Option to buy land and property: extension of term subject to conditions
This option agreement provides for extending the exercise term subject to any condition you require, such as a delay in a local government decision to upgrade a road, for an additional consideration. It is suitable for deals in any type of land or property. It is a comprehensive version that covers conveyancing requirements thoroughly, and that incorporates a specially edited version of the Law Society Commercial Conditions of sale.
About this option agreement
Using an option agreement to buy land or property for development allows a buyer to minimise risk, whilst at the same time providing the seller with a payment regardless of whether the buyer exercises the option. It can help incentivise a property owner to cooperate in securing the future event the developer is seeking and, depending on the sale price agreed, let the buyer buy at a discount to future market value.
However, sometimes the future event that increases the value of the property doesn’t occur as quickly as originally envisaged. In these situations, often the option expires and the option holder loses the right to buy. This template mitigates against this risk by giving the option holder the right to extend the option exercise term at any point in return for an additional payment to the seller.
When to use this option agreement
This template differs from others Net Lawman offers in that the extension of the option exercise period lasts until an agreed event happens. The buyer may be concerned that a fixed extension period may be quite impossible to calculate. The only way he can cover himself is to have an extension as long as one or more conditions may be outstanding.
In this way the seller receives more money in return for extending the term, but the buyer does not have to put out more money than necessary to secure the deal in circumstances where he may not be able to control the timing of events.
You might use this agreement for buying land or buildings with a view to development before:
- local government has decided to build infrastructure (such as a new road or rail link) in the area
- a company has decided to create a new distribution centre nearby, creating jobs in the area
- a geological or archaeological survey has been completed
This agreement can be used for securing an option on any type of land and/or buildings, and with a view to buying the property for any reason. These might include:
- house building
- redevelopment of light industrial buildings
- refurbishment of offices
The document also includes an exercise letter template, which can be used by a buyer to exercise the option before the expiry date stated within the agreement.
Property options are an area of law in which Net Lawman specialises. You can find our complete range of templates at: Property option agreements.
Option agreement application and features
- Sets out a clear and logical pathway for exercise of the option
- All variables are clear and in one place
- Suitable for a variety of land types and situations
- Includes an exercise letter template
- Incorporates the standard commercial contract terms of the Law Society’s Commercial Conditions, with amendments tailored to this precise deal
- User friendly: includes invaluable user notes to guide you through to successful execution
- All the variable matters in one place for ease of completion
- The essence of the agreement
- Calculation of price or additional price or extended option
- Registering the option and HM Land Registry
- Provision for buyer to nominate the purchase to someone else
- Buyers warranties
- Sellers warranties as to the current planning status of the land
- A director’s guarantee, in case the seller is a company
- Inclusion of any unregistered rights over adjacent land
- A separate notice letter to exercise the option
This document was written and is maintained by solicitors at Net Lawman to comply with current English law.
Buy from Net Lawman
Reasons to buy from Net Lawman
Guaranteed to be the right document
This document comes with a full money back guarantee. You take no risk that it might not be right for your situation. Once you buy it, we’ll give you 30 days to evaluate it in any way you want. If for any reason it's not right, just e-mail us and we’ll refund your money in full immediately. Read more about our guarantee policy.
Every document is drawn by an experienced, qualified lawyer and reviewed by another - just as in any law practice. We incorporate changes to the law quickly so that our documents are up to date. Read more about how we draw our documents.
Real world experience added
As much as possible, our documents and guidance notes incorporate practical angles that only lawyers with commercial experience could include. Our drafting team have not just many years experience advising clients in practice, but also have the experience owning and managing businesses in a wide variety of industries. Our documents aim to give you an edge as well as achieving a legal outcome. Read more about the Net Lawman team.
We write our documents in language that everyone (and not just lawyers) can understand. Not only does this make your task of editing the document easier, but it also decreases the likelihood of another party breaking or disputing the agreement on the grounds of not having understood the terms. Read more about why plain English is important in legal documents.
Easy to use, even if you have no legal knowledge
Many of our customers are lawyers, but our documents don't require you to be one. Wherever it may be needed, our guidance notes explain the purpose of each paragraph, whether we recommend changing it, and what you might like to consider before you do so.
Our view is that, when editing our documents, you shouldn't have to worry about how to add legal wording. So our documents consider a far greater range of issues than our average customer will need, and because we avoid cross referencing paragraphs, we make it easy for you simply to delete what you don't need without affecting the rest of the document.
Support from lawyers if you need it
Our legal team is on hand to help customise a document in an unusual circumstances, or even to draft a document from scratch. Read more about our contract drafting service.
Buy once and reuse
When you buy a document from us, we grant you a licence to use it again. Keep the master copy safe and create new child documents from it whenever you need them. This applies to lawyers in practice as well as individuals and businesses.
Document download and delivery
Immediately after payment, you can download your document from our website. We also deliver immediately by email, but delivery is out of our hands and may take a few minutes.
Contact us about this document
If you have any questions about this document that we don't answer in the text above, please contact us and let us know how we can help. We aim to reply within 24 hours.
Leave feedback about this page
If you have noticed a bug or a mistake on this page, or just want to give us feedback, we'd love to know. Nothing is too small or too big. Send your message on this feedback page.
"If only everything was as reliable as NetLawman. We have used them on numerous occasions & they deliver without fail. Whether we require off the shelf legal documents, bespoke contracts or even ad hoc advice they are there for us. It is like having our own legal team but without the costs that this would entail. Pickaweb has no hesitation in recommending NetLawman as one of our best suppliers."Pilar Torres Wahlberg
"Quoted £1000 by my companies law firm - paid £10 with Net Lawman."Spicer and Moore Ltd.
"Paul Adams Associates Legal Services has used Net Lawman online legal documents on numerous occasions and have found their service to be very efficient and cost-effective. I have no hesitation in recommending Net Lawman to my associates."Paul Adams