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Husband and I are looking at a potential home that just went on the market. After some deep searching the house has this clause:
There is a sewer betterment in the amount of $5,330.00 (around 16 years left) $410 per year split between 2 quarters to be assumed by buyer.
Can someone explain this? Does this mean we're merely required to pay $410 extra a year? I googled the term and it looks like a sewer betterment a tax that can be assessed by municipalities to properties that have been "bettered" by the construction of a public sewer. So we'd be 'paying back' the town for the next 15 years or whatever... Assuming this is something the town approved a while back.
Not sure about the terminology, here it's called a "benefit charge". From where I'm sitting your analysis is correct. The payment goes to pay off the capital cost of the sewer plant and system construction, upgrading, replacement of capital equipment (pumps, grinders, etc.).
The system/plant wher I live is about 35 years old and is currently undergoing a major rebuild and upgrade of treatment processes. About $25M total.
We don't have that term here. We just call them assessments and it is exactly as you state that the owner of the property pays a share of the improvements over time.
Call the city or county and they'll tell you for sure.
ya u are right in your interpretation. i think the "sewer betterment" term is more commonly used in MA. i have seen several houses in MA with outstanding sewer betterments too. you don't have to stick with the $410/year repayment. i was told by realtors that you can actually pay it off in a lump sum to avoid incurring interests on the instalments.
ya u are right in your interpretation. i think the "sewer betterment" term is more commonly used in MA. i have seen several houses in MA with outstanding sewer betterments too. you don't have to stick with the $410/year repayment. i was told by realtors that you can actually pay it off in a lump sum to avoid incurring interests on the instalments.
We do it that way here to. You can pay a lump amount or payments. I would just negotiate the payoff as part of a contract, personally.
I don't know whether I'd bother with negotiating. If I understand correctly the charge is levied twice a year (as part of the water/sewer bill?). The interest portion of the payment is deductible. If the jurisdiction labels it as a special assessment the whole payment is deductible, which is how we do it as a line item on the annual property tax bill.
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