An ‘Option’ to buy land is a frequently used legal document in commercial property. As the name suggests, it gives a potential buyer the option of purchasing a particular plot of land, for a particular period of time. The potential seller is usually paid a sum of money for agreeing to the Option. If the buyer exercises the Option within the time limit, the owner of land is legally obliged to sell on the terms agreed in the Option.
Options are frequently used by property developers, who require certainty that they can buy all the land they need before they begin the expensive and lengthy process of gaining planning permission on the land. However, this is not the only situation where an Option is useful. For example, a Company negotiating a big contract might need to expand premises if they win the contract. An Option can be agreed over neighbouring land, giving the company certainty that, if the contract is won, the Option can be exercised and the land purchased.
With millions of pounds often at stake, it is extremely important that Options are meticulously drafted. An Option which is vague, uncertain or badly written can be very detrimental to one party, or at the worst, unenforceable. The Commercial Property team at Abacus has experience in drafting and negotiating Options to Buy for all types of land, giving you peace of mind that, whether you are a potential buyer or seller of land, the Option will work for you.
Get advice on Options from our Commercial Property team on 0161 833 0044 or email firstname.lastname@example.org.