Conditions for Lot Sales

[wawota]

We are wondering if other urban municipalities are putting conditions on lot sales and if so how can they be enforced?  For example, if you sell a lot for a minimal amount with the condition that a house or business building must be built on it within a year, how can you enforce this once the title changes hands?  We don't want someone to buy up lots on speculation and sit on them without any construction happening.

[rm442]

The Village of Marsden has asked our lawyer to draft a Lot Purchase Agreement as we are developing a new subdivision. The Agreement will contain a deadline for completion of construction and a subsequent penalty (ie forfeiture of the lot or monthly fines) for missing the deadline. Once the agreement is signed, it is binding and you would have legal recourse. Previously, we had an agreement that I had drawn up but if anyone had challenged it, I'm not sure if it was binding. I recommend having your lawyer draft an agreement for you. Hope this helps.

Joanne Loy
Village of Marsden

[Cheryl Bailey]

We had our lawyer draft an offer to purchase agreement.  The town is selling the lots for a small amount but they must sign this agreement that states they will start construction within one year.  Title is not transferred until construction has started.  The lawyer suggested that title be transferred once construction starts such as a basement or foundation for one level construction as the bank will not give a mortgage if the title is not in their name.  I can send you a copy of the offer to purchase agreement that he drafted. 

Cheryl
Town of Eatonia

[villoflore]

We have a bylaw that states that a building of no less than 400 sq. ft be on the lot within 5 years.
We do not transfer the title until that is done.  If after 5 years there is no building the Village will consider the lot "not sold" and the person who wanted the lot forfeits any taxes he paid in the meantime.  We also have a tax incentive bylaw that gives 100% Mun. tax abatement the first year of new construction, 75% the second year, 50% the third year, 25% the fourth year.
If you would like copies of these let me know and I will fax them to you.

Muriel Stronski, Village of Loreburn