For the buyer, a PMM can be a primary source of financing (eliminating the need to negotiate for a mortgage with a third party) or a secondary source of financing (enabling the buyer to take advantage of an assumable first mortgage on the property). For the seller of real estate with an assumable mortgage with desirable terms, a PMM may enable the seller to obtain a higher selling price. The seller also may view a PMM on sound property to be a desirable investment, providing a higher return than that obtainable if cash proceeds are to be reinvested. Finally, a PMM may have tax advantages to the seller, enabling gain to be recognized only as installment payments are received.
In an effort to add further transparency into nonprofit organization reporting, the IRS added Part VI to the revised Form 990 in 2008. This section asks a variety of questions which cover a spectrum of best practices in the areas of governance, policy and disclosures.