What is an Option?
An Option is a form of contract between a Developer and a Land Owner. It is an option because the Developer has a choice as to whether or not to exercise the option and buy the land.
In general the Developer will:
- Pay the Land Owner a small premium to secure an Option for a fixed period of time
- Register the option at the Land Registry against the Land Owner’s title
- Make investigations as to viability of the acquisition (giving consideration to factors such as Planning Permission, Title and funding)
- The Developer must decide before the end of the fixed period whether or not to exercise the Option
The Land Owner is obliged to sell the Property to the Developer if the Option is exercised during the fixed period of time.
Whether you are a Land Owner or a Developer our Commercial Property department will work with you to ensure the Option represents exactly what you require.
For further information and advice speak with our experts.