The other option I would like to consider at the moment is some sort of buying a property for a lower amount, say 260K (figures to be agreed) now and pay the rest 40K if/if the lease is renewed. But not sure how we could structure it in such a way that the seller has a guarantee/assurance of this payment. We don`t know each other personally. Simply put, an option agreement, when used for development, is a way for landowners to achieve an increase in land value without bearing the considerable costs of obtaining building permit. This risk is taken by a developer who, if successful, allows both parties to obtain an increased percentage of the market value. The percentage that everyone receives is a trading point at the beginning. I am in the process of buying a piece of land next to my house. The seller wants in the clause that if I decide to sell, he gets an option to buy it back first (I think, at a price for which I buy it). In this case, how can I best protect myself? Thank you, in addition to the examples in the introductory paragraph, other situations that may lead to an option agreement are as follows: For any other questions regarding overtaking and option agreements, contact our lawyers for commercial real estate.
As a landowner, you can use the skills, knowledge and means of an experienced developer. Since most options are « take » options, unless there is a sharp slowdown in the market or the conditions imposed by planners on a successful deal are too onerous for the developer to continue, you can be sure of an interested buyer at some point in the future. Impact on uninsased land: Sometimes a developer wants to buy the country in several stages (phased development). You must therefore ensure that the option agreement gives you the right to use the country as freely as possible during the submission and recovery of the planning. Buying a slice can make a big difference as to when the proceeds of the sale were received, which must be clearly stated in the contract. Option agreements are often sought after by developers on land and can go hand in hand with leases. For example, if the landlord agrees, tenants can rent commercial premises with the option to buy the owner`s interests if they wish. In both scenarios, the property is sterilized for other interested parties and options should not be given lightly. We can help you negotiate an overtaking agreement that is fair to both parties and reflects the true value of the country. In many cases, the real estate agent leaves these questions to your lawyer to check if an agreement is possible.
Notoriously complex and overflowing agreements require expert consensus projects to ensure that there are no unpleasant surprises down the line. And surprises can indeed be extremely unpleasant….