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Expert Analysis

Seller Incentives Returning To Fla. Homebuilding Market

Law360, New York (June 3, 2014, 10:21 AM EDT) -- With the housing market for new construction rebounding in certain parts of central Florida, we are seeing more transactions whereby landowners are selling property to homebuilders under circumstances where the seller wants what is sometimes called a "participation incentive," which is the right of the seller to participate in the profits that the builder is expected to realize in connection with the future sale of completed homes built on lots within the property. This arrangement, which was not uncommon during the land boom in the early 2000s, was no longer feasible once the recession hit, but is now beginning to recur in today's market, especially in locations where new housing is in higher demand....

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