If you want to sell a house with an unpaid PGW bill in Philadelphia, you might have many questions before the sale. For example, will it show up during the title search? Can the unpaid balance affect closing? Do you have to pay it before the closing? And most importantly, can you actually sell it with that debt or not?
If you need answers to these questions, this guide is worth reading. We are going to explain each and everything you need to know before selling a house with an unpaid gas bill. So, make sure you read it till the end to make the most of it.
Quick Summary
Yes, you can sell a house with an unpaid PGW in Philadelphia. However, you have to resolve the PGW lien during the title process. You can pay the balance beforehand, use sale proceeds, or dispute an incorrect claim. You may also choose an as-is cash sale to avoid the burden of debt.
Can You Sell a Philadelphia House With an Unpaid PGW Gas Bill?
The short answer to this question is yes. Philadelphia does not block a sale because of an unpaid bill. That does not mean an unpaid PGW balance can be ignored during the sale. It might complicate a sale, but homeowners still have several ways to move forward.
However, the exact path to sale varies from account to account and depends on several factors. These factors include:
- Whether a lien appears in the title records
- Who incurred the charges?
- How much equity is available
Pennsylvania law gives Philadelphia Gas Works unusual collection rights because PGW is municipally owned. So it differs from an ordinary private utility.
In a 2021 decision, the Pennsylvania Supreme Court has clearly explained that charges for gas supplied by Philadelphia Gas Works (PGW) can become liens against the property receiving the service under Pennsylvania’s Municipal Claims and Tax Lien Law.
So, as a homeowner, you should not ignore this side of the PGW lien. Once it attaches to your property, the issue can follow the real estate into the sale process.
How an Unpaid Gas Bill Affects a Home Sale
It all depends on the status of the account. If your property has an overdue bill that has never turned into a recorded claim, it creates an entirely different situation from a docketed lien that already appears in court records. Here is how it may affect the home sale in different ways:
It Can Appear During the Title Search
One of the most common ways an unpaid gas bill creates a hurdle in the sale is by appearing during the title search. Whenever you get a buyer, the title company checks the property records to search for:
- Mortgages
- Court judgments
- Tax debts
- Utility claims
- Other liens connected with the address
The City of Philadelphia advises property buyers and sellers to review lien records because outstanding debts and claims can affect property ownership and transfer.
A docketed Philadelphia Gas Works lien may show up at this stage even if the account has been inactive for some time.
The Lien May Need to be Cleared Before the Sale Can Close
Title companies usually need an acceptable way to clear valid property claims before they can insure the buyer’s ownership.
Let’s say the search finds a $3,800 PGW claim. In such a case, the title company may obtain a fresh payoff figure and add it to the settlement statement. After that, the amount comes out of the seller’s funds and goes directly toward satisfying the claim once the sale closes.
Quick Tip: The amount on an old gas bill may not be the same figure required to clear the lien. You should work from a current payoff amount.
It Can Reduce the Seller’s Proceeds
Another way an unpaid PGW lien affects a home sale is by reducing the seller’s proceeds. That means if you have to pay a debt out of the closing funds, you take home less money.
For example, let’s suppose that your expected proceeds are $45,000 after the mortgage and ordinary sale costs. But if there is a valid $6,000 PGW payoff attached to your property, it can bring that amount down to roughly $39,000 before any other adjustments.
It May Delay Closing
One of the biggest impacts of an unpaid gas bill is an unnecessary delay in closing. A delinquent gas bill title issue in Philadelphia can slow things down when nobody has a clear payoff figure or when the owner disputes the debt.
Tenant-related accounts can complicate the issue. Maybe a former tenant opened the account, or the billing period ran past the tenant’s move-out date. Similarly, the landlord may have protection through a PGW program and believes the claim should not apply.
Whatever the reason, these issues take time to sort out, which ultimately delays the closing process.
An Unresolved PGW Claim Can Hold Up Financing or Title
Buyers generally expect to receive title without unresolved claims hanging over the property.
Their lender and title insurer will usually have the same concerns. If everyone knows about a valid lien and there is a clear plan to pay it at settlement, the transaction may still move forward normally.
However, if the debt is unclear or disputed, the property may lack the attention of both buyers and lenders.
Your Options for Selling a Philadelphia House With PGW Debt
Despite all the above situations, you may still find a practical way to sell your house with an unpaid PGW bill in Philadelphia. But before that, you must be clear about what is actually owed. Once you know that, you can follow any of these strategies to proceed with the sales process depending on your situation.
Pay the PGW Balance Before Listing or Closing
The simplest option to speed up the sales process is to pay the PGW balance. If you have the funds and the balance is correct, you should do it even before listing your house. By doing so, you actually clean up the title process.
However, make sure that you confirm the current amount first. If PGW has already docketed a lien, find out what documentation is required to show that the claim has been satisfied.
