Common use of Zoning Contingency Clause in Contracts

Zoning Contingency. If the buyer needs permitting before purchasing the property. For example, the buyer needs to get approval to put a restaurant on the property before it can purchase. The buyer may enter any type of contingency to accommodate their needs and with the consent of the seller. Environmental Contingency – More common for retail properties, soil and environmental testing will need to be completed (known as a “Phase 1 Environmental Assessment”). Step 5 – The Closing The closing is when the parties meet and the financial transaction is completed. This is commonly done at a lawyer’s office or title company that handles the required documents and verifies the funds have been sent and received while administering the new deed. If there are any real estate agents, they will be owed their commission as written in their listing agreement. After the closing, the seller will have been paid-in-full, with the buyer receiving the title that will be filed by the buyer or handed off to their attorney to be filed with the Registry of Deeds. Environmental Contingency – More common for retail properties, soil and environmental testing will need to be completed (known as a “Phase 1 Environmental Assessment”). Step 6 – Filing the Deed If the property is in a registered county, there should be a recorder or registry of deeds office where all the local property records are located. If you choose to file the deed there may be a transfer or sales tax (should have been administered during the closing) along with the buyer being required to sign the deed in the presence of a notary. After the deed has been filed and accepted the property is in the name of the buyer. What is a 1031 Exchange? A 1031 exchange specifically refers to the Internal Revenue Code (IRC) Section 1031 that allows an owner of real estate to sell their property and not pay any tax if they purchase a “like-kind” property after the closing. What does “Like-Kind” mean? According to IRC 1.1031(a)-1(b) “like-kind” is more of the “nature” and “character” of the property than its grade or quality. For example, if the property sold is a 4-unit apartment building then most likely under a 1031 exchange the seller will be required to buy residential housing. The two (2) properties must have generic similarities. Required Time Periods (After the Closing Date) 45 Days – The seller must identify the property they want to purchase. 180 Days – The seller must have completed the purchase of the property. IRS Definition 26 CFR § 1.1031(a)-1 Section 1031(a)(1) provides an exception from the general rule requiring the recognition of gain or loss upon the sale or exchange of property. Under section 1031(a)(1), no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment. Under section 1031(a)(1), property held for productive use in a trade or business may be exchanged for property held for investment. Similarly, under section 1031(a)(1), property held for investment may be exchanged for property held for productive use in a trade or business. Samples Use the samples below that are modified agreements from online resources such as State real estate commissions and agency websites. Sample 1 Download: Adobe PDF Sample 2 Download: Adobe PDF Sample 3 Download: Adobe PDF How to Write Download: Adobe PDF, Microsoft Word (.docx), Open Document Text (.odt) Section I. The Parties (1)

