the general manager admitted that they do, in fact, put a lien on all properties in the water district.