While the Androscoggin Land Trust has the limited ability to purchase land, there are several techniques for a landowner to consider that gives the trust more flexibility in return for some compensation to the landowner.
BARGAIN SALE: The landowner sells their land for less than the fair market value. When the land is sold at less than the appraised market value, the bargain is considered a tax-deductible charitable donation. The bargain gift must be recorded by a qualified appraiser for the landowner to receive a tax deduction.
INSTALLMENT SALE: The landowner agrees to accept several payments over time rather than in one lump sum. This gives the ALT more time to raise the necessary funds.
OPTION TO PURCHASE: A landowner may choose to enter into an Option to Purchase agreement with the ALT. With an option, both parties agree on a sale price and the ALT is given a specified amount of time to decide whether or not to exercise the option. This option gives the ALT time to raise the necessary funds and ensures the land cannot be sold to anyone else during the option period.
RIGHT OF FIRST REFUSAL: For landowners who are not ready to sell their land immediately, they may consider granting the ALT the first opportunity to buy it in the future. The trust can decide to match any bona fide offer, but is not obligated to purchase the land.
Disclaimer: The material contained in this website is provided for information purposes only and is not intended to constitute legal advice. Please contact your attorney with any legal questions.
