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Contracts conditional on planning permission to be granted

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When it is fairly certain that a planning permission will be granted then a developer or a land owner may enter into a contract for the sale of the property on condition that planning permission is obtained.

The seller’s objective are:-

  • To see planning permission granted that includes the maximum development potential as soon as possible.
  • To oblige the buyer to pursue actively its application for planning consent and any appeal against a refusal or adverse planning condition.
  • To consider the impact of any planning permission so that if the scheme does not proceed the seller can sell with the benefit of the planning  permission at an enhanced price or can develop and well it completed.
  • To consider the impact of the planning permission on the value and use of any adjoining or neighbouring land in which the seller has an interest.

The buyer’s objectives will be:-

  • To buy the land with the benefit of the planning permission which enables the buyer to develop the site and generate the development profit which it requires and the buyer will want the planning permission to (i) meet the buyer’s relevant requirements (ii) give the buyer maximum flexibility (iii) be free from onerous or unacceptable conditions (iv) to be given within a time frame that is acceptable to the buyer and the buyer will not want (i) to be obliged to purchase land that cannot be developed in accordance with its proposals (ii) to be obliged to pursue a refusal planning permission or against a planning permission imposed in circumstances where the buyers are likely to proceed or whether economically are acceptable.

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