This is the ability to have a right to purchase or sell a piece of land and is often used with development opportunities. The firm will act for either a seller who grants the option or the party who receives the benefit.
If within a certain period of time parties donít complete the deal, the agreement may no longer be viable; the price of land or property can go up or down and the developer could have got planning for a greater number of plot sales. Through the correct Overage Clauses, the firm can ensure that all partiesí interests are protected if the time does elapse.
In advising on an Option Agreement, the solicitor will inform the landowner of potential overage opportunities or conversely, and advise a developer on their obligations and responsibilities to pay overage. In some cases Conditional Contracts can be drafted up where by if certain actions are carried out, or planning is obtained, the landowner agrees to sell and the developer agrees to buy.