Entitlement Contingency Contract Negotiator Services
Eric Andrews structures Land Sales Agreements and Entitlement Contingency Contracts nationwide.
Eric works with sellers and real estate agents.
Selling land? Contact Eric today.
We negotiate contracts which are beneficial to both buyers and sellers.
Eric has worked with Toll Brothers, David Weekley, Ashton Woods, D. R. Horton, Pulpe Group, Maeritage Homes, Ryan Homes and every top builder in the USA.
What Exactly is an Entitlement Contingency Contract?
In real estate, an entitlement contingency contract is made by a buyer when their offer is contingent upon them being able to do what they want to do with the property upon transaction completion.
Usually, residential land is being sold to a buyer who wishes to rezone the property commercial, or the seller has a large tract of land being sold to a developer who will be building a residential subdivision.
Contracts are often very complex, especially when a developer seeks to build X number of lots on land or rezone for different densities than the land is currently zoned for.
Why Real Estate Agents choose Eric:
Eric was fortunate to learn from some of the best over the years. Now he will help you gain competency and experience to navigate land sales. Eric has gradually worked up to large land sales for decades.
What is the Entitlement Contingency Process?
Land sales involving an Entitlement Contingency Contract vary, but typically go like this:
- There will be a Preliminary Evaluation by the buyer where they will do “Pre Due-Diligence”.
- After, the buyer will issue a Letter of Intent (LOI) – often, a lot of the work happens, or should happen here with the LOI.
- Once the LOI is accepted, you’re Under Contract.
- Then the buyer enters a “free look” phase, which is an examination process that may include inspections, sketch plans, etc., this “free look” is not free and can cost tens or even hundreds of thousands of dollars.
- Next is often the application process, where the buyer may be applying for various permits with various municipalities.
- Public Hearings could occur.
- Then, many projects will go to a Planning Approval Board, and/or commissioners, advisors, and/or other decision-makers.
- Next is generally the Construction Planning process where grading, roads and other things are determined.
- There will be a technical review.
- Then, finally, there are often time extensions needed – these may be built into the contract, or, they may be needed even if they were not in the contract, which is often stressful for everyone involved.
- Finally, Settlement.
Ready to Get Started?
Structuring Land Sale Agreements with Milestones.
Eric has designed what he calls a “pay to play contract”.
The contract changes drastically from year to year. As certain criteria is met, money is released to sellers. Private home builders and publicly traded companies behave much differently and navigating these waters is challenging until you have experience.
Eric has gradually worked up to large land sales for decades.
Common Problems Real Estate Agents Have:
Some agents new to listing land have unrealistic expectations.
To get top dollar for land, a serious buyer will NOT close without knowing for sure they can use the property for what they intend on using it for.
You need a strong contract.
You need to prepare your seller for multiple rounds of negotiations and let them know how long it will take to close, which can be 12, 18, 24 months depending on a variety of factors.
Additional Resources:
Structuring Land Sale Agreements with:
- Toll Brothers
- David Weekley
- Ashton Woods
- DR Horton
- Pulpe Group
- Maeritage Homes
- Ryan Homes.
Structuring Land Sale Agreements with Entitlement Contingencies everywhere, including:
- North Carolina
- South Carolina
- Florida
- Texas
- Colorado
