holdout

(redirected from Holdout device)
Also found in: Dictionary, Thesaurus, Wikipedia.

Holdout

A homeowner (often the only one) who refuses to sell to make way for a new development. For example, if a company attempts to buy all the houses in a neighborhood to make way for a shopping center, a holdout is the one who does not sell. Holdouts can force the buyer to abandon or redesign the project.

holdout

A property owner who refuses to sell to a developer who is purchasing a number of separate parcels in order to put them together—an assemblage—for development. Sometimes the practice results in an offer vastly in excess of market price,because the holdout controls the success of the entire project.Other times, developers go back to the drawing board and redesign the project, leaving the holdout with no offer at all and what could turn into very unpleasant living conditions due to being surrounded by parking lots and 24-hour high-intensity lighting.Developers often avoid the problem by purchasing options rather than properties,so that if a critical property owner refuses to sell,the developer can abandon the entire project with a minimal expenditure.