Joint Venture is termed for a venture or a project achieved jointly or combined, a project which has been achieved by the collaboration of two or more parties. In real estate, joint venture means that a project is developed by two parties jointly. This generally happens where one party would have his land and the other party would be interested to develop a project on that land.

Some time the owner of the land could not develop it because of many reasons such as he doesn’t have the expertise or he doesn’t have the fund and likewise for the other party who want to develop might not have a land in the prime location where he can build up a nice project.

So, if these two parties join together on a mutual understanding they sign an agreement which is termed as joint venture agreement. This agreement comprises legal understand like will there be any advance or good-will money be paid by developer to land owner? Advance is the amount which a developer needs to pay to land owner which would be refunded by the land owner after completion of the project. If any problem arises while constructing, because of which they couldn’t complete the project, then that advance Amount will not be paid back.

Good-will money is the amount which a developer need to pay to land owner for developing the project and this is not refundable. This would remain with the land owner even after completion of project.

Now when the project is completed, the property will be divided between the land owner and builder, the ratio is worked out between 60-40 or 50-50 which mean that builder will keep 60% and owner will keep 40% or both will keep 50%. This division done is basis of the built up area. Built up area dependents on the site area and the road width where the site is situated, for a 30ft road width one can maximum have build up area as 1.6 times the site area, following are the regularities for different roads

30ft road 1.6

40ft road 2.0

40ft-60ft road 2.5

60ft to 100ft 3

above 100ft more than 3 and generally more than 100ft won’t be there for residential purpose

So now lets take this example to even simplify of what we have said above:-

Let take a site which is 20000 sqft and the road width is 40ft road so maximum built-up area should be 40000 sqft. Lets assume the joint venture agreement between owner and builder is fixed as 50-50 ratio and also the owner of the land get 1cr as advance. Generally the property building cost would be Rs. 1000 per sqft, so to build 40000sqft it is 40000*1000 = Rs 40000000. After completely building the apartment, the builder would get to sell his 50% share of the total 40000 sqft which is 20000 sqft. Lets assume the apartment selling rate is worked out to be Rs. 2200 per sqft, then he will earn 20000*2200= Rs. 44000000, so builder’s total earnings for this apartment will come to Rs 4000000 minus the interest rates for the 1cr advance. Let say construction take 2 yrs to complete, so builder would lose the interest for 1cr for 2 yrs, which would come around 2400000, if he takes an interest rate of 12%. So finally builder’s total earning for this property would be 40l-24l=16l which is not good for his 2 years of work.

Likewise, lets take the land owner’s point of view, Let say that the land rate is Rs 2500 per sqft so by selling land owner will get 5cr and by doing joint venture he will earn 4.4cr + the interest on 1cr which would be 4.66cr which is 34l less than what he would have got without doing Joint Venture so its not feasible. So, eventually this deal wont work out for both the land owner and builder.

All the above calculation goes into paper to decide whether to go into joint venture or not. A sample copy of joint venture agreement can be drafted with a help of lawyer.

Building your own home is exciting. However, it can be a very challenging project. This is especially difficult if you are going to build it on raw land. There are several things you need to check to avoid problems. You also have to prepare for a lot of things. This is because building your dream home is not an easy task. You have to plan it carefully so that the finished product will be the one you always wanted.

You need to keep the following things in mind. This will prepare you as well as the land for your project. This will also help you organize the activities to ensure that nothing goes wrong:

1. Have a schedule. This is very important to make sure that all the essential activities are completed. Make a list of the things that you need to do. After that, prioritize the activities you need to do first. It is important that you complete the needed requirements. You also have to indicate when you will conduct a thorough inspection of the land and when are you going to prepare it. Having a schedule will keep you organized.

2. Find a competent contractor. There are numerous contractors in the market today. Make sure that you find one that will be able to attend to your needs. It is important that you check their license. They should be bonded and have insurance as well. Check their background as well as ask for referrals. How long have they been in the industry and learn more about their performance.