Arrange for the Balance or Valid Lien to Be Paid From Closing Proceeds
If you do not have money for the PGW bill before the closing, there is nothing to worry about. You have the other option. Yes, we are talking about paying the bill from the closing proceeds.
If there is enough equity in the property, the title company may be able to place the PGW payoff on the settlement statement. This way, the debt gets paid from the sale proceeds, and you receive the remaining amount.
However, your take-home money is usually less in this process compared to a standard sale where you already pay the bill from your pocket.
Dispute an Incorrect Bill or Lien With PGW
Sometimes, the system may be showing wrong numbers on your property’s account. If you think the figures are not correct, you should not overlook it at all. Instead, check them before paying, especially if your previous tenant has created that unpaid balance.
According to PGW’s Residential Landlord Cooperation Program, qualifying residential property owners who register eligible rental properties and stay compliant can receive protection from liens for unpaid tenant bills during the covered period.
So, if you want the debt to be corrected before the sale, make sure you send PGW a written dispute with copies of your records. But remember that the disputes take time, so it is better if you start it before you list the property.
Sell the Property As-Is to a Professional Home Buyer
One more option homeowners in Philadelphia can use is selling the property as-is to a professional cash buyer. This is particularly helpful when the PGW balance is not the only expense appearing before the sale.
Sometimes, the house may also need major repairs. For example, there may be
- Old taxes
- A difficult tenant
- Inherited-property paperwork
- Other issues
In such a case, it is better to consider a cash offer to avoid the stress of all the debts and paperwork.
With We Buy Any Philly Home, homeowners can provide details about the property along with photos and receive a no-obligation all-cash offer. The house can stay in its current condition. There is no need to repair, stage, or clean it before requesting an offer.
Note: Any title claims still need proper resolution before funds can be released. A cash sale does, however, remove mortgage underwriting and the risk of a buyer’s loan falling through.
Steps to Take Before Selling a Philadelphia Property With an Unpaid PGW Bill
Homeowners should take the following steps before listing a house with an unpaid PGW to sell it without any disputes and delays:
- Confirm Whether the Balance Is Yours or a Current or Former Tenant’s
First of all, go back to your PGW account history and check the name on the account. Further, look at the service address, the billing period, and the dates any tenant moved in or out. If the house was rented, pull out your rental license and any Landlord Cooperation Program records that cover the same period.
- Check Whether a PGW Lien Has Been Docketed Against the Property
After that, search the Philadelphia civil docket at courts.phila.gov, or order a title search to see every recorded claim. Remember, an unpaid bill and a filed lien are two different things. Only a docketed lien appears in the public records.
- Request the Current Payoff Amount
Then, you need to request the current payoff amount. So, if the search finds a claim, get an up-to-date payoff. Avoid preparing your sale calculations around an old statement.
- Dispute Any Balance or Lien You Believe Is Incorrect
If you find something wrong with the current PGW balance, gather your records and send a written dispute to PGW. You may need old bills, payment receipts, leases, move-in and move-out dates, and other necessary documents for this purpose.
- Compare the Net Proceeds Under Your Available Selling Options
Finally, compare your actual take-home money based on different available selling options and choose the one that best fits your case. To make the right choice, you should look at the PGW payoff, other lenders, agent commissions, repairs, closing charges, or other carrying costs.
The Final Words
In short, an unpaid PGW balance does not mean you cannot sell your house. Instead, you can definitely sell it, but you have to make sure that any debts are cleared before the closing. Otherwise, your sales process may include unnecessary delays and concerns. But if you do not have enough money to pay the unpaid gas bill, you can also arrange the payment during the title settlement.
And if you want to make the process even more stress-free, we at We Buy Any Philly Home can help you get a fair cash offer for your Philadelphia property, even if there is an unpaid PGW balance to sort out. If you are interested in this option, share your property details and photos with us and let our team review the home and provide an offer based on its current condition.
FAQs
Do I have to pay the PGW bill before I can sell?
You may not need to pay it out of pocket before the sale. Instead, you can settle it during the title transfer process. When the property has enough equity, a valid PGW payoff may be deducted from your proceeds at closing.
Can a buyer take over my PGW lien?
A buyer will usually expect valid PGW claims affecting the property to be addressed through the closing process rather than simply left unresolved. Ask the title company how a specific PGW claim must be handled before title can be insured.
Does a PGW lien go away after a sheriff sale or foreclosure?
Do not assume a PGW claim disappears automatically after foreclosure or a sheriff sale. The result can depend on the type and priority of the claim and the court process involved. Review the specific docket with a title professional or attorney before relying on the sale to clear it.
How do I find out if there is a PGW lien on my house?
You can easily check it by searching Philadelphia’s civil court dockets or order a title search. Once one appears, your next step should be to request the current payoff amount or gather records if you believe the claim is wrong.