A. Insofar as settlement is concerned, the village will pay the search and evidence or assurance of title and recording costs. The owner will not be required to pay any sales commission. The village will not pay liens, loans, special assessments, real estate taxes, mortgages and judgments on the property. Payment of these are the obligation of the property owner. These liens and encumbrances may be paid by the property owner before the closing or from the proceeds paid to the property owner at the time of the closing.

B. If the property owner does not believe the amount offered to him or her represents the fair market value, he or she must provide evidence to show error in the village’s valuation. The property owner is free to reject the village’s offer but unless error would be shown in the appraisers’ report, which must be corrected, it would be necessary to initiate condemnation proceedings which would be initiated some time after the village’s offer is rejected. The village will send a notice of condemnation to the property owner. The property owner at this time has the right to obtain his or her own appraisal. This appraisal should be done by a certified professional appraiser. The property owner may then submit his or her appraisal to the village.

C. Negotiations between the property owner and the village will begin. If the village and the property owner can agree upon a price then the condemnation suit will be stopped. If an agreement cannot be reached, the condemnation suit will proceed and the Circuit Court will set the fair market value of the property. If a condemnation suit is filed, the cost of appraisal services, attorney fees and other costs which the property owner would incur in presenting his or her case to the court would be his or her obligation.

D. If the owner has a GI loan on the property, the Veterans’ Administration will generally recognize the circumstances of the sale and restore his or her loan privileges so that the owner may use them to purchase another property. The village would advise the owner to check on such arrangements with the nearest VA office.

E. In most instances, the sale of privately owned property to the village for public purposes is considered “involuntary conversion” by the Internal Revenue Service and the owner may not have to pay capital gains tax on any profit from the sale of the property if the money is reinvested in similar property within two years. Internal Revenue Service Publication 549 “Condemnations of Private Property for Public Use” and IRS Publication 17 “Your Federal Income Tax” are available to guide the property owner. The village would advise the property owner to discuss his or her particular circumstances with his or her particular tax advisor or local IRS office.

F. If the property owner is an owner-occupant, he or she may be entitled to receive relocation benefits. The village would suggest that he or she contact the village’s community development office to discuss possible benefits. No owner-occupant shall be required to move from his or her dwelling without notification in writing by the village at least ninety days in advance of the date by which such move is required, unless such notice is found to be impractical.

G. 1. If arrangements are made to rent the property to an owner or his or her tenant after acquisition, or for a short term (defined as three years or less), or for a period subject to termination by the village on short notice, the rental will not exceed the lesser of:

a. The fair rental value of the property to a short-term occupier; or

b. The prorated portion of the fair rental value for a typical rental period.

2. If the owner or his or her tenant is an occupant of a dwelling, the rental for such dwelling will not exceed twenty-five percent of his or her income. (Part of Res. 1979-8)