Given that residential construction has become a “hot topic” and will continue to be so in the years to come, both landowners and developers should consider opportunities to cooperate so that everyone benefits. Land aid agreements are only one way to achieve this. 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. 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. What should the owner think about it after opting for an aid contract? Our commercial real estate lawyers are very experienced in the business for landowners whose land has been recognized as promoting development at one time or another and making sure that they are protected from developers and land companies, which are generally very demanding. Their wide range of clients includes developers, landlords, investors, professional tenants, housing companies, lenders, training and charitable organizations, and individuals. As a developer, you will understand that realizing the value of a site with development potential is not without risk. There are dangers at every stage of land aid; Whether ownership of the land is satisfactory, the fear of the project owner`s withdrawal, and the magnitude of the unforeseen costs of the evolving planning process. While the type of land assistance agreement is generally positive and collaborative for both landowners and developers, it is important that the agreement be carefully documented.
Particular attention should be paid to funding targets; Obligations to the developer and owner of the land; The owner`s level of involvement during the trial; How land should be marketed and sold to maximize yield (including adequacy of transportation costs and the application of a cap); and how the proceeds of the sale will be distributed. Typically, a developer agrees to promote and obtain the land building permit and takes appropriate steps to achieve this. In return, the developer receives a royalty for the “promotion” of the land, usually a percentage of the proceeds from the sale after deduction. If both agreements are well negotiated, they can achieve a satisfactory result. However, consideration should be given to the particular circumstances of the land, its location, the characteristics of the local market and the planning legacy of the area in deciding on the best approach, which is why it is always useful to have professional advice. Promotional agreements are attractive to developers because they do not need to find financing and must purchase the property themselves or have actual LTD costs. Reaching an agreement with a developer or developer can be an effective way for individuals to release additional value from their country, especially if they don`t have the time, experience or money to fund the promotion and planning process themselves. The promoter funds the entire process, including covering your trial costs for the conclusion of the agreement.