Promotion Agreement Fee

When assembling land into a construction zone, it is customary to enter into an option contract with the landowner. However, in certain circumstances, it may be preferable to enter into a transportation contract. In this article, we explain what they are, what are the differences between option agreements and promotion agreements and when they should be used. There are different types of agreements that can be made with a developer, with which a religious organization owns a building permit and then a sale with the decoying permission. When more than one landowner is involved, it is generally necessary to enter into a comprehensive agreement (or cooperation or consortium) between landowners to allow the pooling of land and resources. Cooperation and consortium agreements are complex, particularly in the tax field. To address this deficiency, overcharged provisions are included in the option agreements to achieve the added value resulting from an additional building permit obtained after the option is exercised. This is especially useful when the developer obtains successive planning permissions in stages. If there is a risk that the proponent will also deal with competing sites that may affect the likelihood of success, the landowner should respect the developer`s agreement not to market competing sites.

The two forms of agreement are also very different in terms of the relationships it has between the parties concerned. A promotion agreement creates a much more collaborative relationship, with both parties wanting the best value for the country so they can contribute to the revenues. With an option agreement, there is much less cooperation, with the interests of the parties largely divided; the developer will want to secure the country as favorably as possible, within a period of time to adapt it. The option agreement gives the option holder a unilateral right to acquire the land that is the subject of the agreement, subject to the conditions specified in the option agreement and, of course, subject to the other terms of the agreement. The only certainty in bringing a more appropriate agreement closer is the need for clear and informed consultation. The best agreement will always be well drafted and will reflect exactly what the parties have agreed.

Comments are closed.