Development and Option Agreements

Ensuring clarity and security
in property development deals

There may come a time when you wish to engage a developer to develop part of your land, or a developer approaches you with interest in purchasing all or part of your land for future development. Development agreements and option agreements are legally complex documents, and any mistakes in their drafting can lead to delays, financial loss, or unintended liabilities.

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Specialist Legal Advice for Development and Option Agreements

We can assist you with the negotiation and drafting of these agreements and ensure that your interests, whether as a landowner or a developer, are fully protected.

What is a Development Agreement?

A development agreement is used when a landowner wishes to engage a developer to carry out works on land they already own. As this agreement governs the entire relationship between the landowner and developer, it is critical that it addresses key legal and commercial issues, including:

Warranties and indemnities
Insurance obligations and liabilities
Planning permission conditions and timelines
Project milestones and completion dates
Compensation terms for delays or extensions
Access rights and licences
Allocation of development costs
A clear dispute resolution process

What is an Option Agreement?

An option agreement is an agreement between a landowner and a prospective purchaser (often a developer). In exchange for a non-refundable option fee, the purchaser is granted the exclusive right to buy the property within a defined time frame, usually triggered by an event such as the granting of planning permission.

Well-drafted option agreements clearly outline:

The length of the option period
Triggers for the right to purchase
Purchase price or method of valuation
Responsibilities for planning and development costs
Conditions for exercising the option

Do You Need Legal Advice on a Development or Option Agreement?

Our experienced agricultural and property solicitors have extensive experience in advising on both sides of development and option agreements. We work with landowners, farmers, and developers across Sussex and the South East to ensure agreements are clear, enforceable, and tailored to your goals.

We understand that every agreement is unique and requires close attention to detail. Our proactive approach means we will guide you through the drafting process, highlighting risks, securing your interests, and ensuring you’re protected at every stage.

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Looking for legal support? Get in touch with our solicitors, and we’ll connect you with the right expertise to meet your specific needs through our trusted legal team and professional partners.

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FAQ Topics

What is the difference between a development agreement and an option agreement?

A development agreement involves a landowner engaging a developer to carry out construction or improvement works on land they already own. An option agreement, on the other hand, gives a prospective buyer (usually a developer) the exclusive right to purchase land at a later date, often triggered by planning permission being granted.

Do I need a solicitor for an option or development agreement?

Yes, these agreements are legally complex and can carry significant financial and legal consequences. A solicitor will ensure your rights are protected, help negotiate favourable terms, and identify any hidden risks in the contract.

What happens if planning permission isn’t granted during an option agreement?

Most option agreements will include provisions for what happens if planning permission is refused. Typically, the purchaser will not be obligated to buy the land, but the landowner retains the option fee paid. It’s crucial that these terms are clearly set out in the agreement.

Can I negotiate the terms of a development or option agreement?

Both landowners and developers can (and should) negotiate the terms of the agreement to reflect their interests and expectations. We can support you throughout this process to ensure a fair, balanced, and legally sound contract.