Why Am I Paying a Sewage Capacity Charge? What You Need to Know!
Twice a year a lot of home owners open up their mail and are surprised by this pesky bill called the King County Sewage Treatment Capacity Charge. As a neighbor and Realtor I’m asked about the reason for this bill. Many homeowners just pay it believing that it’s merely a utility bill (such as your water or electric bill). Well, it’s not. This charge is a lien recorded in title. The Sewage Capacity Charge reflects the cost of your home being connected to the sewer system. King County provides wholesale wastewater treatment services to 17 cities and 17 local sewer utilities in King, Snohomish and Pierce counties. The bi-annual (or quarterly) bill is an amorotized payment based on a 15 year payment plan. Most homeowners opt for the payments rather than pay the whole amount up-front (which can be a large sum).
Now here’s where the capacity charge gets a little complicated: Let’s say you want to sell your home. And let’s say your property is subject to the capacity charge. Please pay special attention to what I’m about to say: IN ORDER TO PASS THIS CHARGE ONTO THE NEW OWNER, YOU MUST FIRST, DISCLOSE THE CAPACITY CHARGE ON THE SELLER’S DISCLOSURE STATEMENT (SEE ITEM “C”ABOVE) AND YOU MUST ALSO NETOTIATE THIS WITH THE BUYER IN THE PURCHASE AND SALE CONTRACT. If you don’t, you’re going to pay off the remaining balance at closing which can be a substantial amount of money. I have actually heard of colleagues whose sales have fallen apart because of the non-disclosure/negotiation of the capacity charge. If you do decide to put your house on the market, make sure you consult with your agent regarding the capacity charge.
So, I’m taking my own capacity bill to the mail box today. I wish I had my friend’s cat to do this chore for me!!!
August 18th, 2008 at 3:02 pm
Your post came to my attention and I wanted to correct a couple of items about the King County capacity charge. The capacity charge is NOT a recorded lien against the property unless King County files a lien due to delinquencies. It will not pop up automatically on title search, unless the lien has been filed and recorded. It’s true that the seller is responsible for disclosing the capacity charge and should do so by completing the Disclosure Form 17. The standard purchase & sale agreement also contains information about the charge. Most escrow agencies are aware of it and send King County a request before closing, making the transition from seller to buyer smooth. However if this step is missed and the seller fails to disclose, ramifications to the buyer can be significant, in that the capacity charge stays with the property and is the responsibility of the current owner. Not all properties pay this charge or have already paid it off, so it’s important to ask the seller if there is a capacity charge on a property you may be interested in buying.
Eunice Verstegen
Program Manager
King County Capacity Charge Program