Since land development projects sometimes run behind schedule due to development problems or slow sales of parcels,lenders generally require which of the following in the initial contract?
A)Subcontractor holdbacks
B)Title extension
C)Extension agreement
D)Release from liability

Question

Quizplus · Accepted Answer

Lenders generally require an extension agreement in the initial contract to account for the possibility of land development projects running behind schedule. This agreement allows for additional time to complete the project without defaulting on the loan. The other options, such as subcontractor holdbacks and release from liability, may also be included in the contract but do not directly address the issue of project delays. Title extension may be required if there are issues with the chain of title, but it is not directly related to project delays.

Since Land Development Projects Sometimes Run Behind Schedule Due to Development