3. Prepare the permits and other related documents. Most of the time, your contractor will take care of your permits. They will check with the local authorities on the necessary permits they will need to have. Even if this is the case, it is still important that you check on this to make sure that everything is in place.

4. Check the land. When all the paper work is ready, it is time to survey the land. You need to do this to know what you need to do to prepare the land. This is important so that you can start building your home. Does the land need clearing? Does it need leveling? Are there any potential drainage problems? These questions will help eliminate problems in the building of your dream home.

5. Come up with a plan. You should also have plan on how the property will look. Make sure that you consult a professional regarding this. This will ensure that the home you are building is safe and sturdy.

Building your own home is wonderful. You get to do what you want and you can be certain that no one else will have that exact kind of home. However, you have to think about other things. You need to be prepared. Bear in mind that it will take time before your home is done. This is why you have to be patient. You have to plan everything as well including the preparation of the land as well as the installation of different utilities such as water, sewer, utilities, etc..

As a Realtor and a Registered Forester I have some qualifications to write about buying and selling rural real estate primarily land. I have sold thousands of acres as a Realtor and managed hundreds of thousands as a Forester since 1973.

If you are considering buying rural land this article may help you with some good tips and information. The points below will give you some basic information and insight into what you need to look for as well as look out for in a land purchase.

Kind of Land. Do you want a farm, timberland, development potential, home site, hunting, agricultural use? One tract of land can rarely be all of these. Think what you plan and seek from there. Of course most tracts will have multiple uses but sometimes there are local use restrictions to consider.

Access. Hopefully you will have highway frontage for access. Some tracts may have only an easement. If so, look at the deeded easement layout and the width of it. A 20′ wide easement to a property that you later want to develop is a major negative if the county requires for instance a 50′ wide access easement for a street.

Utilities. Water of course is critical but for drinking and livestock. Is there an accessible waterline? If not what are the costs of a drilled well in the area and is there water quality problems in the ground water? Will there be water in a drought? Is there a creek for livestock and does it flow year around? Does anyone have the water rights? Is electric power available? Internet, cable, cell phone or land phone? Easy to check now, hard or impossible to get later.

Income from the property. As a forester I know the value of timber. When looking at rural land look closely at the timber and if there is a considerable amount have a local consulting forester appraise it for you. I have seen timber be worth as much as 3/4 of the value of an asking property price even in recent years. Make sure your purchase contract states that existing timber goes with the sale. It may have already been sold! Look at other income potential like hunting leases which can easily pay the property taxes and minor management costs. There are also agricultural leases. Always make sure the tract deed includes all mineral rights.

Making an Offer. Research what local sales have been on similar and nearby land. If you are not using a buyer representation Realtor you might want to consider one. Usually their fee is paid from the seller’s funds but not always so verify this. Check to see if land values are going up on down in the area. Allow yourself an inspection time and right to go on to the property by yourself or others you may hire to make inspections. Give yourself a way out of the contract if inspections fail. Make sure timber and minerals are included. Don’t make a low ball trying to steal it offer, you will just make the seller mad. Make a fair workable offer and go from there.

Closing. Use a real estate attorney to check title and close. They will know what to look for in deeds, easements and liens on the property. Ask the seller any questions you may have come up with and if they have any reports, old plats and maps that you can have. Ask about the history of the land before its lost as you may never see the seller again if they are moving away.

Planning to purchase or finance Commercial or Industrial Real Estate? Shopping Center? Office Building? Restaurant/Banquet property? Parking Lot? Storefront? Gas Station? Manufacturing facility? Warehouse? Logistics Terminal? Medical Building? Nursing Home? Hotel/Motel? Pharmacy? Bank facility? Sports and Entertainment Arena? Other?

A KEY to investing in commercial real estate is performing an adequate Due Diligence Investigation to assure you know all material facts to make a wise investment decision and to calculate your expected investment yield.

The following checklists are designed to help you conduct a focused and meaningful Due Diligence Investigation.

