No single structure suits every site. Timing, planning risk, funding, tax, ownership and the landowner’s objectives should be considered before terms are agreed.
| Route | How it generally works | Potential advantages | Points to examine |
|---|---|---|---|
| Direct purchase | Land is bought under an unconditional contract after agreed due diligence. | Clear transaction and potentially shorter route. | Price reflects existing planning position and remaining risk; consents and lender releases may still be required. |
| Conditional purchase | Both parties agree a sale which completes when defined conditions are satisfied. | Can give both parties commitment while planning is pursued. | Define satisfactory planning, longstop dates, control, price and termination precisely. |
| Option agreement | The developer has a right to buy during an agreed period if it chooses, often following planning work. | Can enable the developer to fund risk before deciding whether to purchase. | Option period, price formula, minimum price, planning control and landowner protections need expert advice. |
| Other negotiated structure | Terms may combine exclusivity, phased purchase, collaboration or another bespoke route. | Can respond to unusual ownership or site conditions. | Complexity, tax, control and enforceability should be reviewed independently. |
| Promotion agreement | A promoter seeks permission and markets the land, usually sharing net proceeds. | Interests may align around maximising an open-market sale. | Fees, deductions, marketing control and minimum-price protections matter. This is explanatory and does not state that ARM Developments offers promotion agreements. |
Questions to resolve before signing
- Exactly what land, access and rights are included?
- Who controls planning strategy, amendments and appeals?
- How is the price calculated and independently tested?
- Who pays professional costs and what happens if the agreement ends?
- What are the timescales, extension rights and termination events?
- Are mortgage-lender or co-owner consents required?
Independent advice
Each party should use its own solicitor. Landowners should also consider independent valuation and tax advice before entering a binding arrangement.
Continue with our subject-to-planning guide or option agreement overview.