Commercial Property Option Agreements Solicitors

Our Commercial Option Agreement Solicitors have extensive experience in delivering high-quality, legally binding contracts for buying or selling property in the future.

For years, we have helped clients secure agreements that protect their financial interests and align with their business needs, allowing them to focus on other priorities.

Commercial Option Agreements serve as a strategic tool for both landowners and buyers, offering flexibility and security. We can assist in drafting and registering the agreement, guiding you through the complexities to ensure your interests are safeguarded.

If you are looking to buy or sell property in the future, get in touch today, and our expert team will be happy to help.

This service covers drafting a contract, based on the details you provide, for an agreement giving someone the right to buy or sell property in the future. If the agreement needs to be registered with HM Land Registry, that’s included. However, this service doesn’t involve helping you negotiate the terms of the agreement.

You might also want to look at our services for Exclusivity Arrangements and Overage Agreements.

What is a Commercial Option Agreement?

A Commercial Option Agreement is a legal contract between the landowner and a potential buyer of their property. It allows the potential purchaser to buy within a certain time period. In return, the landowner receives a non-refundable deposit which is often taken off the final purchase price of the property.

An option agreement offers an effective solution if you plan to buy a property in the future, for example, if you are awaiting planning permission. Other situations include:

• If a developer wants to buy land next to their existing site to extend their investment.
• If land is sub-divided between different owners, a buyer can buy the full site using option agreements with the individual owners.
• If a tenant wants to buy the property they are renting.

Whatever your circumstances, if you are considering a Commercial Option Agreement, get in touch with one of our experts today for tailored legal advice.

What are the types of Commercial Option Agreements?

Our adept solicitors constantly keep up to date with changes in the law, and work with you to find the most suitable contract. There are four main types of option agreements, each with a distinct purpose.

Call Option.
This grants the buyer the right to purchase a property at a fixed price within a specific period. It’s ideal for buyers who need time to evaluate the property or secure financing before committing.

Put Option.
Here, the seller has the right to require the buyer to purchase the property under agreed terms. It provides sellers with security, knowing the buyer is committed to the transaction.

Cross Option.
This mutual agreement allows both buyer and seller the right to buy or sell the property, depending on future circumstances. It is commonly used in partnerships for maximum flexibility.

Reverse option.
This includes provisions for an overage payment if the property’s value increases after a particular event, such as obtaining planning permission.

These types of agreements can be complex, and it is highly recommended that you seek legal help to guide you through the process. Our team are here to advise you on the best course of action, so get in touch today.

What needs to be included in a Commercial Option Agreement?

Every Commercial Option Agreement should be comprehensive and carefully drafted to protect your interests. Key elements typically include:

Right but no obligation: These agreements grant the buyer or seller the right to complete the transaction without imposing an obligation, offering both parties flexibility.

Time period: A defined timeframe during which the transaction can take place.

Land details: A clear description of the property covered by the agreement.

Option fee: The payment made by the buyer to secure the agreement, often credited against the final purchase price.

Agreed terms: Clear conditions for the sale, including the price and any other relevant terms, to minimize disputes.

Dispute resolution and termination conditions: Procedures for resolving conflicts and conditions under which the agreement can be terminated.

For call option agreements, registration with the HM Land Registry is also required. Our solicitors ensure that your agreement is legally sound and tailored to your specific circumstances.

What are the advantages of a Commercial Option Agreement?

Commercial Option Agreements offer significant benefits for both buyers and landowners, providing flexibility, financial security, and strategic advantages tailored to each party’s needs.

For buyers.

These agreements deliver the flexibility to secure a property without immediate commitment. This allows time to conduct due diligence, such as thoroughly evaluating the property, aligning business strategies, and securing financing before finalizing the purchase. They also minimize risks by ensuring that the seller cannot sell the property to another buyer if planning permission or other processes take longer than expected. Additionally, buyers can protect themselves against market fluctuations by locking in a fixed purchase price, offering security in cases where the property’s value is expected to rise.

For landowners.

Commercial Option Agreements provide a reliable way to navigate market uncertainty. Even during a downturn, these agreements secure an interested buyer at a later stage, often accompanied by a non-refundable deposit that provides immediate financial benefit. Landowners can also incorporate overage clauses, allowing for additional revenue if the property increases in value after the sale. Importantly, these agreements offer long-term security by locking in serious buyers, supporting financial planning, and ensuring that only committed tenants or purchasers are engaged.

By balancing the needs of buyers and landowners, Commercial Option Agreements create a mutually beneficial arrangement, fostering trust and certainty in future property transactions.

At Mounteney Solicitors, we understand the need for certainty over costs.

That’s why we offer a fixed fee of £1225 + VAT = £1470.

Your supplier is SRA-regulated Mounteney Solicitors, that charges VAT some customers may be able to reclaim

There is more about our fees on our website.

If you have any questions, require any further information, or would like to engage us on the T&Cs linked Our Terms in the footer below, please don’t hesitate to Contact Us.

Our Commercial Option Agreement Solicitors have a track record of delivering high-quality contracts, that protect your interests. We pride ourselves on our efficient and cost-effective service, and you can count on us for comprehensive advice.

For more than 15 years, we have helped buyers and sellers throughout every aspect of the option agreement process. For legal advice you can trust, appoint one of our Commercial Property Solicitors today.

From our offices in Bramhall, Cheadle, Hazel Grove and Heald Green, our solicitors in Stockport regularly help clients around Greater Manchester, including Alderley Edge, Wilmslow and Poynton.

If you are a buyer or landowner planning on entering a Commercial Option Agreement, don’t hesitate to contact us today. We would be more than happy to help.