Common use of Initial Sale Price Clause in Contracts

Initial Sale Price. 1. Upon completion of the Affordable Unit, the Developer shall not sell the Affordable Unit for a price greater than the Initial Sale Price as shown on Exhibit B. Developer may not increase the Initial Sale Price for an Affordable Unit without the prior written approval of the Declarant and Declarant may withhold or condition its written approval, if any, in its sole and absolute discretion. 2. If Declarant approves in writing an increase to the Initial Sale Price for an Affordable Unit and that increase amounts to a Sales Price, as defined below, that is at least five percent (5%) or more above the Initial Sale Price (such excess, the "Excess Sales Price"), then fifty percent (50%) of the amount of the Excess Sales Price shall be recaptured by and distributed to the Declarant from the Developer. For purposes of this Covenant, the term “Sales Price” shall mean the sales price identified in the contract for sale or agreed upon between the Developer, as seller, and an Eligible Purchaser, as buyer, for the Affordable Unit, but shall exclude any amounts approved by PADD to be used to assist an Eligible Purchaser with closing costs, down payment assistance, or other costs in connection with purchasing the Affordable Unit. Declarant reserves the right to approve or disapprove for any reason any Sales Price above the Initial Sale Price proposed by Developer.