In brief - Property owners and property developers can have
competing interests
As a real estate agent, you can be engaged by a developer or by
a group of owners to negotiate options for sites which have
development potential.
What are the things that you need to consider when conducting
negotiations between the owners and the developer, bearing in mind
that they obviously have competing and sometimes conflicting
interests?
This article continues the discussion begun in our earlier
article,
Option agreements from a property developer's
perspective.
Questions to consider when negotiating options
The questions you need to consider are the following.
- Are the commercial parameters clearly
understood by both parties? These are the nature of the option
(whether it is a call option only or a put and call option), fees
to be paid, extensions to which the developer is entitled, the
price (and any formula for uplift depending on the outcome of
development