Zoning Contingency. If the buyer needs permitting permission before purchasing the property. For example, the buyer needs to must get approval to put a restaurant on the property before it can purchasebuy. The buyer may can enter any type kind of contingency to accommodate meet their needs and with the consent of the seller. Environmental Contingency – contingencies - More common for retail properties, soil and environmental testing will need to tests must be completed (known as a “Phase 1 Environmental Assessment”). Step 5 – The Closing The closing closure is when the parties meet and the financial transaction is completed. This is commonly usually done at a lawyer’s office law firm or title company that handles the required necessary documents and verifies checks the funds have been sent and received while administering the under administration new deedged. If there are any real estate agents, they will be owed their commission as written in their listing agreement. After the closing, the seller will have been paid-in-full, with the buyer receiving the title that will be filed by the buyer or handed off to their attorney to be filed with the Registry of Deeds. Environmental Contingency – contingencies - More common for retail properties, soil and environmental testing will need to tests must be completed (known as a “Phase 1 Environmental Assessment”). Step 6 – - Filing the Deed deed If the property is in a registered county, there should be a recorder or registry of the deeds office where all the local property records are located. If you choose to file the deed there may be a transfer or sales tax (should have been administered during the closingclosure) along with the buyer being is required to sign the deed in the presence of a notary. After the deed has been filed and accepted the property is in the name of the buyer's name. What is a 1031 Exchange? A 1031 exchange specifically refers to the Internal Revenue Code (IRC) Section 1031 that 1031, which allows an owner of real estate to sell their property and not pay any tax if they purchase buy a “like-kind” kind property after the closing. What does “Like-Kind” Kind mean? According to IRC 1.1031(a)-1(b1.1031 (a)-1 (b) “like-kind” kind is more of the “nature” character and “character” nature of the property than its grade quality or quality. For example, if the property sold is a 4-unit apartment building complex then most likely probably under a 1031 exchange the seller will be required to buy residential housinghomes. The two (2) properties must have generic similarities. Required Time Periods time periods (After after the Closing Dateend date) 45 Days days – The seller must identify the property they want to purchase. 180 Days – days - The seller must have completed the purchase of the property. IRS Definition 26 CFR § 1.1031(a)-1 Section 1031(a)(1) provides an exception from the general rule requiring the recognition of gain or loss upon the sale or exchange of property. Under section 1031(a)(1), no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment. Under section 1031(a)(1), property held for productive use in a trade or business may be exchanged for property held for investment. Similarly, under section 1031(a)(1), property held for investment may be exchanged for property held for productive use in a trade or business. Samples Use the samples below that are modified agreements from online resources such as State real estate commissions and agency websites. Sample 1 Download: Adobe PDF Sample 2 Download: Adobe PDF Sample 3 Download: Adobe PDF How to Write Download: Adobe PDF, Microsoft Word (.docx), Open Document Text (.odt) Section I. The Parties (1)§

Zoning Contingency. If the buyer needs permitting before purchasing the property. For example, the buyer needs to get approval to put a restaurant on the property before it can purchase. The buyer may enter any type of contingency to accommodate their needs and with the consent of the seller. Environmental Contingency – More common for retail properties, soil and environmental testing will need to be completed (known as a “Phase 1 Environmental Assessment”). Step 5 – The Closing The closing is when the parties meet and the financial transaction is completed. This is commonly done at a lawyer’s office or title company that handles the required documents and verifies the funds have been sent and received while administering the new deed. If there are any real estate agents, they will be owed their commission as written in their listing agreement. After the closing, the seller will have been paid-in-full, with the buyer receiving the title that will be filed by the buyer or handed off to their attorney to be filed with the Registry of Deeds. Environmental Contingency – More common for retail properties, soil and environmental testing will need to be completed (known as a “Phase 1 Environmental Assessment”). Step 6 – Filing the Deed If the property is in a registered county, there should be a recorder or registry of deeds office where all the local property records are located. If you choose to file the deed there may be a transfer or sales tax (should have been administered during the closing) along with the buyer being required to sign the deed in the presence of a notary. After the deed has been filed and accepted the property is in the name of the buyer. What is a 1031 Exchange? A 1031 exchange specifically refers to the Internal Revenue Code (IRC) Section 1031 that allows an owner of real estate to sell their property and not pay any tax if they purchase a “like-kind” property after the closing. What does “Like-Kind” mean? According to IRC 1.1031(a)-1(b) “like-kind” is more of the “nature” and “character” of the property than its grade or quality. For example, if the property sold is a 4-unit apartment building then most likely under a 1031 exchange the seller will be required to buy residential housing. The two (2) properties must have generic similarities. Required Time Periods (After the Closing Date) 45 Days – The seller must identify the property they want to purchase. 180 Days – The seller must have completed the purchase of the property. IRS Definition 26 CFR § 1.1031(a)-1 Section 1031(a)(1) provides an exception from the general rule requiring the recognition of gain or loss upon the sale or exchange of property. Under section 1031(a)(1), no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment. Under section 1031(a)(1), property held for productive use in a trade or business may be exchanged for property held for investment. Similarly, under section 1031(a)(1), property held for investment may be exchanged for property held for productive use in a trade or business. Samples Use the samples below that are modified agreements from online resources such as State real estate commissions and agency websites. Sample 1 Download: Adobe PDF Sample 2 Download: Adobe PDF Sample 3 Download: Adobe PDF How to Write Download: Adobe PDF, Microsoft Word (.docx), Open Document Text (.odt) Section I. The Parties (1).