Options are a long-established method employed by housebuilders to acquire land for development. An Option will allow a housebuilder to call on a landowner to sell to the housebuilder a particular property at some point in the future. In return the housebuilder agrees to bear the cost and risk of obtaining planning permission.
Options are commonly exercisable on the obtaining of planning permission and usually the decision whether or not to exercise the option rests with the housebuilder. The price of the property will usually be at a discount to market value to compensate the housebuilder for the risk of applying for planning permission. Davies and Partners have a long-established practice in advising both developers and landowners on the provisions of Option Agreements