Pre-sale Agreement Template

[freshstart]

Can anyone point me in the right direction please?

I am trying to find a free template for a 'conditional sale agreement' or 'option agreement'.

I am interested in purchasing some freehold land off a local farm. In principle the owner has agreed to sell but I don't want to go through the expense of obtaining planning permission for the owner to then back out of the sale. So to protect my interest (and the owners), I understand we can sign an agreement which covers this and other conditions before the sale can proceed.

Any help would be appreciated.

[wales01man]

Re: Pre-sale Agreement Template

A Solicitor would draw up this type of agreement doing it without professional help may cause problems especially if large sums of money may be involved after and if planning is granted

[freshstart]

Re: Pre-sale Agreement Template

Thanks. I am trying to avoid Solicitors at this stage for all the obvious reasons. If we get to actual purchase then Solicitors will be necessary.

The contract/agreement does not need to be complicated, in fact plain English which we will both understand is the key. I do not want either party to feel like the other is trying to gain any advantage.

So what makes a contract or agreement legally binding? I hope the answer is not 'because a Solicitor wrote it'

[Diana M]

Re: Pre-sale Agreement Template

Have you considered an application for outline (not full) planning permission which would give you some commitment? You don't have to own the land to do this.

You've not said what you intend to build on the farmland but it may make sense to get a 'fast No' or an indication of a 'thumbs up' from the Local Authority before committing to the purchase.

For example if this land is in a Conservation Area planning options may be limited. Ditto Green Belt areas etc. Why don't you arrange to meet the Planning Officer on site to discuss what is likely to be accepted or rejected.

The planning fees you wish to avoid wasting (and the procedure) are listed on here >

https://www.planningportal.co.uk/inf...how_to_apply/4

Di

[R0b]

Re: Pre-sale Agreement Template

Its possible, but as with any drafting of a contract if you don't get it right then you could be exposed hence the usual requirement for a solicitor to do this sort of stuff.

A binding contract is essentially, an offer, an acceptance of that offer, and consideration and intention to create legal relations.

If you were to do this yourself and take the risk, then you would need to include some of the following (not exhaustive)

1. Identify the parties i.e. you and the owner of the land.

2. The land to be purchased would need to be sufficiently identified either by way of Title number or the actual address of the land to be purchased

3. Consideration, which is something in return for something else. As you are going to be paying the purchase price of the land when solicitors would be instructed, you could make reference to the consideration by way of a 'peppercorn' or a nominal amount such as £50p, £1 etc. and state whether payment has been acknowledged or not. Something like the following: "in consideration of [peppercorn / £1 / £0.50], of which the consideration is acknowledged as having been paid, the landowner agrees ...

4. You could put a time limit on it also if both parties agreed, such as "the landowner shall execute in favour of [YOU] within a period of X months from the date of this agreement transfer the said land

5. who pays planning permission and fees etc.?

6. Then you might want to think about what happens if the agreement is breached, do you want to be indemnified for all costs and expenses incurred leading up to the breach? do you want to have a right which allows the court to order specific performance in that the Court shall order the landowner to sell the land to you?

There's also lots of other things to consider so although you want a simple agreement, reality is that it is not so simple.

[freshstart]

Re: Pre-sale Agreement Template

I was not able to post a reply last night for some reason, but wanted to say thanks for the information.

That has given me plenty to think about.