Property Development

As a developer purchasing a new development site, you will need to enter into a contract with the seller. This is often a ‘conditional contract’ which is not legally binding until certain criteria are met, e.g. planning permission or vacant possession.

Once all arrangements are in place, the developer must go ahead with the purchase. An alternative to this is an ‘option’. This gives the developer greater freedom, with no obligation to proceed with the purchase. Instead, it gives the developer the ‘option’ to purchase. Our team will explain the differences between these and how they might apply to your situation.

When land is sold to a developer, an overage or clawback arrangement can allow the landowner to receive an additional payment if the land later increases in value because of how it is developed or used. In simple terms, it helps ensure the landowner shares in some of the uplift in value created by the development, rather than receiving only the original sale price.

Our team can advise on drafting clear overage terms, covering what triggers payment, how the extra value is calculated and how to register your right so it stays protected as the development changes.