Land promotion agreement

by Practical Law Property

A standard document setting out a land promotion agreement between a landowner and a promoter for a property in England or Wales. This standard document provides a detailed framework where the promoter agrees to fund and pursue a planning application for a specified development on the landowner's property. If a Satisfactory Planning Permission is achieved, the land is then marketed for sale on the open market. Upon a successful sale, the promoter's costs are reimbursed from the gross proceeds and the remaining net sale receipts are shared between the parties. This standard document addresses the entire lifecycle of the promotion, from defining the planning and disposal objectives to managing the sale process. It includes provisions for appointing a professional team, handling statutory agreements under the Town and Country Planning Act 1990, and navigating potential third-party challenges. Key considerations, such as Biodiversity Net Gain (BNG) and the Construction (Design and Management) Regulations 2015 (CDM Regulations), are also integrated. This standard document secures the promoter's position through a positive covenant and a restriction on the title to the landowner's property.