Lot Purchase Agreements – Not Your Typical Agreement of SaleJuly 2015 – Articles In the Zone
In the last 10 years, we have seen a substantial reduction in the number of local and regional home builders. This has led to a reduction in the number of parties who are available and able to purchase land for new homes. We are not talking about buyers who simply “tie-up” property to “flip it” and make a buck. We are talking about buyers who have the ability to take property through the entire approval/permitting process and then build homes on the building lots. As a result, there is less opportunity for landowners and developers to sell unapproved land or approved building lots. These landowners and developers are now faced with the decision, after taking their land through the approval/permitting process, to install the site improvements themselves and then sell approved and improved building lots to national or regional home builders. The negotiation of a lot purchase agreement to sell approved and improved building lots is much different than negotiating an agreement of sale to sell either unapproved land or approved building lots. Click here for a checklist listing some of the issues that need to be considered as a seller of approved and improved building lots when negotiating your agreement. This checklist can serve as a starting point in your negotiations but is certainly not a substitute for engaging legal counsel at Fox Rothschild who are experienced in the negotiation of these types of agreements.