Basic Due Diligence Concepts:

Commercial Real Estate transactions are NOT similar to large home purchases.

Caveat Emptor: Let the Buyer beware.

Consumer protection laws applicable to home purchases seldom apply to commercial real estate transactions. The rule that a Buyer must examine, judge, and test for himself, applies to the purchase of commercial real estate.

Due Diligence: “Such a measure of prudence, activity, or assiduity, as is proper to be expected from, and ordinarily exercised by, a reasonable and prudent [person] under the particular circumstances; not measured by any absolute standard, but depending upon the relative facts of the special case.” Black’s Law Dictionary; West Publishing Company.

Contractual representations and warranties are NOT a substitute for Due Diligence.

Breach of representations and warranties = Litigation, time and money.

WHAT DILIGENCE IS DUE?

The scope, intensity and focus of any due diligence investigation of commercial or industrial real estate depends upon the objectives of the party for whom the investigation is conducted. These objectives may vary depending upon whether the investigation is conducted for the benefit of (i) a Strategic Buyer (or long-term lessee); (ii) a Financial Buyer; (iii) a Developer; or (iv) a Lender.

If you are a Seller, understand that to close the transaction your Buyer (and its Lender) must address all issues material to its objective – some of which require information only you, as Owner, can adequately provide.

GENERAL OBJECTIVES:

(i) A “Strategic Buyer” (or long-term lessee) is acquiring the property for its own use and must verify that the property is suitable for that intended use.

(ii) A “Financial Buyer” is acquiring the property for the expected return on investment generated by the property’s income stream, and must determine the amount, velocity and durability of the revenue stream. A sophisticated Financial Buyer will likely calculate its yield based upon discounted cash-flows rather than the must less precise capitalization rate (“cap rate”), and will need adequate financial information to do so.

(iii) A “Developer” is seeking to add value by changing the character or use of the property – usually with a short-term to intermediate-term exit strategy to dispose of the property; although, a Developer might plan to hold the property long term as Financial Buyer after development or redevelopment. The Developer must focus on whether the planned change is character or use can be accomplished in a cost-effective manner. A developer conducting due diligence will focus on issues involving market demand, access, use and finances.

(iv) A “Lender” is seeking to establish two basic lending criteria:

1. “Ability to Repay” – The ability of the property to generate sufficient revenue to repay the loan on a timely basis; and

2. “Sufficiency of Collateral” – The objective disposal value of the collateral in the event of a loan default, to assure adequate funds to repay the loan, carrying costs and costs of collection in the event forced collection becomes necessary.

The amount of diligent inquiry due to be expended (i.e. “Due Diligence”) to investigate any particular commercial or industrial real estate project is the amount of inquiry required to answer each of the following questions to the extent relevant to the objectives of the party conducting the investigation:

I. THE PROPERTY:

1. Exactly what PROPERTY does Purchaser believe it is acquiring?

(a) Land?

(b) Building?

(c) Fixtures?

(d) Other Improvements?

(e) Other Rights?

(f) The entire fee title interest including all air rights and subterranean rights?

(g) All development rights?

2. What is Purchaser’s planned use of the Property?

3. Does the physical condition of the Property permit use as planned?

(a) Commercially adequate access to public streets and ways?

(b) Sufficient parking?

(c) Structural condition of improvements?

(d) Environmental contamination?

(i) Innocent Purchaser defense vs. exemption from liability

(ii) All Appropriate Inquiry

4. Is there any legal restriction to Purchaser’s use of the Property as planned?

(a) Zoning?

(b) Private land use controls?

(c) Americans with Disabilities Act?

(d) Availability of licenses?

(i) Liquor license?

(ii) Entertainment license?

(iii) Outdoor dining license?

(iv) Drive through windows permitted?

(e) Other impediments?

5. How much does Purchaser expect to pay for the property?

6. Is there any condition on or within the Property that is likely to increase Purchaser’s effective cost to acquire or use the Property?

(a) Property owner’s assessments?

(b) Real estate tax in line with value?

(c) Special Assessment?

