The Model Conservation Easement Donation Agreement spells out the steps in the easement process and the commitments and expectations of the land trust and landowner. The provisional second edition is complete and ready for use. It addresses IRS Notice 2017-10 and Land Trust Alliance advisories regarding pass-through entities and tax shelters. Users are encouraged to submit comments to help the Association in finalizing the edition.
The Model Conservation Transaction Addendum is designed for use with standard Pennsylvania Association of Realtors purchase and sale agreement forms. It addresses issues that commonly arise with conservation acquisition projects.
A purchase option assures the option holder of the right to purchase property at a certain price within a certain time period but without an obligation to do so. In granting an option, the landowner gives up the right to sell freely during the option period.
The holder of a right of first offer has the opportunity to purchase land at the landowners’ asking price before other prospective purchasers have an opportunity. An alternative configuration has the holder, rather than the landowners, making the first offer. If the right of first offer is coupled with a right of first negotiation, the holder has the further benefit of time for counterproposals and seeking mutually agreeable terms with the landowners before other bidders make competing offers. This model provides for both rights.
If an owner intends to accept an offer for the purchase of his or her land, the holder of a right of first refusal has the opportunity to purchase the land at the price and terms offered by the prospective buyer. If the holder of the right declines to purchase on those exact terms, the owner is then free to sell to the prospective buyer. If an owner is willing to commit to providing such a right to an organization, this model is a tool to document and ensure the enforceability of the commitment.