What is this and why might you be interested? Having trouble selling your house? Want to achieve a top price for your property? Want to sell, but not in a hurry? Got a large back garden which could be developed – on its own or in conjunction with the neighbour’s gardens? An option agreement with developers may be the right deal for you.
Developers very often enter into a legally binding contract with house or land owners for the developer to purchase their property or land, provided that planning permission is granted for its development or as part of a much larger development. Most contracts allow the developer to choose whether to go ahead once the planning permission has been granted, but tie the owner down to selling at the developer’s option for a certain period of time.
Such agreements are a minefield for the uninitiated and can lead to the owner tying their properties for up to 3 years with no comeback, if the developer decides not to proceed. Make sure you have the benefit of our seasoned advice before you negotiate with the developer’s agents. We are in a much better position to negotiate the terms and conditions and to make sure you get an option fee on exchange of contracts which is yours to keep, even if the developer does not proceed.
For expert advice, call us freephone on 0800 011 6666.