What Is A Property Option
What Is A Property Option?
When The Property Block contacts you with an interest in purchasing your property it is because our development experts, aided by our software, have identified that your property is a good candidate for development.
In order to proceed with creating a detailed plan for development, and to submit the plan for planning permission, we need to know that when planning permission is granted you will be willing to sell your property to us.
To secure this arrangement we enter into a legal agreement with you that is known as an option.
The first thing that we do is agree a purchase price with you that will be paid once planning permission is granted. Because we are asking you to wait until planning permission is granted before you receive the payment we will sweeten the deal by agreeing a purchase price which is above market value, sometimes by up to 35%.
When the purchase price is agreed we both sign the option. This option is a contract that stipulates that you will sell your property to us for the agreed price once planning permission is granted, and also that we have to buy your property for the agreed price once planning permission is granted.