Hybrid agreement: a mix of option and promotion agreement. We would try to apply this agreement as a tailor-made solution to meet the needs and location of the different landowners. In this way, Hybrid can react dynamically to any market opportunities that arise. This can be the installation of infrastructure and site maintenance, installation or development of the land, while nuanced, a hybrid agreement allows us to be more creative and create complex business with special buyers when a higher value can be reached. Therefore, the potential to allow the landowner to obtain additional capital income may be positive for both the landowner and the purchaser, but there are potential pitfalls that require careful navigation. If you need advice, please contact a member of our Commercial Property team. Hybrid agreements are increasingly being used by home builders and their agents to convince landowners that they are getting the “best of both worlds.” The arguments are that they have the advantage of a large home builder (ensuring confidence in delivery) and at the same time maintaining an interest orientation by the hybrid nature of the documents. The theory is that the hybrid agreement is based on a transport agreement with the manufacturer and then has the right to develop some of the land. Owners often ask us what is the best way to manage the development value of their land when the building permit can be issued. What does it take to exploit the development potential and then get a maximum increase in value when the property is later sold to developers? (iv) to complete due diligence, location studies and financing commitments, so that, when providing “satisfactory” planning for the parties (with the agreement that establishes “unsatisfactory” consent), the contract becomes unconditional and the property is sold at a price reflecting the value of the land as part of the actual planning. Option agreement: this traditional approach is simple, proven and relatively quick to enter. The landowner is certain that Hybrid has agreed to a sum and acquires the land with a completed building permit.

A developer may agree the purchase price with the landowner at the beginning of the option contract. This means that it is the security of upfront costs and developers may end up paying less than the market value. However, each price is often subject to the deduction of unforeseen costs. Identifying the appropriate land for development, analyzing the market context and planning, visiting the site and the master plan. Feasibility and development study for the assessment of the country`s residual values. Evaluation of the strategic approach to obtaining a satisfactory building permit Louise Norris, partner in our commercial property team, explains what an option agreement is and why the parties to a land purchase transaction want an option. Home > What are a landowner`s options for strategic rural development? Sometimes developers take the initiative to identify land with potential for residential, commercial or mixed development. They will submit to a landowner, perhaps inexperienced, their own form of agreement using their own standard terms, probably strongly formulated in their favour. It is helpful to obtain comprehensive legal advice before such a contractual commitment is made. Experienced legal counsel can ensure that the interests of the landowner are fully protected. A conditional contract can be a useful way to reach an agreement with a developer whose values are unlikely to change significantly during the conditionality period and if it is necessary to give the developer control over the final form of the planning authorization.