Option Agreement (Landowner Calls & Developer Puts)

This is an agreement between a landowner and developer that gives the developer the option to buy the land at a later date, and gives the landowner the option to sell the land to the developer at a fixed price if the developer does not exercise the original option to buy.

• The landowner grants a developer a call option to buy land and the developer grants the landowner a put option over all or part of the land in the event that the developer does not exercise the call option

• If the call option is exercised, the purchase price is calculated as a percentage of the property's market value with the benefit of the planning permission that is obtained by the developer

• If the put option is exercised, the sale price is an agreed fixed amount