We can’t have a lawyer draw up an official contract until we know the location of the property, but I have a contract lawyer ready to go when the time comes. Note, just this contract alone will cost close to $5,000 to have drawn up, so we really really can’t do it until we have the support we need.
That being said, here are the terms and conditions to protect both you and us in this crazy idea. Please note: THESE ARE NOT LEGALLY BINDING AT THIS TIME.
Terms & Definitions:
Owners – IOUtopia LLC (me and Hudson)
Investors – any persons who contribute a minimum of $3,380 with the intention of utilizing the land after the Opening Date
The Property – the piece of land we are planning on buying
The Funds – the total amount of money raised from Investors (excluding any additional donations made from non-Investors)
Purchase Date – the date IOUtopia LLC assumes ownership of the Property
Opening Date – the date the Property is officially open for Investors to utilize the Property
Investment Date – the date the project is fully funded
– The Owners are obligated to use the Funds to purchase a property with a minimum size totaling one acre per Investor.
– Any remaining funds beyond the purchase price and any fees related to the purchase of the Property must be used for maintaining, upgrading, improving, or conserving the Property.
– If the Owners fail to purchase the Property within two years, all Investors will be refunded their initial investment minus the 3% processing fee from the original funding.
– Each investor must commit to a minimum four-year investment horizon from the Investment Date.
– In years 5-30, any Investor may request a Buyout. However, these will be limited to 4 per calendar year (totaling $13,520 in principal), starting in year 5, going through year 30 (so 100 in total). These will be offered first-come first-served each year, and if you miss this year’s buyouts, you must wait until the next year to request your slot (this is to keep it so that all 25 years don’t immediately get filled).
– Any buyouts beyond the aforementioned 100 will be considered on a case-by-case basis.
– The buyouts will be structured at 2% interest accruing annually.
– The Owners reserve the right to buy anyone out at any time at an annual interest rate of 2%.
– This investment does not grant the Investor any explicit or implied rights, privileges, or ownership of the Property whatsoever.
– Once the Property is purchased, all Investors will receive a detailed prospectus outlining characteristics of the Property including but not limited to: acreage, water access, water rights, soil quality, land use, zoning, and solar- and hydro-power potential.
– If any Investor physically visits the Property at any time after the Purchase Date, said Investor is permanently waiving their right to request a buyout.
– Each investment of $3,380 is valid for one human being to utilize the Property after the Opening Date.
– This contract does not guarantee any terms regarding said “utilization” and a new contract will be drawn up within one year of the Opening Date of the Property.
– The Owners reserve the right to change, update, upgrade, or alter the Property in any way they see fit, in perpetuity.
– The Owners reserve the right to sell the Property at any time.
– If and when the Property is sold, all Investors will be refunded their original investment plus interest at an annual interest rate of 2%.
– Waiver of Right to Sue. All Investors release IOUtopia LLC, its Affiliates and their respective officers, directors, employees and agents, from all claims, demands, and damages (actual and consequential) of every kind and nature, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way connected with IOUtopia LLC.
– All Investors agree to release, waive, discharge, hold harmless, defend, and indemnify IOUtopia LLC and its staff from any and all claims, actions, or losses for bodily injury, property damage, wrongful death, loss of services or otherwise” arising out of the Investor’s use of the Property.