Lowndes attorney Gary Kaleita discusses potential agreement considerations when developers purchase land parcels and permit the seller to remain on the property after closing.
By: Gary M. Kaleita
The Central Florida housing market is still going strong at the moment, with the result that developers are continuing to create new residential subdivisions in traditionally rural areas. Much of this rural land is comprised of large parcels owned by families for many years. Sometimes the parcels are large enough to be developed by themselves, but in other cases developers are placing multiple adjoining parcels under contract for purchase in order to aggregate them into a single large development, using contracts that are conditioned upon all of the sellers closing at once. These contracts also typically contain numerous conditions to the buyer’s obligation to close that may include rezoning, subdivision plan approval, and engineering approval for the proposed subdivision that the developer wants to build.
Given that such contracts include more than a few contingencies to closing that are not present in a typical contract to sell a home, some rural owners are concerned about the potential liability associated with contracting to buy a new home in advance of selling the old one. Additionally, they are concerned that they not be obligated to close on the new home until they receive the proceeds from the sale of the old one. It is very difficult for them to contract to buy a new home if that contract is contingent on selling their old home. [...]
This is an excerpt from a blog post originally written on Lowndes Leasing Lawyers. To read the entire post, click here.
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