(d) Required user fees for necessary amenities?

(i) Drainage?

(ii) Access?

(iii) Parking?

(iv) Other?

7. Any encroachments onto the Property, or from the Property onto other lands?

8. Are there any encumbrances on the Property that will not be cleared at Closing?

(a) Easements?

(b) Covenants Running with the Land?

(c) Liens or other financial servitudes?

(d) Leases?

9. Leases?

(a) Security Deposits?

(b) Options to Extend Term?

(c) Options to Purchase?

(d) Rights of First Refusal?

(e) Rights of First Offer?

(f) Maintenance Obligations?

(g) Duty on Landlord to provide utilities?

(h) Real estate tax or CAM escrows?

(i) Delinquent rent?

(j) Pre-Paid rent?

(k) Tenant mix/use controls?

(l) Tenant exclusives?

(m) Tenant parking requirements?

(n) Automatic subordination of Lease to future mortgages?

(o) Other material Lease terms?

10. New Construction?

(a) Availability of construction permits?

(b) Utilities?

(c) NPDES (National Pollutant Discharge Elimination System) Permit?

(i) Phase 2 effective March 2003 – Permit required if earth is disturbed on one acre or more of land.

(ii) If applicable, Storm Water Pollution Prevention Plan (SWPPP) is required.

II. THE SELLER:

1. Who is the Seller?

(a) Individual?

(b) Trust?

(c) Partnership?

(d) Corporation?

(e) Limited Liability Company?

(f) Other legally existing entity?

2. If other than natural person, does Seller validly exist and is Seller in good standing?

3. Does the Seller own the Property?

4. Does Seller have authority to convey the Property?

(a) Board of Director Approvals?

(b) Shareholder or Member approval?

(c) Other consents?

(d) If foreign individual or entity, are any special requirements applicable?

(i) Qualification to do business in jurisdiction of Property?

(ii) Federal Tax Withholding?

(iii) US Patriot Act compliance?

5. Who has authority to bind Seller?

6. Are sale proceeds sufficient to pay off all liens?

III. THE PURCHASER:

1. Who is the Purchaser?

2. What is the Purchaser/Grantee’s exact legal name?

3. If Purchaser/Grantee is an entity, has it been validly created and is it in good standing?

(a) Articles or Incorporation – Articles of Organization

(b) Certificate of Good Standing

4. Is Purchaser/Grantee authorized to own and operate the Property and, if applicable, finance acquisition of the Property?

(a) Board of Director Approvals?

(b) Shareholder or Member approval?

(c) If foreign individual or entity, are any special requirements applicable?

(i) Qualification to do business in jurisdiction of the Property?

(ii) US Patriot Act compliance?

(iii) Bank Secrecy Act/Anti-Money Laundering compliance?

5. Who is authorized to bind the Purchaser/Grantee?

IV. PURCHASER FINANCING:

A. BUSINESS TERMS OF THE LOAN:

What loan terms have the Purchaser, as Borrower, and its Lender agreed to?

(a) What is the amount of the loan?

(b) What is the interest rate?

(c) What are the repayment terms?

(d) What is the collateral?

(i) Commercial real estate only?

(ii) Real estate and personal property together?

(e) First lien? A junior lien?

(f) Is it a single advance loan?

(g) A multiple advance loan?

(h) A construction loan?

(i) If it is a multiple advance loan, can the principal be re-borrowed once repaid prior to maturity of the loan; making it, in effect, a revolving line of credit?

(j) Are there reserve requirements?

(i) Interest reserves?

(ii) Repair reserves?

(iii) Real estate tax reserves?

(iv) Insurance reserves?

(v) Environmental remediation reserves?

(vi) Other reserves?

(k) Are there requirements for Borrower to open business operating accounts with the Lender? If so, is the Borrower obligated to maintain minimum compensating balances?

(l) Is the Borrower required to pledge business accounts as additional collateral?

(m) Are there early repayment fees or yield maintenance requirements (each sometimes referred to as “pre-payment penalties”)?

