What Is A Promotion Agreement

There are pros and cons to any type of agreement, and it will be for each owner of the property to judge what is most important to them when considering selling their land to a developer. In general, options and transportation agreements can be quite similar in the period leading up to the issuance of a building permit. The landowner may gain more control over the content of the implant application filed under a transportation contract, rather than in an option contract where the ultimate developer wishes to retain as much control as possible. After obtaining a building permit, the option and transport agreements can yield different results. One of the most important considerations for a landowner will be to what extent he wishes to be involved in the planning process. A transportation contract will give the landowner a greater degree of control and participation in the design and promotion and allow an owner to better understand the value he or she gets for the land before accepting the sale. On the other hand, an option agreement leaves these issues in the developer`s control under the terms of the agreement. The landowner may attempt to link a developer to a conditional sale agreement that will require the developer to purchase the land when planning is done. It is best for the landowner to identify a project developer with relevant local knowledge, contacts, expertise and balance sheet to ensure that the promotion agreement has the best chance of success.

When a landowner has a development-friendly land and is thinking about how best to plan a future sale to a developer, they may generally consider entering into either an option agreement directly with a developer or a promotional agreement with a “Promoter” planning specialist, who then works with the landowner to sell to a developer. The obligation for a landowner to pay the developer`s share as soon as the land is sold with a satisfactory building permit can be provided by a developer who, after the replacement of the land support contract, pays a first royalty for the property.