100+ unit contract question

[Kyle Jones]

Hello, I'm nearing the end of a contract negotiation for a 100+ unit property, and the "final" request the seller came back was the following: 

Our CPA recommended that we add a sentence to Paragraph 8: EVENTS OCCURING AT CLOSING. Seller shall deliver to Buyer:

(g) Buyer & Seller agree that the valuation of the Personal Property conveyed under this contract is $1,000 & any sales tax will be paid by Seller.

I sent the question to my attorney, but he's out of pocket at the moment. Any guidance on what this actually means would be helpful from a Buyer's perspective. Thanks!

[Scott Skinger]

I'm not a lawyer and have no desire to be one, but:

A. I agree with @Salvatore Lentini, run it by your experts. I'm sure waiting for a response won't kill the deal.

B. From a "what does this mean, should it be stressing me out?" perspective, my gut says no. I think it is a minor detail that will have no bearing on you. It seems to be protection so the IRS doesn't determine that something within the building is personal property valued at "$x" and not part of the apartment sale, thus requiring tax to be paid on it. This clause basically says all personal property on premises is worth no more than $1000. Better to add this detail than let the IRS determine it. Plus, the CPA has to justify his existence/fee. 

Here is an article from a lawyer that relates to this issue, https://ronwebster.com/content/sale-furnished-prop...

Good Luck!