[WSBARP] Development Permitting by Buyer Prior to a Closing Date

[Mark Funke]

James:

Some ideas for you:

1) only buyer to sign financial responsibility form (for example, such form is required in City of Seattle);
2) no earnest money released (in the event deal dies) unless proof is provided that all permitting fees were paid;
3) restrict rezone; change of use; agreements affecting title.. etc. create a list of what they can’t do - in some instances this may be very important, for example land in an agricultural restriction that buyer wants to develop;
4) indemnity from buyer
5) if the permits have value to Seller, then in the event deal dies Buyer to assign all rights in them to Seller (same with Buyer’s due diligence materials, surveys, architectural drawings etc.)

Be careful about linking the closing date to obtaining permits.. it’s not unheard of for developers to simply fail to pay their final permit fees and thereby intentionally delay issuance of the permit or take other inaction to throttle the process. Always include a drop-dead date for closing.

Thanks,

- Mark



__
Mark K. Funke, Attorney
P.206-632-1535
mark at funkelaw.com
Office: 4105 E. Madison St. #210
Post:   4111 E. Madison St. #272
	   Seattle, Washington 98112





> On Sep 6, 2018, at 2:17 PM, Jim Hoff <listserv at corelaw.com> wrote:
> 
> To date, I’ve been successful discouraging any client selling property to avoid cooperating with permitting for a developer prior to a sale closing.  I now have a client who would like to do this, however, so I’m doing my best to anticipate potential pitfalls and liabilities as a basis to withhold consents.  Does anyone have any experience crafting PSA provisions for this scenario?  
>  
> James B. Hoff
> CoRE Law, PLLC
> 3030 W. Commodore Way, Suite A-302
> Seattle, WA 98199
> Telephone: (206) 443-1616
> Fax: (206) 443-2626
> Mobile: (206) 465-1000
> Email: jhoff at corelaw.com <mailto:jhoff at corelaw.com>
> Website: www.corelaw.com <http://www.corelaw.com/>
>  
>  
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com <mailto:WSBARP at lists.wsbarppt.com>
> http://mailman.fsr.com/mailman/listinfo/wsbarp <http://mailman.fsr.com/mailman/listinfo/wsbarp>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180906/c19c68a9/attachment.html>