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Tue 21 June 2022
For those with land in strategic locations with residential development potential, such as adjoining a village, town or city, entering into an agreement with a promoter or developer is a common way to manage and further your lands development potential, while avoiding the cost and hassle of negotiating the planning system yourself.
You may have heard the terms ‘promotion agreement’ or ‘option agreement’. But what do these mean and which is right for you?
With an option agreement, the developer has the option within an agreed timeframe (often 5-10 years) to purchase the land, subject to them obtaining planning permission. The price paid by the developer is either negotiated once planning permission is obtained or previously agreed up-front.
Alternatively, a promotion agreement is where a promoter agrees to progress the site through planning to obtain either an allocation or planning permission. If successful, the landowner is then bound to sell the land, paying the promoter a fee.
Stags Professional Services department has significant experience in dealing with both types of agreement on our client’s behalf and is happy to advise on which approach is right for you. Our range of services includes everything from a fixed fee scoping report to determine the potential of your land, to advising over and tendering opportunities to ensure you enter into the most suitable arrangement and managing and implementing agreements once in place. For further information please contact Miles Webber on 01803 862002 or Stephen Boundy on 01392 439046.