Call option agreement (shorter form, without planning obligations) (incorporating the Standard Commercial Property Conditions (Third Edition - 2018 Revision)) - Preview

by Practical Law Property

An option agreement for use where a landowner grants a third party the right to purchase a freehold commercial property within a specified period. This Standard Document outlines the terms under which the option can be exercised, including the payment of an Option Sum and the determination of the Purchase Price, which can be a fixed sum or calculated based on market value. The agreement emphasises the personal nature of the option, prohibiting assignment or transfer by the Grantee. Upon exercising the option, the Grantee must pay a Deposit, and the sale incorporates Part 1 Conditions of the Standard Commercial Property Conditions (Third Edition - 2018 Revision), with specific amendments. The document addresses risk and insurance, stating that the property is at the Grantee's risk from the Exercise Date. It also covers deducing title, vacant possession, and title guarantee. The agreement is governed by the law of England and Wales, with jurisdiction granted to its courts for resolving disputes.