Nowadays, development land is prized
commodity. If you’re owner of surplus land then you can enjoy good time with
benefits of commercial options or chanced offered by development department.
There’re different methods of selling a land with agreements of land promotions
which is perfect choice for both developer and landowner. In this post we will
discuss these points briefly.
land promotion Agreement?
If you want to make purchase transactions, you can view this type of agreement in developer and landowner, by maximizing the land’s value for benefits of all parties. Once an initial premium is paid by developer when agreement is completed, a developer is already committed to promote the site by planning; he/she has to look all linked risk for obtaining consent. If you’ll allow then developer can market or sell the property and the net amount is shared between landowner and developer.
The respective share is received and will show the
risk’s level taken by a developer for getting permission and importance on both
side. It is also for contribution on market value or sale price. It’s also paid
as initial premium with costs implemented by developer.
Promotion Agreement Advantages or Pros
The beauty of well-crafted land agreement for
promotion should be good or attractive for both parties. It should allow the
land or site can be sold with maximum value of market, generating a
return-on-investment for bother developer and owner. This is contrast of Agreement, another option
or alternative for dealing land for sale. With this agreement, a developer can
reserved a right to purchase it on specific conditions. It usually revolves
around consent planning. A developer can obtain a land on affordable rates and
to get good return. It’s also gives good revenue. The owner can also buy it
with minimum risk and pass through planning of process. It’s also easy to check
how finances can be reduces with tensions as well.
By using promotional agreement, a developer can also achieve permission by planning. They can also manage cost, which can be minimized as the percentage can be shared for proceeding sale. After planning, it is seen a site is managed in market and sold on highest price with actual price which can determine the share divided into parties. Everyone wants to win! Am I right?
Promotion Agreement Disadvantages or Cons
Promotion of land works well in all aspects with this
agreement however it is important to check all good or bad things in deal.
Potential disagreement is landlord and a developer revolves in exact timing of
sale. In this unfavorable clime, a developer can also proceed with sales and
after obtaining the consent, market become weak. The owner can prefer to wait
the land prices is recovered. What else we can get? What’s more? There’s
mechanism which is defined and restrict the cost which is incurred by promoter.
An owner can also share it. However, there’s no incentive for developer as they
will spend money with full reimbursement. You can get final sale price after
deducting all cost.