What Is An Option Agreement Land

Whether or not this is an option for registered land, the buyer should report it to the land registry. He or she needs a lawyer to do so, but he or she will need a plan unless the area covered by the option is the same as the seller`s registered title. In this way, no other person can declare an interest in priority over the buyer`s interest. The public sector often refers to the “recovery” overload in which, if they sell land at a discount, this discount can be “applauded” when certain “trigger” events occur later. Unlike pre-purchase agreements that give the potential buyer only the right of pre-emption when the seller chooses to sell it, an option contract is a legally binding contract. So don`t be surprised that you (or the buyer, if you are the seller) are able to successfully conclude the event on which the option depends, you will actually have to buy or sell the property, even if other circumstances have changed. The key to avoid “Oh no, what I did!” It is important to ensure that the development of the option agreement is as watertight as a submarine. The duration of the option – The amount of the option – The condition or conditions that must be met for the right of option to be met – Amount of down payment and payment terms – Extension of the term of the option, if applicable – The final purchase price of the property, if any – A dispute resolution procedure – Details on the end of the deadline for each part of the agreement under certain conditions , you should ensure that your property purchase agreement is amended to clearly reflect the agreed terms and, of course, to obtain more detailed advice. This answer should not be invoked without a lawyer dealing with the full circumstances. An option contract benefits both landowners and developers: a landowner has the comfort of a developer who advertises his website; and the developer has some security regarding the future pipeline for delivery, usually at a reduced purchase price to reflect planning risks.