Promotion Agreements - What Are They?
Blog
1/6/2021
Now more commonly used than 'option agreements', a promotion agreement is basically a partnership between the landowner and the property developer to gain planning permission for the land.
The property developer usually funds the planning process. Using their expertise and experience they, on the whole, have a better chance of obtaining planning permission than an individual who is approaching the complex process for the first time.
The advantage for the landowner is that there is no outlay, the planning process is fully funded by the promoter.
If planning permission is obtained, the land is sold, or a property is built on it. When sold the promoter's costs are reimbursed out of the gross sale receipts and they receive a proportion of the net sale proceeds as set out in the initial agreement. The landowner gets the balance.
The advantage for the landowner is that there is no outlay, the planning process is fully funded by the promoter.
If planning permission is refused, by a date outlined in the original agreement, the agreement automatically terminates and the promoter's costs are not reimbursed.
Does your land have development potential? We're interested in helping you obtain planning permission at no cost to you! Enquire now.