Promotion Agreements Specialist promotion agreement solicitors in Milton Keynes

Once planning consent has been issued, the promoter will deal with the marketing and sale of the land. On the eventual sale, the promoter will receive an agreed percentage of the net proceeds of sale after their costs have been taken into account.

At Heald Solicitors in Milton Keynes, we represent landowners, developers and promoters in negotiating and agreeing promotion agreements.

Agreeing the terms of a promotion agreement

A promotion agreement is a legally binding contract. The landowner does not generally provide any money towards obtaining planning consent, with the promoter’s payment coming entirely as a share of the eventual sale.

This means that the promoter is encouraged to do what they can to achieve the best price for the development site. They may have local knowledge which helps them market and sell at the right time.

The promotion agreement will be tailored to suit the exact circumstances of the case, to include specified timeframes for obtaining planning permission and sale.

Advantages of a promotion agreement

A promotion agreement allows both the landowner to benefit from the potential value of the land without having to tackle planning issues themselves, while the promoter can profit without having to fund the purchase of land.

The final share of profits is based on the actual sale price achieved, while other methods such as options involve valuing the land.

With a promotion agreement, the promoter and landowner both have the same objective, of achieving the best price. There is flexibility to delay the sale to take advantage of rising market prices.