Developer's option agreement (incorporating the Standard Commercial Property Conditions (Third Edition - 2018 Revision)) - Preview

by Practical Law Property

An option agreement for use where a developer intends to apply for planning permission and requires an option to purchase property. This Standard Document outlines the terms under which the Owner grants the Developer an option to buy the property, detailing key provisions such as the Option Period, Purchase Price, and conditions for obtaining Planning Permission. It includes definitions for terms like 'Completion Date,' 'Contract Rate,' and 'Option Notice,' ensuring clarity in the transaction process. The agreement also addresses the Developer's rights to submit applications and appeals, with provisions for extending the Option Period under certain circumstances. The document emphasises the importance of protecting the Developer's interests through a Deed of Covenant and outlines the conditions for sale and purchase following the exercise of the Option. Additionally, it highlights the Owner's obligations during the Option Period, including restrictions on submitting planning applications and encumbering the property. This comprehensive agreement is designed to facilitate the Developer's planning and acquisition process while safeguarding both parties' interests under English and Welsh law.