Promotion Agreements are an increasingly common way for landowners to secure planning permission for new development on their land.
With the planning system more complex and expensive than ever, Promotion Agreements allow landowners to access the expertise of a specialist land promoter without any cost or risk.
The land promoter will run the project and cover all the upfront costs in return for a share of the site’s value when it is sold. That means that the interests of the landowner and land promoter are squarely aligned - to secure the best value for the site in the shortest possible time. It also means that if the land promoter isn’t successful, it doesn’t cost the landowner anything.
That’s a stark contrast to the Option Agreements used by house builders, where the landowner agrees to sell the site at a future date of the house builder’s choice and for a price to be agreed at that time. Negotiating a price after legally committing to sell the site puts the landowner at a distinct disadvantage.
You can find out more about the differences between Option and Promotion Agreements here.
If you would like to find more information on what should be included within a land promotion agreement, read our handy guide here.
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