Promotion agreements have been increasingly popular as an approach to developing land, with developers and landowners preferring its benefits not offered by the more traditional option agreement.
Promotion agreements may include similar obligations as an options agreement but it does not give the potential developer the right to purchase the land. Instead, a promotion agreement takes a more collaborative approach between the landowner and developer where the developer will promote the land with the aim of securing planning permission for developing in place of purchasing the land.
Should planning permission be granted, the developer will then market the land to potential buyers on behalf of the landowner. Once the land is sold, the net sale proceeds are shared between developer and landowner.
Promotion agreements can be complex but have great advantages as well, especially for longer term projects. If you’re interested in discussing what the most suitable agreement and course of action is for your project, our team are on hand to assist.