Every Friday we give fast answers to quick questions about home selling, buying, anything about real estate!
Today’s Question: What is a betterment and what does it mean in a home sale?
You’ve just found the home of your dreams. When you read the listing sheet, it says, “Betterment passes on to the buyer.” What does that mean? In any town, when there is an improvement to the neighborhood, the town will assess a dollar amount called a betterment to the homeowner that they must pay.
Usually, it is a substantial amount of money that is added into their annual taxes that they pay over a period of time. Some people take 10-20 years to pay it off, while others pay it off all at once. However, usually towns give time to pay it off with some interest for those who can’t afford to pay it off all at once. A betterment does become somewhat of a lien on the property, and has to either convey to the new buyer or be paid off at closing. It is something that can be negotiated between the buyer and seller, and it usually varies depending on what kind of marketplace you are in.
We hope that helps! If we can help further, give us a call at 978-494-0346!
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