PROPERTY TRANSFER INFORMATION FOR

Buyers, Sellers and Realtors In Birchwood Lakes

SPECIAL ASSESSMENT BACKGROUND

Prior to the flood of July 2004, the three lakes in Birchwood Lakes underwent the natural silting that occurs in lakes. The lakes needed dredging.  The July 2004 flood damaged both dams and both dams required repairs. This brought on a requirement by New Jersey for the dams to be brought up to 2008 NJ Dam Standards. The estimated cost for both the dam repairs and lake dredging was approximately $2.4 million. Since the lakes are owned by the Birchwood Lakes Colony Club, a private corporation, and not by Medford Township, Burlington County or the State of NJ, the cost of this project had to be borne by the property owners of Birchwood Lakes. At that time, it was determined by the vote of a large majority of the property owners to do the dam repairs and the lake dredging as one single project. The amount to be paid by each property owner was to be determined by a Special Assessor hired by Medford Township by Ordinance #2005-26.  All the properties and the amount assessed to each property are listed in the Special Assessments by Property. You can approximate the annual payment by multiplying the original Special Assessment by 7%.

 DISCLAIMER: The following generalized information is not legal advice and is presented here only to give the residents of Birchwood Lakes ‘Heads Up’ information about the Special Assessment. Only an attorney can give legal advice.

The Special Assessment assigned to each property is NOT a lien on the property. However, the Special Assessment can result in a lien on the property if it is not paid when due. A tax sale of the property can result from a foreclosure action if the tax lien is not paid upon demand.

PROPERTY SETTLEMENT INFORMATION

At Settlement, the remainder of the Special Assessment MAY be paid off either by the seller, the buyer or any combination, but does NOT have to be paid off. If it is not paid off at settlement, the buyer and both title companies MUST be informed in writing prior to settlement of the details of the Special Assessment on this property. You should consider having this information added to the Agreement of Sale as well as an Addendum to the deed for recording. This information is available only at the Medford Township Tax Collector’s Office as it is NOT recorded at the Burlington County Clerk’s Office. If the Special Assessment is not paid off, then annual payments on this Special Assessment would continue until the Special Assessment is paid in full. Your attorney, required in real estate transactions by NJ statue, will prepare the documents.

An amendment was used in a late 2008 real estate transaction. Shown below is how an Amendment could look. It is a

SAMPLE (i.e. serving as an illustration) and NOT as an EXAMPLE (i.e. one that serves as a pattern to be imitated).

 AMENDMENT TO CONTRACT FOR SALE OF REAL ESTATE

This Amendment was prepared on the __ of December 2008, relative to a certain Contract for Sale of Real Estate prepared on the __ of December 2008, between _________, the Sellers, and ______, the Buyer.

Whereby Seller and Buyer agree to sell and buy that certain tract of land and premises situated in the Municipality of Medford, County of Burlington, State of New Jersey, more commonly known as __ S. Lakeside Drive ___.

and WHEREAS Seller and Buyer have agreed as follows:

The Buyer and Seller both understand that this property has received a Special Assessment for the repair of the dams and the dredging of the lakes. The assessment is $490.00 per year for 20 years, this calculation received from the Medford Township Tax Collector showing the present balance and the remaining annual payments based on a $7,000.00 assessment at 2% interest per year. This calculation paperwork will be made part of this agreement. The Seller will pay the first assessment on January 1st of 2009. The Buyer will take over the remaining annual payments required to fully pay the assessment.

This amendment to the Contract for Sale shall not be construed to abrogate any of the other terms or conditions of the Contract for Sale.