Hello,

I recently purchased a home on the 12th(all papers signed sealed, etc). The home is heated by electric and wood. A propane tank is used for the stove and water heater. The purchase agreement did not specify any particulars, yet on the 26th, the prior owner contacted the propane tank company (the company who supplies the propane and the leased tank) to have the gas reimbursed. On the 8th of the next month, I arrived home to find the propane tank disconnected (I was not given any notice by the prior owner or the propane company). I contacted the propane company and found out the owner had requested a reimbursement from the propane within the tank.
The gas company representative said is is standard practice to automatically refund the gas to the prior account. They stated quite the opposite that the home purchase agreement must state that gas transfers over to me.
Is it not true that unless otherwise specified within the purchase agreement, that ownership of anything on that property would become mine? I was without hot water and a stove for 8 days and am looking into suing the prior owner for the price of the full tank of propane and loss of comfort for not being able to shower, cook my food, do laundry, or have hot water on the premises.

Thank you for reading this. Any help would be greatly appreciated.

mr.yet

Most contract for sale of reality property covers this, re-read the contract for sale. IF nothing in the contract than after the sale the propane belongs to the new owner.

poorboytech

thank you for your quick response. I reviewed the paperwork on the purchase of the home, the only thing specifically specified in the purchase agreement was a lawnmower, a canoe and several speficications of the prior owner removing old paint from the workshop.
Should I look for anything else in the purchase agreement?

ScottGem

Generally, at the closing the purchaser reimburses the seller for any oil in the tank or similar. So the first thing to do is contact the attorney who represented you at closing to see if this was done. With the bewildering amount of paperwork being signed and checks written at a closing it wouldn't be hard to forget or overlook it.

I'm not sure, however, whether you have a case against the former owner. But you may have one against the propane company. The former owner, request for a reimbursement might not be out of line. But the propane company should not have disconnected the tank. There was no call for that. They should have been able to take a tank reading without disconnecting.

On the other hand, I'm disturbed by the timing. You closed on the 12th, did you take possession that day? Did the previous owner actually move on or before the, or after the 12th. For the previous owner to wait 2 weeks after you took possession seems a long time. I doubt if the propane company could task a reading on a daily basis. That means, he would be getting reimbursed for 2 weeks during which you owned the home.

I think you may have a cause of action against both parties, but you need to quantify this. You need to put a monetary value on the loss of services and then sue for that. Did you keep receipts for the meals you had to eat out because you couldn't cook? Or the laundry costs for going to the laundromat?

poorboytech

Thanks again for responding so quickly. All of your opinions are greatly appreciated!

Nothing was specified at all regarding reimbursement of propane. The propane was purchased by the prior owner and physcially resided on the land after puchase.
I literally took ownership on the 12th. The house was vacant for months(he acquired the house from his parents, he lives in another state). That day the prior owner called the gas company and said "ownership of the land is transferred, he will be calling in to have the propane acct transferred"

On the 26th he called again to demand his money back for the propane.

Without any notice by his realtor or the gas company, they disconnected it on the 8th of the next month. Mind you, the propane in the tank was already paid for by the prior owner so he was not being charged anything additionally. I do have my visa account for any food charges. Luckily my family lives about 20 miles away and i was able to do laundry. i think i can quantify acceptable costs to the judge if requested. Loss of comfort is another thing as well as verbal/written abuse by the prior owner that went through both realtors (he sent a nasty email with name calling etc and actually said to forward it to me..it went through his realtor, to mine, and then to me).

ScottGem

I still think you have a greater beef with the propane company. They were informed that the account was going to be transferred (did you transfer the acct?) For them to disconnect and then wait 8 days to reconnect is unconscionable. The only thing the previous owner did wrong was to try and get reimbursment 2 weeks after he turned over the property. You could have had the tank refilled at that point and he would be getting reimbursement for gas you paid for. I dobut if he requested disconnection, that was a mistake made by the propane provider.

poorboytech

I transferred the account the day after they disconnected it(had to wait after the weekend the company was not open). Which was Nov 8th. Gas rehooked up on the 16th. Thats the earliest time the gas company said they could reconnect it.

I would think that some stipulation should have been made by the prior owner that purchased propane would be reimbursed backed to him and that I would have to refill the tank myself in some form or fashion whether its his propane company or one I choose...lets say hypothetically that this was the case..I should, in all fairness be given ample time to find another propvider and also have the current tank removed by his contracted propane company. No time or information was provided by the prior owner

ScottGem

Ahh, now the fly in the ointment comes out. You took possession on the 12th and did not make any effort to transfer the account until they disconnected you? Your case just got a WHOLE lot weaker.

Lets look at this from the Propane company's point of view. Former owner contacts them on the 26th and asks; "why haven't I gotten my reimbursement yet? I called you on the 12th and told you the land had been transferred." Now, another 2 weeks have passed and the propane company hasn't gotten any request to transfer the account. So maybe they figure you aren't going to transfer the account and disconnect.

So I'm no longer sure you have much of a case here. I would send the propane company an estimate of your expenses and see if they will pay. But if they don't pay, I would let it drop.

poorboytech

In some aspect I disagree. The propane that I would conclude is my property should not have been touched until I transfer it. No specific instructions in the purchase agreement gave the prior owner the right to take the propane out of the tank beause any said item on that property became mine the day we finished writing up the purchase agreement unless otherwise stipulated. Hence the propane was owned by me, not the prior owner, and he has no basis for requesting money back on something he does not own.

Also, there is no stipulation anywhere that I know of that says I must transfer an account within a certain amount of time. The prior owner was not charged anything during the time that I took ownershi of the property and the day I transferred the account else i would gladly reimburse that to the prior owner but that is not the case.

Propane isnt like electricity where it is stored off the actual property itself, so I would contend that the ownership of anything purchased for that property became mine. There was wood for the fireplace on the property for heating, that became mine too, it is an implement of a utility..just like he cannot request reimbursement of the wood as a utility resource....am i far off?

ScottGem

Not necessarily. I agree, he should have put reimbursement for the propane into the contract so he was paid at closing. That's how I handled the oil in the tank when I have sold and purchased homes. But maybe he didn't know better and figured it was understood. I'm not saying he was right in asking for reimbursement, but I don't see it as an actionable offense.

I'm not sure how propane companies work, but do you own the tank? Its possible they own the tank (you mentioned its removal). Generally, its understood that utilties should be transferred immediately. Almost a month is a long time.

So I really don't see you having a cause of action against either party.