What Is Agreement Promotion

Filed under:Uncategorized — posted by admin on December 21, 2020 @ 4:09 am

What happens, for example, if the option is never exercised? The landowner must decide what control he or she needs over the planning process, especially if land is retained. The agreement should set clear objectives and commitments for the project proponent to maximize value, minimize planning gains and minimize affordable housing. An option agreement does what is written on the box; it gives the developer the opportunity to purchase the land from the landowner within a specified period of time (usually 5-10 years, but it is negotiable). The landowner must be able to freely use the land for a long period of financing, including the lease of the land. In the event that the landowner needs approval of applications and agreements, will the developer be required to appeal, what other land should be included (can it be part of a larger project)? The parties must decide who appoints the agent in the sale process. The landowner may have his or her usual land agent, but a developer may also have his or her own preferred or related agent. A crucial aspect of the marketing agreement will be whether the owner of the land should be protected by a minimum price, so that he or she does not have to sell in the event of a poor market at the time of marketing. A transportation agreement is an agreement between a landowner and a planning specialist to promote the owner`s land through the development process in order to obtain the building permit. Once the building permit is issued, the landowner and the developer cooperate to market and sell the land to a developer. The price paid by the developer would then be divided between the landowner and the developer on a previously agreed basis. Some developers may require that an option or pre-purchase be included in the transportation contract so that they can purchase the property themselves once the planning is complete.

Conversely, one of the main advantages of a transportation agreement is that the landowner and the project proponent converge their interests to obtain the best price for the land once a building permit has been issued. A landowner does not have to worry about being briefly changed at the Point of Sale, knowing that the market has been properly tested and that the best price has been obtained. Option agreements are therefore the most widely used and most landowners are familiar with this model. It is best for the landowner to identify a project developer with relevant local knowledge, contacts, expertise and balance sheet to ensure that the promotion agreement has the best chance of success.

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image: detail of installation by Bronwyn Lace