Under terms of a rolling option agreement, William Thomas Homes was required to take down finished lots under a predetermined time line. Because it owned a 50% stake in the land development company, it received the lots for half the retail markup.
The legal structures underpinning land-control deals can be confusing. We turned to a residential transaction expert, attorney Mathew A. Wyman, a partner with Cox, Castle & Nicholson LLP in Los Angeles, to sort it out.