(n) Are there repayment blackout periods during which Borrower is not permitted to repay the loan?

(o) Is there a Loan Commitment fee or “good faith deposit” due upon Borrower’s acceptance of the Loan Commitment?

(p) Is there a loan funding fee or loan brokerage fee or other loan fee due Lender or a loan broker at closing?

(q) What are the Borrower’s expense reimbursement obligations to Lender? When are they due? What is the Borrower’s obligation to pay Lender’s expenses if the loan does not close?

B. DOCUMENTING THE COMMERCIAL REAL ESTATE LOAN

Does Purchaser have all information necessary to comply with the Lender’s loan closing requirements?

Not all loan documentation requirements may be known at the outset of a transaction, although most commercial real estate loan documentation requirements are fairly typical. Some required information can be obtained only from the Seller. Production of that information to Purchaser for delivery to its lender must be required in the purchase contract.

As guidance to what a commercial real estate lender may require, the following sets forth a typical Closing Checklist for a loan secured by commercial real estate.

Commercial Real Estate Loan Closing Checklist

1. Promissory Note

2. Personal Guaranties (which may be full, partial, secured, unsecured, payment guaranties, collection guaranties or a variety of other types of guarantees as may be required by Lender).

3. Loan Agreement (often incorporated into the Promissory Note and/or Mortgage in lieu of being a separate document)

4. Mortgage [sometimes expanded to be a Mortgage, Security Agreement and Fixture Filing]

5. Assignment of Rents and Leases

6. Security Agreement

7. Financing Statement (sometimes referred to as a “UCC-1”, or “Initial Filing”)

8. Evidence of Borrower’s Existence In Good Standing; including

(a) Certified copy of organizational documents of borrowing entity (including Articles of Incorporation, if Borrower is a corporation; Articles of Organization and written Operating Agreement, if Borrower is a limited liability company; Certified copy of trust agreement with all amendments, if Borrower is a land trust or other trust; etc.)

(b) Certificate of Good Standing (if a corporation or LLC) or Certificate of Existence (if a limited partnership) or Certificate of Qualification to Transact Business (if Borrower is an entity doing business in a State other than its State of formation)

9. Evidence of Borrower’s Authority to Borrow; including

(a) a Borrower’s Certificate;

(b) Certified Resolutions

(c) Incumbency Certificate

10. Satisfactory Commitment for Title Insurance (which will typically require, for analysis by the Lender, copies of all documents of record appearing on Schedule B of the title commitment which are to remain after closing), with required commercial title insurance endorsements, often including:

(a) When available, Affirmative Creditors Rights Endorsement (extending coverage over policy exclusion 7 and policy exclusions 3(a) and 3(d) as they relate to creditor’s rights matters)

(b) ALTA 3.1 Zoning Endorsement modified to include parking

(c) ALTA Comprehensive Endorsement 1

(d) Location Endorsement (street address)

(e) Access Endorsement (vehicular access to public streets and ways)

(f) Contiguity Endorsement (the insured land comprises a single parcel with no gaps or gores)

(g) PIN Endorsement (insuring that the identified real estate tax permanent index numbers are the only applicable PIN numbers affecting the collateral and that they relate solely to the real property comprising the collateral)

(h) Usury Endorsement (insuring that the loan does not violate any prohibitions against excessive interest charges)

(i) other title insurance endorsements applicable to protect the intended use and value of the collateral, as may be determined upon review of the Commitment for Title Insurance and Survey or arising from the existence of special issues pertaining to the transaction or the Borrower.

11. Current ALTA Survey (3 sets), [typically prepared in accordance with 2011 Minimum Standard Detail for ALTA/ACSM Land Title Surveys, certified to the lender, Buyer and the title insurer.

