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Covenant - Building on Land

Covenant - Building on Land

I have a client who is in the process of selling green belt land (probably post 5/4/08) and they want to include within the agreement a 25 year covenent saying if the land is built on and sold within that 25 years, then they are to receive a share of those profits. They have asked me what percentage of profits they should go for - ie what would be normal in such circumstances.

Any guidance would be much appreciated.

Thank you.
Paul Booth

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By Anonymous
05th Mar 2008 21:29

Solicitor
I would of thought a solicitor would have more idea of the answer to this than an accountant

I don't think you would want to % to be too high as it might put people off purchasing the land - possible 15% - 20%

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