Option Agreements
Option agreements give the buyer the exclusive right to purchase a property within a defined timeframe
- Allows site control without immediate purchase obligation
- Often includes an upfront option fee credited toward the purchase price
- Useful for conducting due diligence or securing entitlements before closing
- Protects against competing offers while buyer finalizes financing or design
Right of First Refusal (ROFR)
A ROFR allows the holder the chance to match any third-party offer made to the landowner
- Activates only when the seller receives a bona fide purchase offer
- Offers control while reducing upfront cost or commitment
- Commonly used when the buyer already owns adjacent parcels
- Ensures strategic parcels remain in reach during phased acquisitions
Purchase and Sale Agreements with Delayed Closing
Binding contracts with extended timelines allow buyers to secure parcels while preparing for full acquisition
- Enables project planning, permits, and rezoning efforts before taking title
- May include performance benchmarks tied to entitlement milestones
- Helps align multiple closings for larger assembled sites
- Reduces need for bridge financing during entitlement phases
Memoranda of Understanding (MOUs)
MOUs document shared intent and framework for a future transaction or development agreement
- Not legally binding but help define roles, timelines, and negotiation structure
- Useful in early-stage coordination with multiple landowners or partners
- Sets the stage for more formal legal instruments like options or JV agreements
- Demonstrates credibility to investors, planners, and public agencies