12. Current Rent Roll

13. Certified copy of all Leases (3 sets)

14. Lessee Estoppel Certificates

15. Lessee Subordination, Non-Disturbance and Attornment Agreements [sometimes referred to simply as “SNDAs”].

16. UCC, Judgment, Pending Litigation, Bankruptcy and Tax Lien Search Report

17. Appraisal (must comply with Title XI of FIRREA (Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended)

18. Environmental Site Assessment Report (sometimes referred to as Environmental Phase I and/or Phase 2 Audit Reports)

19. Environmental Indemnity Agreement (signed by Borrower and guarantors)

20. Site Improvements Inspection Report

21. Evidence of Hazard Insurance naming Lender as the Mortgagee/Lender Loss Payee; and Liability Insurance naming Lender as an “additional insured” (sometimes listed as simply “Acord 27 and Acord 25, respectively)

22. Legal Opinion of Borrower’s Attorney

23. Credit Underwriting documents, such as signed tax returns, property operating statements, etc. as may be specified by Lender

24. Compliance Agreement (sometimes also called an Errors and Omissions Agreement), whereby the Borrower agrees to correct, after closing, errors or omissions in loan documentation.

It is useful to become familiar with the Lender’s loan documentation requirements as early in the transaction as practical. The requirements will likely be set forth with some detail in the lender’s Loan Commitment – which is typically much more detailed than most loan commitments issued in residential transactions.

Conducting the Due Diligence Investigation in a commercial real estate transaction can be time consuming and expensive in all events.

If the loan requirements cannot be satisfied, it is better to make that determination during the contractual “due diligence period” – which typically provides for a so-called “free out” – rather than at a later date when the earnest money may be at risk of forfeiture or when other liability for failure to close may attach.

CONCLUSION

Conducting an effective due diligence investigation in a commercial real estate transaction to discover all material facts and conditions affecting the Property and the transaction is of critical importance.

Unlike owner occupied residential real estate, when a house can nearly always be occupied as the purchaser’s home, commercial real estate acquired for business use or for investment is impacted by numerous factors that may affect its use and value.

The existence of these factors and their affect on a Purchaser’s ability to use the Property for its intended use and on the Purchaser’s projected investment yield can only be discovered through diligent investigation and attention to detail.

The circumstances of each transaction will determine what degree of diligence is required. The level of diligence required under the circumstances is the diligence that is due.

Exercise Due Diligence.

Buying a property entails a lot of things but it is a priceless asset if you know how to go about it. The market value of lots increases periodically so it is always wise to buy now and resell it later on. Or if you plan to build a house later, you can leave it as is for now.

Before you buy a property ponder on what you want to do with the property. Either you want a residential house, a commercial building or an apartment that you can earn from. These are important considerations that will help you decide the size and location of the lot you are going to buy.

There are other factors that you have to take into account before buying a property. Check the present market value of the lot through the local assessor and compare with what the lot owner or agent has supplied to you.

Determine the size of the lot you want so you can know if you can afford to pay for the property. Although you can always have the option for financing, it is always good to have funds set aside for the purchase. If you plan to have it financed then be ready with the requirements needed.

The location of the property is of great importance as well. A residential or commercial building should be accessible to schools, malls, transportation and commercial areas. This will give you convenience of everything when you decide to relocate and live in the purchased property.

To find a good location check your local newspaper for possible lots for sale in the area that you prefer. You may also check with your bank for foreclosed property that they are offering and may be purchased through a bank loan. Foreclosed properties are great deals as they are priced lower than the present market value of the property.

Survey your prospective lot before even thinking of purchasing it. This makes sure that every boundary is correct and accurate. Also make sure to look into some vital information regarding the lot – owner’s information, lot description, tax information, map, etc.

Avoid making mistakes in buying a property instead learn the tricks of the trade. It can be very hard and complicated but through patience eventually, you will benefit from it. This is about investing on a property that will secure your future and provide you a place of your own.

Land remains static while population increases. In Africa, land is becoming infertile, while desertification and effects of global warming threatens the continent. The continent’s raw materials are dwindling. Where would Africa turn for solutions?

