This is where the developer makes the decision the write the offer to purchase a parcel of land. This is usually is followed by several back and forth negotiations through counteroffers and contingencies. When there has been a meeting of the minds between the buyer and seller upon an acceptance,
the land sales contract will then begin the executory portion which begins with the opening of escrow.
A developer may ask for certain contingencies to be met upon closing such as the rezoning of a property for the developer’s intended use (i.e. commercial to multi-family residential), staking land to determine lot lines, to conduct a perlocation test and drill exploratory holes to observe the soil conditions.
Important attention should be made to properties on the market which advertise themselves as having been approved by the local city council with all entitlements. Many approvals are given a 1-3 year period upon which their comments will then expire, due to changing conditions, which would require an landowner to reapply to maintain such entitlements.
