Jul 31, 2012

Tip 30-2012: Propane & Fuel Oil Proration

This tip is always a good reminder. Sometimes during the summer months it's easy for the parties to the closing to forget about the propane or fuel oil purchase until the last minute, which may cause a problem at the closing table. A good practice is to make sure that everyone involved with the closing is aware that there is propane or fuel oil which needs to be prorated. This information should be provided at the very beginning of the contract negotiations and passed on to all parties, including the settlement attorneys involved in the transactions.

As the measurement of the propane or fuel oil does not occur until just prior to closing, it is a good idea to keep reminding everyone that the propane bill will be coming. With today's fuel prices, a full tank can create a very large payment that the Purchasers will have to pay at closing. No one likes that kind of surprise.

Please contact me if you have questions.

Bill Tucker
Tucker Griffin Barnes
Charlottesville, VA (434-973-7474)

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