Option, Overage & Pre-Emption Agreements & Conditional Contracts
More frequently we are seeing clients exploring opportunities to unlock the potential value of their land through negotiations with developers. Various types of agreements can be established with developers for the acquisition of the land, subject to the procurement of necessary planning permissions. These agreements aim to safeguard your interests and capitalize on the rise in property value.
Our commercial property team are highly experienced in acting for both landowners and developers in drafting, reviewing and negotiating the following agreements:
- Option agreements (in this situation, the purchaser holds an exclusive option to purchase the land within a specified timeframe);
- Overage agreements (in this situation, the seller is entitled to a specific percentage of any future appreciation in the value of the sold land);
- Pre-emption agreements (in this situation, the prospective purchaser is given the right to be 'first in the queue' should the landowner decide to sell the land within the pre-emption period); and
- Conditional contracts (in this situation, the purchaser is obligated to purchase the property once they have obtained the required planning permission).
We understand that no two agreements are the same and we will help you to negotiate an agreement that reflects the true value of the land. It's advisable to involve us as early as possible in the transaction, to benefit from our guidance and expertise in the initial stages. If you would like to speak to a member of our commercial property team in relation to your property agreement, please contact us today.
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