If both agreements are well negotiated, they can achieve a satisfactory result. However, consideration should be given to the particular circumstances of the land, its location, the characteristics of the local market and the planning legacy of the area in deciding on the best approach, which is why it is always useful to have professional advice. Reaching an agreement with a developer or developer can be an effective way for individuals to release additional value from their country, especially if they don`t have the time, experience or money to fund the promotion and planning process themselves. Transportation agreements are also beneficial because they effectively place the landowner and project proponent on the same side of the table, as they work together to achieve a common goal. Both landowners and developers would benefit from improved values in the construction zone, so both parties have an interest in maximizing these values. For landowners who want to maximize their profits from the land, working with an experienced developer kay and in the current economic climate, working with a developer or developer can trust you to maximize profits for all parties is the best option of all. However, the main drawback is that the landowner and developer sit on opposite sides of the option table and are thus on the hot seat under many conditions, including the purchase price and the amount of the overrun. This adversarial approach could complicate the conclusion of the agreement and even potentially derail the agreement. The transport contract, in which landowners and developers work in the same way for a common purpose, could therefore be negotiated more easily and therefore concluded.
For the landowner, an option contract can often guarantee a down payment and obtain a strong commitment from the developer to look for ways to purchase and develop the land after the building permit. Option and transport agreements are usually two of the most popular agreements. But what`s the difference? And when should we choose one for the other? A developer will agree to apply for a building permit (at their own expense) for the duration of the option and, if the developer has obtained permission and is satisfactory, he will be able to make use of his option to acquire the land. To address this deficiency, overcharged provisions are included in the option agreements to achieve the added value resulting from an additional building permit obtained after the option is exercised. This is especially useful when the developer obtains successive planning permissions in stages. Let`s first consider the simple difference between the two. A transportation agreement requires the developer to obtain all necessary permits for the development of the land, which will then be resold, with the developer sharing the profits of the sale with the original owner.