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About this document
This is a comprehensive legal document setting out the terms and conditions for a non-assignable and time-limited right of pre-emption over land.
A right of pre-emption is exercisable by the buyer, on the happening of a trigger event caused by the vendor - such as a decision to sell the land at all. A right of pre-emption is not as strong as a regular option - it is just the right of first refusal if the vendor decides to sell the land. If the vendor does not decide to sell in the pre-emption period, the prospective purchaser cannot force the vendor to sell. Compare this with a standard or regular option agreement, which is a right to buy within the option period, exercisable by the prospective purchaser at will.
It is suitable for a either a prospective purchaser or a landowner. The effect is that the purchaser will be given first refusal when the landowner decides to sell the land within a certain period agreed by the parties.
The right may be registered with the Land Registry to prevent anyone else buying the land, regardless of the right of pre-emption. The procedure for notifying of the trigger event to enable the purchaser to exercise his right is set out, together with the way in which the purchaser accepts the owner's offer to sell the land and what happens if the purchaser rejects the offer. The form also sets out the usual legal provisions in such an agreement, including dispute resolution and payment of any VAT which is payable in respect of the land as a result of development.
We have a similar pre-emption agreement, which is assignable here.
Application and features
- Sets out a clear and logical structure by which to grant and exercise a right of pre-emption over land;
- Suitable for grants of most types of pre-emption;
- Written in plain English;
- Includes explanatory notes.
Contents
- Grant of pre-emption right
- Trigger event to exercise it
- Pre-emption procedure
- Exercise of pre-emption right – in letter form, as a schedule to the agreement
- Effect of rejection of owner's offer to sell
- Registration of the pre-emption right
- Entire understanding provision
- Provision about notices
- Severability of any paragraphs found defective
- Provision that the agreement is not assignable by the buyer
- Mediation and Arbitration
- Provision concerning Stamp Duty and VAT
- Other legal provisions
- Explanatory notes and guidance.
