Zoning and Land Use Contingencies

The agreement will typically include zoning-related contingencies to ensure the land is legally permitted for industrial development. These may involve:

• Verification that the land is pre-zoned for industrial use or subject to successful Change of Land Use (CLU) approval
  
• A clause allowing the buyer to exit or renegotiate if zoning is not confirmed or if regulatory restrictions arise
  
• Conditional approval timelines requiring the seller to assist in obtaining layout sanctions or compliance certificates
  
• Requirement that no encumbrances, reservations, or planning overlays conflict with the proposed industrial use
  

These contingencies protect the buyer from investing in non-developable land or incurring unexpected legal delays.

Financing and Transactional Contingencies

To secure financial feasibility, agreements often include financing-related contingencies, such as:

• Buyer’s ability to obtain a loan sanction or internal investment approval within a specified period
  
• Provisions for advance payment, escrow handling, or milestone-based disbursal
  
• Right to cancel or defer the deal if funding is not secured due to title issues, valuation mismatches, or lender objections
  
• Adjustment clauses for stamp duty or registration fee changes impacting total project cost
  

These provisions reduce financial exposure during the closing phase and ensure risk-aligned payments.

Environmental and Site Assessment Contingencies

The agreement typically includes ESA (Environmental Site Assessment) and due diligence contingencies that allow the buyer to:

• Conduct a Phase I ESA or full Environmental Impact Assessment (EIA) before closing
  
• Withdraw or renegotiate if soil, groundwater, or air contamination is discovered
  
• Request the seller to provide all past environmental clearances or compliance history
  
• Include obligations for remediation or indemnity if legacy environmental liabilities are identified
  

These contingencies ensure that the site is suitable, compliant, and free from hidden environmental risks before final acquisition.