Custom Residential Architects Network

I have designed a ±2500 sq. ft. custom home for a client on a 2-acre lot in California. We completed the design and cleared the HOA design review with the DD phase architectural package. A structural engineer consultant had just completed structural engineering documents and calculations; we also have energy design complete. Documents have not been submitted to AHJ for permit as I was just finishing the final coordination and just beginning the final architectural detailing. Following this, my clients requested to pause my efforts and have decided to purchase a 4-acre lot in the same neighborhood and would like to site the designed home on this new lot. They plan to sell the 2-acre lot and have requested to list the plans designed for that 2 acre property as part of the sale. We are amending the contract to re-site the home as designed for the new 4 acre lot along with whatever re-engineering needs to be for the new site and location.

Our contract includes the typical AIA B-series language about ownership of the documents, stating that the architect grants a license to use the drawings to build one time on the property it was designed for.

I will consult a lawyer to address any liability issues. My client and I do not have concerns about a duplicate home being built if the buyer decides to use the plans. The buyer will still require a licensed architect to complete the construction documents for permit submission if they choose to build that design.

I am reaching out to see if anyone has had experience with this sort of situation?

All the best,

Josh

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Joshua Koelewyn AIA
Idle Dot
Altadena CA
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Hi Josh,

I wrote an answer, and when I clicked post, I got the blue circle of death and my response disappeared, so I am rewriting my answer. I say that just in case my previous response suddenly appears out of the ether. 

While I have not faced this exact situation, I had a remodeling client ask if I would consider amending my terms and conditions to allow them to provide copies of my drawings to a hypothetical future buyer. I consulted my attorney, and he said he thought that type of use was already in the scope of the license. To satisfy the client, he suggested amending the intellectual property section of my terms and conditions to include this language: 

Expressly conditional on payment of all fees and other charges owed under this Contract, Studio Z grants to the Owner a perpetual, non-exclusive license to reproduce drawings and specifications as may be needed for purposes of maintenance and other ownership requirements for the completed project. In addition, that license shall permit the Owner to provide copies of Studio Z intellectual property to potential buyers of the property where the project is contemplated provided that any such copies are unaltered and include the full Studio Z title blocks, identifying and contact information, and copyright insignia as appear on the original versions.

I would not allow a client to "sell" my drawings, as they don't own them. However, allowing them to give copies of your drawings, including your contact information and copyright insignia, would be a nice gesture, and might even earn you another client. 

Definitely consult an attorney. 

Good luck!

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Dawn Zuber, FAIA
Studio Z Architecture
Plymouth, MI
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HI Josh,

I had a similar circumstance here in CA, where a client decided they did not want to continue with a project, and wanted to sell the lot with plans.  We agreed they could advertise that plans had been created for the property, and allowed them to show potential clients our design in PDF form.  But neither me, nor any buyer, would be obligated to continue a project.  it would be an interview, like a new project. It would be up to me to negotiate the new fee and scope with a new client. The original owner can try to get additional value for their lot because 'plans have been created' - and a seller may/may not agree - but they can't actually attach real value to it, because they don't own the plans - you do.  A new client can't use the plans without your approval, so I'm not sure there should be any liability there. I would not issue any plans beyond 'presentation' plans /elevations for general marketing.  The full sets should be only available for real buyers to review, so you can document who sees them, and there is not a question of them taking your plans to another architect.

For us - Eventually the new purchaser of the lot signed us up to revive/restart the project, so being flexible with the seller paid off, and gained us a new client. That client did see a savings by restarting the project, and the seller had gotten a bit more for the lot because of the work that they'd funded.  

Good Luck,

Casey Hughes

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Casey Hughes AIA
Napa CA
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