Housing is expected to be one of the priorities of the Chancellor`s budget on Wednesday. Philip Hammond will announce plans to build 300,000 homes a year and do everything to build owners on construction sites. In this context, strategic rural assistance will likely be maintained and landowners on the outskirts of towns, towns or villages in the south-west may be approached by developers or developers. Developers will ask a landowner to enter into an option agreement or advertising agreement. 6. During the term of your mandate phase, agree on an appropriate contribution to your attorney`s and agent`s fees. Negotiating an option or contract of carriage may take a few months. This is a long and complex document and will last for many years, which may take some time to formalize the document. The promoter will also carry out extensive due diligence to the campaign. Under an option agreement, a developer obtains the building permit for the development of the land from the landowner and then has the exclusive right to acquire the land at a price below its market value. In any case, the landowner does not reimburse the developer or developer for the cost of applying for a building permit in the absence of a building permit. The main advantage for the landowner is that he/she does not have to incur significant advance charges to obtain the building permit, especially since the time to obtain it can be long.
If no planning is requested, there is usually no charge. This benefit is offset by the fees to be paid to promotion agents for its services. It is only to make the conclusion even more difficult that there are hybrid agreements; an option agreement allowing the developer to sell the land to third parties (i.e. B to transform it into a promotion agreement) or a promotion agreement allowing the developer (or a related company) to purchase the market land. The advantages of this agreement for the landowner are those of transport agreements, but can also give some guarantee as to the sale price if permission is obtained. However, this price is usually set in advance and may not necessarily reflect the market value at the time of planning, especially in the event of a change in density or significant delay. Promotional agreements are attractive to developers, as they do not need financing and have to buy the property themselves or actually have associated SDLT costs. 1. Perform your due diligence for the organizer. Make sure you`re happy with who you`ll be taking out a contract with – this is a long-term relationship: the initial option or transport times of 5 or 10 years (or even longer) are common….