For many years, the emerging independent states saw agriculture to be the continent’s development magic. They were unable to see that it was also possible for agriculture to be Africa’s curse. They would have to buy agricultural machinery, fertilizers, and animal drugs from the developed world and sells their produce to the developed world at a throw away price.

It is now even worse because land is becoming an explosive source of conflicts that threaten to tear African countries apart. The same land has become infertile and there is threat of desertification.

Due to global warming, farming has become unpredictable activity. There is either long dry period or too much rain. Pumping money into agriculture is a very likely source of frustrations for peasant farmers who makes up large part of Africa’s populations.

African countries have also for along time relied on export of raw materials. The revenue they earned from the raw materials has not helped much and they are dwindling. Africa has been a source for diamonds, gold, copper, oil and other minerals for the developed world. Africa’s answer for its development aspirations lies in technology. The fact that Africa population is increasing while land is not mean that other people would have to work elsewhere to earn a livelihood. And the educated youth’s hope is in technology.

Africa also faced with dwindling resource base cannot afford to be wasteful. Technology that would reduce waste and enhance recycling effort should be embraced by all African countries. African countries need technology to add value to their resources before exporting.

The bulk of world trade today is technology based. Africa and its growing youthful and educated population cannot afford to be left behind as the world grapples for a share of revenue from the technology trade. Quoting Allan Ngugi’s article published in the Daily Nation of March 12, 2008 entitled, “We should be thinking industries,” President Museveni during an East African Legislative assembly session said. “Many people in East Africa still depend on Agriculture rather than being in industry and services. East Africa cannot provide enough jobs for the increasing educated population. We shall not earn enough foreign currency as we could (with industrial production) and we shall not collect enough taxes.”

Technology will not only create jobs but will help Africa’s countries handle problems brought about by desertification and global warming.

At Common Law a landowner has the right to control the air space above the land he owns subject to statutory restrictions for zoning, aviation and the like. As such, landowners may create one or more air space parcels above their land. Once this is done, the title to each air space parcel may then be dealt with separately from the other titles. Since an air space parcel is treated as land, it may be subdivided into strata lots with common property.

The vertical division of real property is based on the legal conception of land as a volume of space with boundless height and depth. As the density of building in urban areas increases, fewer sites are available for new construction and land values escalate. This trend has produced a growing interest in developing air rights. The concept of land as a three-dimensional entity underlies the land title scheme pretty much everywhere in North America, which allows air space parcels to be created, transferred, mortgaged, leased and subdivided.

Since air space parcels still have a physical relationship to the land because air space rights are part of the land and the ownership of land, the Land Title Act (in British Columbia) as well as other statutes allow landowners to treat their air space as if it were land by depositing a survey of the air space above their land at the Land Title Office. Such survey is called an ‘Air Space Plan’. If the landowner keeps the underlying land but allows someone else to occupy the air space parcel, he becomes what it is commonly known as a ‘remainderman’.

Developers have used the air space parcel concept to construct mixed-use strata projects. This method is typically used where the same structure contains different uses. In effect developers create different air space parcels to contain single-use strata developments. By this means, the same complex may contain one or more separate strata plans, each having a different use. For example, one strata development may be residential while another is commercial. Although they share the same complex, each strata corporation controls a separate portion of the structure.

Virtually every air space development involves construction of a strata building over top of land or buildings owned by the developer as remainderman. It is very important to ensure that there are appropriate arrangements to compel the remainderman to maintain the necessary physical support and related services to the air space parcel, even if the remainderman’s property suffers damages. The major concern is that the creation and unregulated sale of such vacant airspace strata lots will, at some future date, through fraud or financial difficulties of a developer, result in the purchasers of such lots being left with vacant airspace strata lots which have little value, as the contracted building will not be built or not completed.

In each air space strata development, furthermore, there should be one or more written agreements between the strata corporation as the occupier of the air space and the remainderman, who is likely the developer. These agreements deal with obligations of support, access, provision of utilities, insurance and other important matters. Finally, the owner of an air space strata lot must be familiar with the relevant agreements between the strata corporation and the remainderman. Since these agreements are usually complex, an owner should obtain legal advice when reviewing such agreements.

