Conditional Agreements

When purchasing land for development, it is unlikely you will want to buy the land straight from the landowner. This is due to the risk that you will not be able to obtain suitable planning permission or there might be third parties involved that are difficult to remove.

Possible solutions that allow the developer to secure the land without the obligation to pay until they are sure that the land is suitable are conditional or option agreements. Our Commercial Property team have considerable experience in both conditional agreements and option agreements.

A conditional agreement outlines the conditions that need to be met and both parties are bound by the terms of the agreement. If the conditions are met, then formal completion will occur.

The most common conditions in a conditional agreement are:

  • Planning permission being obtained
  • Vacant possession being obtained
  • Consent for assignment in the case of leasehold property
  • The buyer obtaining a satisfactory survey

There are many benefits of a conditional agreement. The advantages for a buyer are that the seller is committed to selling the property at the set price if the conditions are satisfied within the time frame. If the conditions are not satisfied, the buyer can walk away from the purchase, however, they may have already incurred wasted costs, particularly in the case of a planning application.

Benefits for the seller are that if the conditions are satisfied, they may receive a higher price for the property than if it had been sold on an unconditional basis. This agreement provides the seller protection by preventing the buyer from walking away if the conditions are met.

Problems can arise if the parties have not been clear about the conditions and who is responsible for them. It is crucial to involve your solicitor at an early stage to ensure clear contract terms are agreed upon.

Our proactive and professional team can assist in the drafting and negotiation of a conditional agreement and will always be on hand to answer any questions you may have or deal with any issues that may arise.

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Commercial Property Testimonials

I just wanted to let you know how impressed my wife and I have been with Emily’s work on our recent purchase of some garden land.  I have acted as a chartered surveyor and arbitrator in commercial property for over 40 years and was highly impressed by her great ability, impeccable communication and proactive approach at all times.  She is a credit to your firm and I will always ask her to handle our property matters going forward.
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Prompt and professional service. Always on contactable to cover all technical queries. Howard’s thorough approach made the process comfortable and put our minds at rest to concentrate on running our business. Would definitely recommend
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We have been working with Howard Bailey for 3+ years. He is outstanding. Great listener. A real asset to our business together with his team of associates so much so that we feel he is a member of our team.
Legal 500, 2022