This is the ability to have a right to purchase
or sell a piece of land and is often used with development
opportunities. The firm will act for either a seller who grants the
option or the party who receives the benefit.
If within a certain period of time parties don’t complete the deal,
the agreement may no longer be viable; the price of land or property can
go up or down and the developer could have got planning for a greater
number of plot sales. Through the correct Overage Clauses, the firm can
ensure that all parties’ interests are protected if the time does
In advising on an Option Agreement, the solicitor will inform the
landowner of potential overage opportunities or conversely, and advise a
developer on their obligations and responsibilities to pay overage. In
some cases Conditional Contracts can be drafted up where by if certain
actions are carried out, or planning is obtained, the landowner agrees
to sell and the developer agrees to buy.