Option to buy land – additional price, assignable

About this document
This is an option agreement to buy land, that is, real property.  It includes paragraphs for assignment.

This is a version most suitable in circumstances. It has a build in provisions for increasing the exercise price in proportion to the increased value of the land, thus returning a “fair” proportion of the increase to the seller, regardless of the level of success of any scheme.  It is suitable for any type of land - field, farm, shop, garage, house, derelict site and so on.

Application and features

• Sets out a clear and logical pathway for exercise of the option;
• All variables are clear and in one place;
• Suitable for a variety of land types and situations;
• Written in plain English;
• Includes explanatory notes.

Contents

• Property and option details;
• The essence of the agreement;
• Calculation of price or additional price or extended option;
• Registering the option and HM Land Registry;
• Provision for buyer to nominate the purchase to someone else;
• Buyers warranties;
• Sellers warranties as to the current planning status of the land;
• Confidentiality;
• Indemnities;
• Assignment;
• A director’s guarantee, in case the seller is a company;
• Inclusion of any unregistered rights over adjacent land;
• Separate notice letter to exercise the option.