PRACTICE

J. Purchasing Land

When the land trust buys land, conservation agreements or other real property, it obtains a qualified independent appraisal to justify the purchase price. However, the land trust may choose to obtain a short narrative from a qualified real estate professional in the limited circumstances when a property has a very low economic value or a full appraisal is not feasible before a public auction. In limited circumstances where acquiring above the appraised value is warranted, the land trust documents the justification for the purchase price and that there is no impermissible private benefit. If negotiating for a purchase below the appraised value, the land trust ensures that its communications with the landowner are honest, forthright and recorded.