Price escalation clause samples

XML 27 R16.htm IDEA: XBRL DOCUMENT /* Do Not Remove This Comment */ function toggleNextSibling (e) { if (e.nextSibling.style.display=='none') { e.nextSibling.style.display='block'; } else { e.nextSibling.style.display='none'; } } v3.5.0.2 Related Party Transactions 6 Months Ended Jun. 30, 2016 Related Party Transactions [Abstract] Related Party Transactions Disclosures RELATED PARTY TRANSACTIONSMagnolia ReserveWe have an option contract to purchase 106 finished lots in Montgomery County, Texas, from an affiliate of a family member of our chief executive officer for a total base purchase price of approximately $8.0 million. The lots will be purchased in takedowns of at least 21 lots during each 6 month period, subject to 5% annual price escalation and certain price protection terms. The first closing of 21 lots occurred during the second quarter of 2016 for $1.6 million and was not subject to the 5% annual price escalation. As of June30, 2016, we have 85 finished lots remaining under the option contract to be purchased in takedowns for a total base purchase price of approximately $6.4 million. We have a $100,000 non-refundable deposit at June30, 2016 related to this option contract. Consulting FeesWe had a three year consulting agreement with a family member of our chief executive officer for $100,000 per year payable on a monthly basis, which was set to expire in November 2016. The agreement was terminated in June 2016 by mutual agreement of the parties. Consulting fees were $58,333 and $25,000 for the three months ended June30, 2016 and 2015, respectively and $83,333 and $50,000 for the six month periods ended June30, 2016 and 2015, respectively. X - ReferencesNo definition available.