What Is A Land Promotion Agreement

Some developers may request that an option or right of first refusal be included in the promotion agreement so that they have the opportunity to purchase the property themselves once the planning is in place. While the nature of a land grant agreement is generally positive and collaborative for landowners and developers, it is important that the agreement is carefully documented. Particular attention should be paid to promotional objectives; the obligations of the developer and the landowner; the degree of involvement of the landowner in the process; how land should be marketed and sold to maximize returns (including the reasonableness of advertising costs and the application of a cap); and how the proceeds of sales are to be distributed. The organizer requests the building permit and bears these costs. The landowner therefore loses control of the land in an option contract, but maintains a prohibition during a transport agreement. . . .