An option agreement is a contract between the seller and a potential buyer. The buyer acquires the right to decide whether they want to buy the land or not within a given timeframe. The seller must then sell if the buyer decides to buy. For example, a developer could obtain an option to buy before seeking planning permission – then they are not compelled to buy if planning permission is not granted.
A conditional agreement is a contract for the sale of land subject to certain conditions – usually that the buyer can obtain planning permission for development. This is a more formal contract and usually requires planning permission to have been obtained (or the condition to be fulfilled) by a certain date for the sale to proceed.
At Richard Griffiths & Co our experienced commercial property team can advise you on the advantages and disadvantages of option and conditional agreements in your particular situation and will draft the necessary documentation on your behalf.