Short answer
They can. Under RSA 38:22, charges from a town- or city-owned water or wastewater utility create a lien on the property served, and town sewer charges use the same lien rules under RSA 149-I:11. The town's own records count as notice to later buyers. That's why a final meter reading and payoff of the seller's bill should happen at or before closing, so you don't take on someone else's balance.
How does the lien work?
RSA 38:22 says charges for services from a municipally owned water or wastewater utility create a lien on the real estate where the services are provided. The town can enforce it in different ways:
- Through the tax collector. The town can commit unpaid bills to the tax collector, who then has the same remedies as for unpaid property taxes. The lien lasts 18 months from the last unpaid bill.
- By billing directly and suing. The lien lasts 18 months from the last unpaid bill, and the town can extend it to six years by recording a notice of lien at the registry of deeds.
The statute says the utility's records are enough notice to enforce the lien against later buyers. In other words, a lien doesn't have to be recorded at the registry of deeds to affect a new owner.
Do sewer bills work the same way?
Yes. RSA 149-I:11 gives towns the same liens and collection procedures for sewer charges as RSA 38:22, and says interest on overdue sewer charges follows the property tax interest statute. See what happens when NH property taxes are paid late.
What if the home was rented?
When someone other than the owner, such as a tenant, received the service, RSA 38:22 says the lien binds the owner only for charges the owner was told about within 120 days after they became past due. Sending the owner copies of the bills at the same time counts as notice. If you're buying a rented home, it's still worth asking whether the utility account is in the owner's or tenant's name. See buying a NH home with tenants.
How do I make sure the seller's bill gets paid?
- Ask whether the home is on town water and sewer, a private water company, or a well and septic system.
- Make sure the closing agent or seller requests a final meter reading close to the closing date.
- Check that any amount owed shows as paid from the seller's side on your Closing Disclosure or settlement statement.
- Set up the account in your name with the utility right after closing.
More on what happens at closing in closing day in NH and NH closing costs.
What if the home has a well and septic system?
Then there's no town water or sewer bill, but there are other things to check, such as water testing and the septic system. See the well and septic guide.
Sources
- NH RSA 38:22, Liens for municipal utility charges
- NH RSA 149-I:11, Liens and collection of sewer charges
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.