Option Agreements and Conditional Contracts
Have you been approached by a developer about purchasing some land that you own? Are you a developer wishing to develop land, but you want to be sure you will get planning permission before you do?
Option Agreements are contracts which, when granted, give a person the right to purchase property at some point in the future if they choose to. This could, for example, give a company time to obtain the funds it needs to build its new head office on the perfect spot of land. This benefits the landowner as they receive an income for unused land, and the company as they have the freedom to either purchase the land or to choose not to proceed if their plans change.
Conditional Contracts can also allow parties to tailor a transaction to their needs. A Conditional Contract would bind the purchaser to complete on their purchase, but only if a specific condition has been met, for example approval of planning permission within 12 months of contract.
You might consider seeking legal advice on your options before you negotiate heads of terms with another party. Our property lawyers can give you comprehensive advice so you can decide on your preferred transaction structure.
For more information or advice about Option Agreements and Conditional Contracts, please contact us today.
