You are purchasing property that is within a Special Assessment District established pursuant to a court proceeding adopted by the City of Chicago.
The Assessment Confirmation authorized the levy, extension, and collection of a Special Assessment upon the Property, in connection with certain "Public Improvements" that will confer a special benefit on the Property (including, without limitation, parks, streets, storm and sanitary sewer, and a potable water system). In connection therewith, the City of Chicago pursuant to a certain Bond Ordinance, authorized the issuance of municipal bonds to pay for the Public Improvements, including the financing and other costs associated with the funding of the Public Improvements.
These Special Assessment bonds have a 30 year life. Your property will be assessed a fee that is billed and payable semi-annually commencing in the beginning of the year 2005 and ending in the year 2032. This assessment will pay off principal and interest of the Special Assessment Improvement Bonds. Estimated initial assessments are included in the Exhibits to your Property Report. The maximum Assessment on the Property may increase on average by no more than 1.5% each year between the first year of the levy and 2032.
If you sell your property, you will be responsible to the City of Chicago and/or the subsequent owner for the pro rata portion of the assessment for that part of the year in which you owned the property. The subsequent owner will be responsible for the assessments for the years in which he/she owns the property. The servicing agent will issue the assessment bill prior to the semi-annual due dates of each year, which will be the first business day of March and September. Additional interest and fees associated with the collection of the assessment may be added in the event you are late in making payment. The assessment is considered a lien on your property and may result in a sale of your property if not paid as required in a timely fashion.
You are purchasing the Property subject to the Special Assessment and you will not object to the Special Assessment. You agree that the City validly created the Special Assessment and that the Special Assessment is rationally related to the benefit that the Public Improvements confer on the Property. You will be responsible for the Special Assessment on your Property from and after the Closing Date.
By taking title to the Property, you hereby agree to accept title subject to the Special Assessment and all rights and impositions and obligations thereby imposed, including, without limitation, the Special Assessment, which obligations shall be covenants running with the land. The deed that you, the Purchaser(s), will receive at Closing shall contain a recitation of such covenants, conditions, and restrictions as a permitted exception to title.