Option Agreement Conditional On Planning

The main problem with conditional contracts is that they quickly become complicated. Lawyers are often accused of stopping transactions, but the first question of a conditional contract is: “Does it become unconditional, regardless of the building permit issued for development.” The answer is always a business, “No, only if it is a building permit that can be built in a practical and cost-effective way.” At first glance, shouldn`t this be too difficult to put in the document? Could the treaty contain only those words? Who decides only if this condition is actually met? A developer`s profit forecasts could be very different from others. Contracts that depend on planning often provide that the building permit must be “satisfactory” to the buyer, as they are not willing to complete the transaction if the building permit does not allow them to carry out the development of their proposed plan on the land. A “satisfactory building permit” is often defined as a building permit that does not have an “incriminating” or “unreasonable” condition. Although they are apparently simple, these contracts must be treated with care by an experienced lawyer. If you get, for example.B a detailed building permit for the desired house on land that currently has consent to the structure, you have to deal with what happens if there is a refusal and perhaps a complaint, or the unpleasant planning conditions that make the project less attractive to you. A buyer will ask for as much control as possible over this process, so that he is not obliged to conclude the purchase if he has not obtained a building permit in the desired form, or only under unreasonable conditions or within the allotted time. A pre-emption contract is almost the opposite of an option agreement. In this case, it is up to the seller to decide whether he really wants to sell the land or not. If this is access, the seller must first offer to sell the land to the buyer during the duration of the pre-purchase contract. An option agreement is binding only on the seller – because the option holder may choose not to exercise it. If the owner does not exercise until the last day of exercise, he dies and is dead.

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