Related Party Transactions |
3 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Related Party Transactions Following the Merger, the Company continues to pay for certain costs on behalf of its former parent and current majority shareholder as the two companies' respective processes are separated. The Company records a due from affiliate balance for all such payments. As of March 31, 2022 and December 31, 2021, the Company had a net receivable due from affiliates balance of $2.7 million and $2.1 million, respectively.
In July 2021, the Company entered into a landbank agreement for a project in its California segment with a related party. The Company will make regular payments to the related party based on an annualized rate of 7% of the undeveloped land costs while the land is developed and will purchase the lots at a predetermined price of $28.9 million at the Company's discretion. The total amount of interest payments made during the three months ended March 31, 2022 is $0.3 million. During the three months ended March 31, 2022 payments of $0.9 million have been made to purchase developed lots from the related party.
The Company sold model homes to a related party for total consideration of $15.2 million in December 2021. The Company recognized lot sales and other revenue of $1.1 million during the three months ended March 31, 2022. Corresponding lot and other cost of sales of $1.1 million were also recognized during the same period. As part of this transaction, the Company leased these models back. The total amount of rent payments made during the three months ended March 31, 2022 is $0.2 million. The right-of-use asset and lease liability balances associated with these leases was $1.8 million and $1.8 million, respectively, as of March 31, 2022 and $2.0 million and $2.0 million, respectively, as of December 31, 2021.
In connection with the Merger in January 2021, we transferred a deferred tax asset ("DTA") to Landsea Holdings, our majority shareholder, of $12.1 million. The DTA represented the deferred tax on interest expensed through Cost of Sales from a related party loan that remained with Landsea Holdings after the Merger.
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