Promotion Agreements

When selling land for development, you may wish to consider entering into a Promotion Agreement.  It works as a kind of partnership between the landowner and the promoter, where both parties are focussed on achieving the best possible planning permission and then selling on the open market to the highest bidder.

 

The agreement does not allow the promoter to purchase the land themselves, so the incentive is to gain permission for the most appropriate (and valuable) permission.  As the site is sold on the open market, the sales price represents the highest market value at the time and there is confidence that the site is built out and sold, so that the developer can achieve their profit.