A well drafted Planning Promotion Agreement for a landowner will consider:
- Safeguards to the sale. For example – is there a minimum price? Do you have to sell? What if the market is suffering a downturn?
- Tax – specifically capital gains tax and any available tax reliefs to minimise liability.
- The position of the promoter on cost sharing. Are these costs capped and are they to be fully reimbursed from the sale proceeds or will the promoter share the costs of the promotion?
- The size of the tranches for sale – is it better to split up the site and deal with multiple developers?
If you are a land promoter, you will need to ensure your fees and costs are clearly addressed and defined in the PPA.
Most housebuilders will have a strategic part of their business that investigates and secures planning permissions to bring forward land in the emerging local plans, and they will seek to demonstrate why one area of land ought to be brought forward for development earlier than other areas. They will be highly skilled in ensuring agreements meet their future objectives – but these objectives may not reflect those of the land owner or agent!
A well-executed PPA that matches what was agreed, understands the motivation and addresses the potential pitfalls will ensure you are protected, and give you peace of mind should something go wrong.
At Brady Solicitors we act for promoters and landowners
When considering planning promotion agreements do you have the right expert on your side?
Landowners, land agents, and promoters – the planning promotion agreement needs to work for you.
A well drafted planning promotion agreement (or PPA) can protect all parties and reduce the risk of a dispute when promoting and selling land.