New house has 30 year 50% uplift to vendors clause - how do I get round it?

Question

A house I am about to by with a large garden (1/2 acre) has had a 30 year cluase placed on the land that 50% of up lift (profit) will have to be paid to the people we are buying off (who added the clause) if within the 30 years we sell the land for profit - how could I get round this?

Answer 1

You can't get around it if you agree to it - they want to ensure that the land remains and doesn't get turned into a subdivision.

Your options:

1) Refuse to sign it, strike it out of the contract, and see if they'll still sell it to you.

2) I would modify it, why should they, who already made profit, get a second profit out of it? Besides, if you improve the house, that's your $$, not theirs, and any profit can be from home improvements.

Honestly, I would NEVER agree to this, because they're not selling the home free and clear - BTW, you may have a problem getting a mortgage with this type of clause as well.

Answer 2

That's a ridiculous clause. The seller is being greedy. I'd negotiate or find another home.