We have expanded our portfolio of Property documents with the addition of Option Agreement templates.
What is an Option Agreement?
An option agreement is a legally binding contract entered into by a landowner and a potential buyer. Often, but not always, the buyer is intending to redevelop the land.
The buyer is granted an option to purchase the land at some point in the future, during a defined “option period”. Sometimes the buyer must satisfy conditions first, such as making a successful application for planning permission.
Once the conditions, if any, have been satisfied the buyer can require the seller to transfer the land. The price to be paid by the buyer will be set out in the Option Agreement – either a fixed price or a price based on the market value of the land with the benefit of planning permission.
Our first new template is a Simple Option Agreement, with no conditions and a fixed price. We also offer an Option Agreement containing a requirement for the buyer to obtain planning permission, where the price reflects the market value of the land with planning permission. To complement these documents, there is also an Option Notice for the buyer to use when exercising the option.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific