(f) SPECIAL ASSESSMENTS: At Closing, Seller will pay: (i) the full amount of liens imposed by a public body
("public bodV' does not include a Condominium or Homeowners Association) that are certified, confirmed and
ratified before Closing; and (ii) the amount of the public body's most recent or assessment for an
improvement which is substantially complete as of Effective Date, but that has not resulted in a lien being
imposed on the Property before Closing. Buyer will pay all other assessments. II special assessments may
be paid in installments (CHECK ONE):
(a) Seller shall pay installments due prior to Closing and Buyer shall pay installments due after
Closing. Installments prepaid or due for the year of Closing shall be prorated.
Chapter 7 Bankruptcy Attorney
Public body could include government agencies (like property tax assessments, IRS debt) or utilities company liens. Hope that helps!
Frequently cities and counties install improvements like curbing or sewers in a neighborhood. Rather than taking money out of general revenues to pay for these improvements, the cities and counties assess the owners of property in the neighborhood for the improvements. Generally these assessments are paid in installments over several years over several years as part the yearly real estate tax bill. When a house is sold, there is a question as to whether the buyer or the seller should pay the cost of the assessments. The provision you quoted is a provision in a purchase and sale contract designed to deal with this question.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.