Anatomy of a Land Deal: Getting from Start to Finish

D&R Greenway Land Trust's professional staff works directly with landowners to develop customized solutions for preservation that meet each individual's personal and financial goals. We purchase land

The Rawlyk Farm in Kingwood Township was preserved in 2006.

and conservation easements from landowners, creating nature preserves, protected farms and public parks. We bring together partners to leverage open space dollars and employ conservation tax benefits to show landowners that land preservation is a viable financial choice. We also advise municipalities and grassroots open space groups on ways to achieve their preservation goals. Our leadership and professional expertise enables us to facilitate transactions for our public and private partners.

Anatomy of a Land Deal Printable Copy -Updated June 25, 2007

The Process from Start to Finish
It seems like magic. You open your latest D&R Greenway Land Trust newsletter to find that you've helped us protect even more land in your community. But if you've ever bought a house, you know that real estate purchases require many steps from start to finish. Add fundraising, meeting the technical requirements for state and county funding, and defining all future uses and needs for the conservation property to the list, and you've got a picture of the effort it takes to preserve every acre protected by D&R Greenway Land Trust. It's a complicated process, but one that we manage for you from start to finish.

It usually starts with a phone call - one of hundreds that will take place before we get to closing. It might be from a landowner who has heard about D&R Greenway Land Trust and wants to learn about options for preserving his or her land or perhaps a municipal open space committee who is asking us to work with a landowner to preserve land in their community. But no matter how they come to D&R Greenway Land Trust, we start with the first essential step. We Listen!

Working hand-in-hand with the landowner to define the path to preservation
Through a series of meetings, phone conversations, and visits to the property, we are able to work hand-in-hand with the property owner to define the path to preservation. The landowner may choose a conservation easement that restricts future development while keeping the land in private ownership. Or D&R Greenway Land Trust may agree to purchase the property outright. While walking the property, we identify the birds and plants, and the waterways and habitats that must be carefully managed into the future to ensure good conservation. Our staff creates maps that overlay boundary lines on top of aerial photographs, and that identify all potential future uses of the property that are consistent with conservation.

Defining the Costs
An important element is defining the costs involved with the preservation of the land. This means obtaining a qualified appraisal that looks at comparable sales in the area. With this information in hand, D&R Greenway Land Trust begins to explore funding sources, starting with State, county and township open space funding. At this stage, advisors might be brought in to present information to the landowner on how to maximize their benefit through a conservation sale. Our staff uses its experience to illustrate how the combination of tax benefits and a conservation sale can compete with a potential development offer.

When an agreement on a purchase price for the land or conservation easement is reached and funding sources are clearly defined, D&R Greenway Land Trust's legal counsel prepares and drafts contracts for review by the landowner's advisors. Consideration is also given to the stewardship of the land once it is protected. A landowner is encouraged to consider an endowment fund for ongoing stewardship activities. See Stewardship for more information.

Ensuring Compliance with State Requirements
All legal contracts must be consistent with State requirements. Even for donated land or conservation easements, the same process is followed since the State will recognize donations to D&R Greenway Land Trust that meet their requirements by providing future funding opportunities.

Signing the Agreement
Once the agreement has been signed with the landowner, the detail work begins. D&R Greenway Land Trust must obtain a current survey and legal description of the property set to State Plan coordinates. We order a title search to ensure that we can obtain clear, enforceable title to the property. If the property has a mortgage, we work through the landowner's attorneys and mortgage holder to obtain a subordination, release or discharge of any mortgage to the conservation easement. A Phase I environmental assessment is ordered to ensure that the property is not contaminated.

D&R Greenway Land Trust Staff Orchestrates the Entire Process
Our staff manages the surveyors and other professionals to ensure that all documents meet the State's requirements. During this time, we resolve any issues that come up. Fortunately, D&R Greenway Land Trust's professionals are expert problem solvers, having experienced many of the pitfalls that can plague preservation.

Fundraising
While completing the technical details, we are often raising funds to meet the purchase price, and we must ensure that we can meet all the closing costs and set aside funds for future stewardship. To secure public funds from the NJDEP Green Acres Program, the county or the township, we must submit all of the completed technical reports for approval and then fill out the necessary payment vouchers in time for closing.

Closing the Deal
Finally, we come to the closing table to complete the property's preservation. Last-minute reviews of settlement sheets, deeds and affidavits, title insurance and other closing documents are handled by D&R Greenway Land Trust's staff and legal advisors. When the ink is finally dry and the property is preserved, we enjoy the most rewarding part of the process - celebrating and thanking the landowner for creating a legacy of preservation. Each area preserved is a great achievement for the future.

Since every transaction is unique, it is never a simple step-by-step process. In the end, it takes many meetings, phone calls, and visits to protect a property. It takes several lawyers, one or more financial advisors, often three or more funding sources, and half a dozen D&R Greenway Land Trust staff members. Every deal requires a vote of D&R Greenway Land Trust's Board to approve the transaction.

Most importantly, preservation calls for a landowner who is committed to protecting the land. D&R Greenway Land Trust has worked with hundreds of dedicated citizens who want to see that New Jersey continues to maintain the beautiful natural places that provide not only scenic vistas and places for recreation, but also fresh, clean water, habitat for wildlife, and produce for our consumption. It's a challenge, but with your help, we have been successful in accomplishing our goals.

Information updated June 28, 2007