15 Dez Promotion Agreement Of
As part of a transportation agreement, landowners and developers cooperate with the common goal of maximizing the value of the land and securing a sale. The landowner is not required to sell the land, so one can wait to see how much the planning and assistance process adds to the value before making a decision. The developer receives an agreed share of the potential proceeds of the sale, so that the landowner wishes to obtain the highest possible price. 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. One of the advantages of an option agreement is that the landowner has personally chosen the developer to whom he intends to sell his land. The landowner may live in the immediate vicinity of the land in question and have a particular aesthetic in mind, or the landowner may like the way the developer operates and therefore feels best placed to work with him. Hazel Eccles, a senior partner in our real estate team and responsible for our agriculture and rural team, considers the pros and cons of entering into an option contract or promotion contract. The agreement should set clear objectives and commitments for the project proponent to maximize value, minimize planning gains and minimize affordable housing. If you have mature land for development, how are you going to get the best possible return on its value? If you don`t have experience in design and construction, you`ll probably need the expertise of a professional developer to increase the value of the land.
The two most common ways to organize it are an option or promotion agreement. Everyone has advantages and risks, and specialized legal advice is essential to make the right choice and ensure that a well-developed agreement is reached to protect your interests. The decision will be made on the desire of the landowner to participate in the assistance process and on the relationship between the developer and the landowner. An expert lawyer will be able to guide the landowner in this decision and, crucially, ensure that the formal agreement with the developer reflects exactly what the parties have agreed. Good preparation will contribute to the success of the development project and avoid wasting profits in the event of costly litigation. The agreement requires an explicit termination clause if the promoter does not comply with the rules and there is no real prospect of success. 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. What are the main pros and cons of any type of agreement? The landowner must be able to freely use the land for a long period of financing, including the lease of the land. There will often be a number of parties involved in the agreement, but each agreement will focus on the obligations of the landowner and the developer/promoter. There are pros and cons to any type of agreement, and it will be for each owner of the property to judge what is most important to them when considering selling their land to a developer.
In general, options and transportation agreements can be quite similar in the period leading up to the issuance of a building permit. The landowner may gain more control over the content of the implant application filed under a transportation contract, rather than in an option contract where the ultimate developer wishes to retain as much control as possible.