Common use of REAL ESTATE TAXES, SPECIAL ASSESSMENTS AND PRORATIONS Clause in Contracts

REAL ESTATE TAXES, SPECIAL ASSESSMENTS AND PRORATIONS. Seller represents that to the best of its knowledge, all real estate taxes and assessments due and payable in all years prior to the year of Closing have been paid in full. All real estate taxes and special assessments due and payable in the years following the year in which closing occurs shall otherwise be the responsibility of Buyer. The parties acknowledge and agree that the tenant of the property is responsible for payment of taxes and special assessments and thus no actual proration of funds at closing shall occur. Buyer also understands that the tenant in the property submits monthly tax escrow payments to Seller. These payments are placed in an escrow account with Seller to be applied to real estate taxes as they come due. All funds from the tenant being held by Seller in escrow will be forwarded to Buyer at closing. Buyer also acknowledges that the tenant pays additional percent rate on an annual basis based upon the tenant's Gross Sales when they reach certain thresholds outlined in the lease. Buyer agrees to work with the tenant at the time the next annual percent rental payment comes due to insure the annual percent rent, if any, will be prorated to Seller and Buyer based upon the number of days each party owned this Property during the time period covered by the percent rent calculation.