Tools That Buy Time

Land protection options range from fee acquisition to easements, donation, zoning, and historic designation. There are also a number of ways to temporarily protect land through options, right-of-first-refusal, leases and management agreements. These methods are used to buy time:

Option
Right-of-first-refusal
Lease
Management agreement

With today's high land prices, it is usually impossible to pay cash for an acquisition. At the same time, it is also nearly impossible to raise money without an actual proposed acquisition at hand. This requires action and a willingness to take calculated risks. One common tool is an option to purchase.

Option

Options buy time, which is vital when it comes to preservation. An option in its simplest form is the right to purchase a property at a specific price by a specified time. Under this method, the landowner and land trust contractually agree on a sale price at a set time in the future. If the necessary funds are raised in time, the option is exercised; if not, the option is allowed to expire. During the option period, the land cannot be sold to any other buyer. Options can be purchased at a negotiated fraction of the purchase price - often at no cost - and they do not obligate the land trust to purchase the land if funds cannot be raised.

Right-of-first-refusal

A right-of-first-refusal is an agreement between the landowner and the land trust that the land trust will have a specified amount of time to match an offer on the property before it is sold. This right can be purchased by the land trust or donated by the landowner; it can be used to prevent sale of the property to developers while funds are raised to buy the land. Some rights-of-first-refusal are permanent recorded instruments and are filed with the land deed in county records.

Lease

Land can also be protected temporarily by leasing it. Leases generally grant exclusive access rights to properties which can be useful assuring that historic and environmental resources will be well cared for. If a landowner is interested in preserving his/her land, but does not want to sell it or convey an easement, a lease is a good option.

Management Agreement

Management agreements operate very similarly to leases. In a management agreement, the land trust contracts to maintain portions of the property in exchange for access rights.

In today's competitive environment, a land trust must be innovative and prepared to act. Waiting for someone else will almost always result in another lost battlefield.

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