What is an anti-speculation clause?

An anti-speculation clause is a stipulation in a purchase agreement that prevents a buyer of real estate from quickly reselling the property for profit. The clause obliges the buyer to occupy or use the property themselves for a specific period. Sometimes it requires prior permission for sale or stipulates that a portion of the profit must be ceded to the previous owner. This clause is often applied by municipalities to prevent price inflation and speculative trade. Violation can lead to substantial fines, and the clause is often included as a chain clause, meaning that every new owner must pass on this obligation.