Understanding the 4 page Maine Purchase & Sale Agreement is best when breaking it down into categories. This "Closing 101" blog is all about paragraph 11 and understanding the fuel proration.
According to the Maine Purchase & Sale Agreement, paragraph 11, titled FUEL/UTILITIES/PRORATIONS: Buyer shall pay Seller at closing for all fuel in any tanks remaining on the property calculated as of the closing date or such earlier date as required to comply with lender requirements, if any. The amount owed shall be determined using the most recently available cash price of the company that last delivered the fuel.
The fuel is calculated by the Selling Agent and presented to the Closing Agent for placement on the Closing Report. This will include the #2 fuel oil, propane, cords of wood, pounds of pellets, etc. The fuel is calculated as per the contracted, taking the # of gallons/pounds/percentage of fuel (multiplied by) the cash price (=) amount owed to Seller.
Have a question about Maine Purchase & Sale Agreements? ask one of the industry pros at Cates Real Estate at info@catesre.com