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
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