Utility account transfer
A utility account transfer is closing out the seller’s electricity, gas, water, phone, internet and waste accounts and opening equivalents in the buyer’s name, timed to the closing date so a location is never left without service or double-billed. It is a small task with an outsized ability to derail the first day of ownership.
Utility providers generally will not simply rename an existing account to a new owner. They close the seller’s account and open a new one for the buyer, usually requiring a deposit and a credit check as if the buyer were any other new customer, regardless of how long the business has operated at the location.
What typically needs handling
- Electricity, gas and water accounts at each business location
- Phone and internet, including any lines tied to a point-of-sale or alarm system
- Waste and recycling collection contracts
- Any prorated final bill owed by the seller as of the closing date
Why this needs a specific closing-day owner
A gap between the seller’s account closing and the buyer’s account opening can mean a location without power or phone service on its first day under new ownership. Utility transfers should be assigned to a specific person, with applications submitted well ahead of closing, rather than left as a general item on the checklist that nobody actually owns.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canada Revenue AgencyGovernmentSelling a business
- 02Treadstone LawLegal commentaryHow Money Actually Moves on Closing Day in an Ontario Business Sale
- 03Business Development Bank of CanadaIndustryHow to sell your business
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