The promoter says it is ready to support the country within a local development framework. She has developed a particular expertise in managing complex real estate development issues, including transportation contracts. As a general rule, a land assistance contract provides that in addition to the aforementioned personal commitment, a landowner may enter into a land promotion contract with the project proponent to ensure that his rights holders make a similar commitment with the developer. This would mean that the developer of the project could enforce the obligations of the landowner under the basic assistance contract against the rights holders of the landowner. Project proponents would be protected because the title of landowner would be limited in the land registry. The restriction is released if the period of action expires or if the Land-Promotion contract is terminated. This method is often used in relation to a buyer who indicates a legal or fair tax to ensure future payment. Project proponents will want to ensure that the landowner`s obligation to pay the developer`s share is effectively ensured, because without an adequate guarantee, the landowner`s obligation to bear these costs and the share of net sales revenue may be worthless to the developer. If there is a risk that the proponent will also deal with competing sites that may affect the likelihood of success, the landowner should respect the developer`s agreement not to market competing sites. A transportation agreement is an agreement between a landowner and a planning specialist to promote the owner`s land through the development process in order to obtain the building permit. Once the building permit is issued, the landowner and the developer cooperate to market and sell the land to a developer. The price paid by the developer would then be divided between the landowner and the developer on a previously agreed basis.
In addition, the landowner may be concerned that the developer is “flipping” the land for immediate gain, which means that he may need to consider adopting additional provisions on the surplus (clawback). The developer will commit to using its funding, experience and expertise to obtain the land building permit – efforts that are generally at risk to the developer, as the landowner is not expected to provide the funds necessary for further planning. The organizer asks for the building permit and pays the costs.