How does the sale of my easement change with an installment purchase agreement?
As in a cash transaction, once the county and the owner are ready to conclude the sale, the owner signs and gives a deed of easement to the county. By this deed, the owner agrees to use or maintain the property for agricultural purposes. If the county has agreed to pay a portion of the purchase price at closing, a check is given to the owner or applied to claims against the property, such as mortgages. The balance of the purchase price, along with interest on the principal, is paid to the owner through the installment purchase agreement (IPA) issued at closing.

The IPA provides for the payment of interest on a semi-annual basis (2 times per year) until the date specified in the IPA for the payment of the balance of the purchase price. The interest and principal are paid by a “paying agent”, ordinarily a bank, on behalf of the county.

Show All Answers

1. What is an installment purchase agreement (IPA)?
2. How does the sale of my easement change with an installment purchase agreement?
3. Why is the county using installment purchase agreements for easement purchases?
4. How can structuring payment through an installment purchase agreement benefit me?
5. Why is payment being deferred as late as 2036?
6. What is the interest rate that I will earn under the installment purchase agreement?
7. If payment for my easement is deferred, does this mean that the easement will not be effective until 2036?
8. What happens if I sell the property before 2036?
9. Can I sell or transfer the installment purchase agreement?
10. If my property increases in value between the time that I sign the easement and the year 2036, will the county pay me more for my easement?
11. What happens if I am willing to sell but only want to sell for a cash payment?
12. Will structuring payment of the purchase price through the installment purchase agreement cost me money?
13. Can I use the county's advisers to assist me in selling my easement to the county with an installment purchase agreement?
14. How do I know that the county will have enough money to pay me in the year 2036, and what happens if the county (or its paying agent) fails to make an interest payment to me?
15. How can I find out more about installment purchase agreements?