D wishes to develop a large tract of land in three phases. D has the financial ability to buy and finance one-third of the property. What can D use to gain control over the other portions of the property until they are needed?

D wishes to develop a large tract of land in three phases. D has the financial ability to buy and finance one-third of the property. What can D use to gain control over the other portions of the property until they are needed?

• A. A Lease
• B. B Option
• C. C Eminent domain
• D. D Escheat

Answer: (B)

The option of using an option is particularly advantageous for D in this scenario because it allows for the flexibility and control over the remaining portions of the property without requiring immediate full financial commitment. An option gives D the right, but not the obligation, to purchase the other portions of the property at a predetermined price within a specified timeframe. This approach is beneficial as it enables D to secure the land necessary for the development project while still being able to finance and manage the initial one-third of the property. By having this control, D can effectively plan and phase the development, ensuring that the resources are allocated properly as each phase progresses. In contrast, a lease would involve D only renting the property, which doesn’t provide ownership rights or the ability to develop. Eminent domain is a government power to take private property for public use, which is not a tool D would use voluntarily for their development. Escheat pertains to property reverting to the state when the owner dies without heirs, which is irrelevant in this context. Therefore, the option allows D to manage and strategize their purchase and development effectively.

The option of using an option is particularly advantageous for D in this scenario because it allows for the flexibility and control over the remaining portions of the property without requiring immediate full financial commitment. An option gives D the right, but not the obligation, to purchase the other portions of the property at a predetermined price within a specified timeframe.

This approach is beneficial as it enables D to secure the land necessary for the development project while still being able to finance and manage the initial one-third of the property. By having this control, D can effectively plan and phase the development, ensuring that the resources are allocated properly as each phase progresses.

In contrast, a lease would involve D only renting the property, which doesn’t provide ownership rights or the ability to develop. Eminent domain is a government power to take private property for public use, which is not a tool D would use voluntarily for their development. Escheat pertains to property reverting to the state when the owner dies without heirs, which is irrelevant in this context. Therefore, the option allows D to manage and strategize their purchase and development effectively.