Property Development Contracts: Advanced Issues

Key learning outcomes

• Understand the range of contract documentation for property development
• Appreciate when options can be exercised, triggers in conditional contracts, and obligations to sell
• How best to liaise and communicate with other professionals and third parties

This course covers the documentation you need to be familiar with, including:

• Exclusivity Agreements, Call Options, Put Options and Pre-emption Agreements
  • What they are
  • When to use them
  • The advantages and disadvantages of the different agreements
  • Protection under them
• Options
  • Pricing and valuation issues
  • Timing and extension
  • Control of seller's actions
  • Exercising options, and protection
  • Stamp Duty Land Tax (SDLT) issues
• Conditional Contracts
  • Triggers, e.g. what amount to 'satisfactory planning permission'
  • Affordable housing and other constraints
  • Defining 'onerous' conditions in a practical way
  • Calculating the price-valuation points and formulae
  • SDLT issues on sales and assignments
• Land Promotion Agreements
  • Key features and problems of land promotion agreements
  • Timescale
  • Valuation
  • Obligations to sell
  • Securing payment and dividing the spoils
  • Avoiding SDLT issues
• Liaison with other professionals
  • The importance of being a team player with your client's consultants and advisers
  • Communication and reporting issues