One of the most common agreements involving disposal and acquisitions of land for development is for both parties to enter into an option agreement.
An option agreement is a legally binding contract entered into by the seller and potential developer which states that the developer will have guaranteed right of purchase for a predetermined amount within an agreed time frame. This is usually entered into through the developer giving notice to the landowner during an agreed period and paying a sum of money.
Option agreements can be useful for several reasons. For example, it allows developers to explore the planning potential of a site without being obligated to complete the purchase should they not be able get the permission they need. They are also useful if the developer needs time to raise the finance.
We assist with all the legalities of an option agreement and ensure everything is documented correctly. If you would to discuss your needs with a legal expert, contact our commercial property team.