One Pennsylvania school district was ready to seal a deal with a real estate developer who wished to purchase a 20-acre parcel of land, but, the deal unexpectedly fell through. Coincidentally, the district was able to strike a similar deal with another real estate developer almost instantaneously.
The deal centered on land located in Lebanon County. The school district was ready to go forward with a $530,000 offer from a developer, whose main development is adjacent to the land. However, both sides hit a snag over a sewer tap-in fee. The developer wanted the school district to cover the expenses tied in with the fee, but one district official said they simply couldn’t assume that kind of risk.
That conflict over a potentially costly provision was enough to cause the deal to fall apart.
However, another developer stepped in right when the previous negotiation failed and offered more money to purchase the property up front. The man, who lives mainly in Philadelphia and has recently focused on purchasing and rehabilitating local properties, offered $550,000 for the land. The man said that he had already taken a look at the property before the initial offer was made.
Still, the land purchase could present a problem. The land is only accessible by roads belonging to the adjacent housing development, owned by the developer that pulled out of the previous deal. Those conditions could lay the groundwork for possible complications down the road.
Also, the sale of the property hinges on gaining all the necessary approvals from the township and county.
Buying property for the purpose of developing it can be a complex process. If conflict arises between the two developers over the use of the private roads, it could throw a hitch in the plans. All these issues can be accounted for during the acquisition process.
Source: Lebanon Daily News, “Buyer for Palmyra School District land backs out, but another steps forward,” Chris Sholly, Jan. 12, 2013