Tax Abatement Transfer Contingency Clause Samples
A Tax Abatement Transfer Contingency clause allows a real estate transaction to be conditional upon the successful transfer of an existing tax abatement from the seller to the buyer. In practice, this means that if the property currently benefits from reduced property taxes due to a government abatement program, the sale will only proceed if the buyer can continue to receive those tax benefits after closing. This clause protects the buyer from unexpected increases in property taxes and ensures that the financial advantages associated with the abatement are preserved, thereby reducing the risk of higher ownership costs.
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Tax Abatement Transfer Contingency. If the Tax Abatement Approval (as defined in Section 10.3.1 hereof) is not granted and the Tax Abatement Approval Date (as defined in Section 10.3.1 hereof) does not occur on or before March 31, 2011 (the period from the expiration date of the Feasibility Period through and including March 31, 2011 being referred to herein as the “Additional Condition Period”), then Seller and Purchaser shall each have the right to terminate this Agreement upon notice to the other party at any time thereafter and prior to the Tax Abatement Approval Date. Unless Seller elects (in its sole discretion) to waive this condition, if the City of Jersey City fails or refuses to release Seller and its affiliates from any of their obligations with respect to the Tax Abatement with regard to the Property accruing after the Closing Date, then the Tax Abatement Approval Date shall be deemed not to have occurred.
Tax Abatement Transfer Contingency. The obligations of Purchaser to purchase and Seller to convey under this Agreement are contingent upon the receipt of the Tax Abatement Approval (as defined in Section 10.3.1 hereof) within the Additional Condition Period.