The agreement requires an explicit termination clause if the promoter does not comply with the rules and there is no real prospect of success. A third-party guarantee may be provided by the landowner as a guarantee of payment from the developer. If the landowner does not meet his contractual obligation to pay the developer to the developer, the developer can call on the guarantor. However, as noted above, a guarantee depends on the financial capacity and sustainability of the bond. This may not provide sufficient security for the project proponent. In addition, it is not always easy for a landowner to find a guarantor and parent companies are often unwilling to provide such a guarantee. A loan from a bank or financial institution could be provided by the landowner, but the bonds are expensive to obtain. Borrowings and guarantees are not appropriate if the amount of the potential payment to the developer and the period during which the loan is required are unknown. It is rare that you find such an institution ready to guarantee such a permanent commitment. A transportation contract is most used when there is medium to long-term planning potential for the country.
The organizer (usually a developer, but anyone can act in this way) will agree to promote the country at their own expense and apply for a building permit. This is the usual way of guaranteeing payment under a country promotion contract. The agreement contains only a contractual obligation of the landowner to pay the developer`s share to the project proponent when a satisfactory building permit is issued and the property is sold with permission. However such a confederation does not usually work with the Land and binds rights holders in the title and is therefore generally insufficient for the parties. The contractual obligation depends on the financial capacity and sustainability of the landowner and does not provide a guarantee of payment to the developer. However, if the landowner is an essential organization and his or her assets have been fully investigated, a developer may be satisfied that the landowner will likely remain financially strong for the duration of the eligibility period.