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

by Practical Law Property

An option agreement for use where a landowner grants a developer the right to purchase land, contingent upon obtaining planning permission for a proposed development. This Standard Document outlines key provisions, including the calculation of the purchase price based on the market value of the property with planning permission. It specifies the option period, the payment of an option sum, and the conditions under which the option can be exercised. The agreement obliges the developer to pursue planning permission diligently and provides for potential extensions to the option period if necessary. It also includes clauses on planning obligations, access rights for inspections, and the responsibilities regarding vacant possession. Designed for transactions involving freehold property in England and Wales, the agreement emphasises the importance of clear definitions and drafting considerations to safeguard the interests of both parties, particularly in greenfield site developments.