Promotion Agreement Development

However, the main drawback is that the landowner and developer sit on opposite sides of the option table and are thus on the hot seat under many conditions, including the purchase price and the amount of the overrun. This adversarial approach could complicate the conclusion of the agreement and even potentially derail the agreement. The transport contract, in which landowners and developers work in the same way for a common purpose, could therefore be negotiated more easily and therefore concluded. In recent years, we have seen an increase in the use of land-based aid agreements, mainly due to pressure on certain areas to be preferred for future development. After my article was published in the previous newsletter, I received several questions about some of the agreements I mentioned, and in this article I intend to continue the review of land-based aid agreements. In the case of larger development sites, the parties may agree that the proponent will carry out certain infrastructure works to maximize the potential for sale. A “liquid” land aid agreement does NOT lead to a stamp duty (hoorah!). In fact, most transportation agreements are not “cash” agreements, which may be subject to stamp duty depending on the structure of the transaction, particularly when they fall under Section 44A of the Finance Act 2003. In order to ensure that the transport agreement is properly structured to avoid the LTDS legally or if the structure of the contract is unavoidable, these costs will be taken into account in the agreement between the parties. An option agreement is an agreement between two parties, usually a real estate developer and a landowner, with the developer having the opportunity to acquire land from the landowner, usually as soon as certain conditions are met. As part of a possible development, a developer may acquire the land concerned as soon as the land has a building permit at an agreed price. The price may be a fixed amount agreed in advance, or it can be assessed at the time the building permit is issued as market value, sometimes by deducting the developer`s fees when granting the authorization and, as a general rule, a pre-agreed percentage reduction to reflect and reward the developer`s efforts to obtain the authorization. Landowners should be wary of whether the benefits of an aid contract could be lost.

Is there a risk that the organizer will sell immediately and profitably on the site? Landowners, landowners and project developers – the planning assistance contract must work for you. In the event that the landowner needs approval of applications and agreements, will the developer be required to appeal, what other land should be included (can it be part of a larger project)? Strategic Land Team has a wealth of experience in managing options and transport contracts.