Will structuring payment of the purchase price through the installment purchase agreement cost me money?
Yes. There are 2 costs to the seller associated with making the sale this way. First are the elective costs of hiring experts to assist you in making the sale and assessing how this method of payment affects your financial circumstances. The county strongly urges you to consult with an accountant or other expert financial adviser as well as a tax attorney to help you understand how this transaction will affect your taxes and your particular financial condition. Because this type of transaction necessitates the purchase of securities by the county, the county incurs costs that it does not incur in cash purchases.

Since all other costs of your sale (e.g., appraisal and survey) are borne by the county, the Freeholder Board has decided that a portion of the additional costs related to the installment purchase agreement (IPA) should be borne by the seller.

The seller is responsible for a payment structuring fee equal to 2% of the face value of the IPA capped at $20,000. This amount can be deducted either from the payment to be made at closing or from the principal amount of the IPA. Alternatively, this payment can be made in cash by the seller at closing. If a seller requests multiple IPAs, they will be charged $3,000 for each additional IPA in the excess of 2 in addition to the 2% fee.

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?