Landowners promoting websites ought to guarantee they perceive the distinction between promotion agreements and possibility agreements – to keep away from disputes when promoting.
With a Promotion Settlement, the land promoter seeks to maximise the planning potential of the positioning in an effort to enchantment to the widest vary of builders, because the promoter takes a share of the last word sale worth.
Below an Choice Settlement, the landowner agrees to promote the land, topic to sure standards being glad, however it’s as much as the developer to resolve whether or not to go forward with the acquisition or not.
Alex Khan, senior accomplice of Brindley Twist Tafft & James, a Warwickshire-based regulation agency, mentioned: “Understanding these agreements is essential to unlocking the complete worth in the event you personal land that has improvement potential.”
Khan mentioned the corporate has seen a major surge in enquiries to county landowners from builders and promoters.
He added: “The image has been additional clouded by the federal government’s dedication to look favourably on the improvement of what has been described because the ‘gray belt’ – not brownfield and never closely protected inexperienced belt websites.
“Because of this land that was beforehand thought of unlikely to be thought of for planning permission is now firmly within the body and builders and land promoters have such websites very a lot of their sights.”
