Even the most conservation-minded and generous landowner may need to sell his or her land to achieve an economic goal. Your personal or family financial situation may require you to receive the maximum financial return from you land. However, this does not necessarily mean that your conservation goals must be set aside. When John Kennel sold his land to Natural Lands Trust, he helped to preserve an important part of our Sadsbury Woods Preserve, protect a piece of his own heritage, and achieve an important financial goal.
Fair Market Value Sale
A purchase at fair market value (FMV) is the “normal” real estate transaction in which the buyer and seller agree upon a price that is thought to reflect the full value of the land in a competitive marketplace.
Bargain Sale
Perhaps you cannot afford to donate your land, but could sell it to a conservation group for less than fair market value. This is called a “bargain sale.” Upon sale of the property, the landowner receives payment for the property and a charitable deduction for federal income tax purposes equal to the difference between the fair market value and the sale price.
Right of First Refusal
If you are not yet ready to sell your land but want a conservation group to have the opportunity to buy it when the time comes, a right of first refusal is a useful tool. Such a right can be contributed or sold. It gives the holder the opportunity to match any purchase offer the owner receives from other interested parties within a specified time frame.
