Land Investment Protection Tips

Summary

To protect your investment in a land purchase, draft a formal agreement outlining your share and responsibilities. Conduct due diligence to verify legal documents and ensure subdivision plans are approved. Protect against unauthorized sales with a co-ownership agreement and register your interest on the land title. Be aware of risks like market fluctuations, regulatory changes, and potential bankruptcy of the owning corporation. Secure your investment with a legal mortgage or lien and establish a joint venture agreement for asset division in case of bankruptcy.

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what if they sell the land behind my back
To protect your investment from being sold without your consent, consider the following steps:
- Co-Ownership Agreement: Include clauses that require unanimous consent for any sale.
- Right of First Refusal: Secure the right to purchase the land before it's offered to others.
- Title Registration: Ensure your ownership interest is registered on the land title.
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What other risks are there for this investment to go flop
Here are some additional risks to consider:
- Market Fluctuations: Real estate values can change, impacting your potential returns.
- Regulatory Changes: New laws or zoning changes may affect subdivision plans.
- Financial Risks: If the primary owner defaults on loans, it may affect your investment.
- Environmental Issues: Unexpected problems like soil contamination could arise.
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what if the coorperation who owns the land goes bankrupt
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If the corporation owning the land goes bankrupt, consider these points:
- Secured Creditor Status: Ensure your investment is protected by having a secured interest, like a mortgage, on the land.
- Bankruptcy Claims: You might need to file a claim in bankruptcy court to recover your investment.
- Joint Venture Agreement: Clarify terms on asset division in case of bankruptcy.
Would you like more details on any of these points?
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If the corporation owning the land goes bankrupt, it's crucial to protect your investment. Consider securing your interest with a legal mortgage or lien, which gives you priority over unsecured creditors. Also, a solid joint venture agreement can help clarify asset division during bankruptcy. Would you like more details on any of these points?