Luigi Frascati

While it’s pretty common for a person to sell a house at some point in his or her life, it’s much more rare to sell land that doesn’t have any improvements. These differences are important to take into consideration if you find yourself needing to sell land, because the strategies for selling the two types of properties are quite different, particularly if you need to know how to sell land fast.

Selling a house is not the same as selling land

Let’s think about some of the major differences between the two:

• Fewer people are looking to buy land than houses Land just isn’t as popular as houses are. That’s pretty obvious, since most real estate transactions are made by people looking for a place to live, not an investment or a place to build. This is important to keep in mind, because simply putting up a sign or running a Craigslist ad won’t cut it: it may never be seen by someone looking for what you have to offer!
• How do you “show” land? Everyone knows what it means to show a house, and it’s the basic thing you do at the beginning of the selling process. But what about for land? Showing land is a lot less likely to cause a potential buyer to form an emotional connection with the property than if the property was a house, simply because it’s easier to imagine oneself living at the new place if the house actually exists!
• Harder to motivate agents The simple fact is that any given piece of land would almost always be worth more if it had a house sitting on it. So, real estate agents will gain a smaller commission from selling your land than from selling properties nearby that have improvements. Now of course, most agents try to do their very best for their clients, but it would be difficult for anyone to completely fight off the disincentive of a smaller paycheck.

The internet is your best friend

It’s no secret that a ton of real estate business is done online, but how should you use this knowledge to quickly sell your land? Well, as we discussed earlier, the number of people actively looking to buy land is relatively small, so you need to get your property out to a wide audience. This is easy to do online, with free sites like Zillow and FSBO being great places to submit your property. However, there are also special investor portals online that let you put your property right in front of the eyes of people who actually buy and sell land for a living! These folks look at properties all the time and make their decisions about whether or not to buy based on specific criteria, so it’s best to provide them with as much information about your property as possible. Oftentimes you can get an investor to make you an offer site unseen. Now that’s how to sell land!

Where do you find these investor portals? You can search Google for terms like “sell land fast” and find plenty of land investors ready to take a look. Look for ones who offer to cover closing fees and pay you cash.

I hope this has been informative, and best of luck selling your property!

When you plan to buy a lot, you should not take every step of the buying process for granted. This can really be incredibly costly, considering the price of the lot and the further development you plan to do. If you are having thoughts on getting a lot for your future business endeavors, there are some basic questions that you have to ask yourself. In this way, you can realize your true reason for this investment.

Normally, the very first thing you want find out is what prompted you to buy this lot? You need to identify the main reason for choosing the particular lot. Know your interest, if you want it for commercial purposes or just for personal use only. There are so many reasons you can think of but you have to be specific with your intentions.

Aside from that, determining the property’s investment value is also necessary. It really important for you to know the figures, even if you are not using it for commercial purposes since you might have plans on selling it in the future. Hence, you can easily assume a rough estimate of how much you can benefit or profit from the investment you made. This will make you realize how worthwhile the investment you made when you bought the lot.

Of course, you need to make sure if you can afford to buy the lot. It is inevitable that you will ask for financial assistance so you will apply for a mortgage. The crucial part on this step is, knowing if you can pay off your credit until the loan period expires. This is normally the problem of most homeowners since they fail to settle their financial obligations. Thus, they end up getting a foreclosure. And this is the last thing you would want to happen to you.

Do not forget to identify if the lot that you are eying for is already surveyed. One of the hardest parts in land buying is to determine if you made a good deal out of it. This is where the survey process comes first. You need the help of a reliable surveyor to check out the place and tell you the benefits and pitfalls of the land. This will help you evaluate if it is a good deal or not.

The last thing you have to identify is the zoning restrictions of the area. This is very important if you have plans on constructing a business establishment on it in the future. There are areas where building commercial infrastructures are not allowed. Know the things that are allowed and not allowed in that certain place so you will know what to do with it in the long run.