As part of a grant agreement, the developer first uses his expertise to promote the land or land for development in general as part of the local planning plan, and then obtain the building permit. The building permit would generally be for the form of planning agreed with the landowner – of course, this must be viable and appropriate for both parties. The developer (developer) then promotes the property (with planning permission) on the open market for sale. Iain concludes that LPAs are beneficial to both landowners and potential buyers – as it maximizes returns and sells the land at an optimal time for both landowners and developers. However, it would recommend that the VAT aspects of these agreements be fully taken into account to ensure that there are no tax losses for landowners. 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. 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. A promotion agreement (sometimes called a land support contract or development promotion agreement) is a form of contract that mimics the appearance of an option agreement and may well include options for the developer/developer to acquire the land. The parties to a transportation contract are usually the owner of the land and the “promoter,” who is usually a real estate developer. 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)? Under this agreement, a developer assumes responsibility for securing the building permit and also has the option to purchase the land at a given point (usually once the planning is complete).
The purchase of the developer is made at an agreed price that generally reflects the market value of the land, net of compensation for the guarantee of the building permit and perhaps instead of a levy that would otherwise have been levied. Options are usually time sensitive and a fee can be paid to back up the option, as well as extend it if necessary. 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. Advertising contracts will be more attractive to developers and sourcing agents, especially in the current climate, with a high acquisition cost related to stamp duty and financing. However, the main drawback is that the landowner and developer sit on opposite sides of the option table and are thus on the hot seat under many conditions, including the purchase price and the amount of the overrun.