Option & Promotion Agreements
Planning applications can be costly to run and there is always a risk that planning permission is not granted. As a landowner, this is a risk that needs to be considered. Even a well prepared and detailed planning application, which is recommended for approval by the Local Planning Authority can be refused, at great cost to a landowner.
An alternative is to enter into an Option or Promotion Agreement, an area Andrew Granger & Co. has extensive experience in when acting for landowners.
Under an Option Agreement, a landowner will give the developer a right to buy the land and the developer will take on the various obligations and costs involved in securing a planning consent.
A Promotion Agreement will contain similar obligations to the Option Agreement (pursue planning consent), however it does not give a right for the promoter to purchase the site. Rather, the promoter is entitled to an agreed percentage of the sale proceeds when the land is sold.
This is a very simple overview of what can be a tricky process to negotiate, if you would like to discuss these options in more detail, please feel free to contact the Planning & Development Team.