For a developer, these types of deals minimize the risk – if the building permit takes a long time, there is no risk that the seller will decide to sell to someone else, but their pre-expenses are much lower. For the landowner, he receives an immediate payment that he can keep, whether the sale takes place a posteriori. An option is a device that allows a buyer to buy an “opportunity” to buy the land himself later. A buyer normally tries to buy an option if he wants to force the seller to sell, but before another event. However, to protect yourself, you need a watertight written agreement. This is especially important for an option contract, given that the option holder so often takes steps to commit either to purchase or to increase the value of the item. Somehow, the seller would be tempted to change the terms if you hadn`t tied it! Notoriously complex and overflowing agreements require expert consensus projects to ensure that there are no unpleasant surprises down the line. And surprises can indeed be extremely unpleasant. For example, in Ministry of Defence v. County and Metropolitan Homes (Rissington) Ltd, the parties neglected the developer`s ability not to demolish the 37 houses on the land in question. Since they only snatched 35 of them and turned two properties into a store, the developer had to pay a total of nearly 1 million pounds in overruns. The same applies where the beneficiary`s interest in a land trust results from implicit, resulting or constructive trust and not from a document. Interest can only be protected by restriction, not by notification, and again, the RX1 application should normally be in favour of a limitation in form A.
The declaration in box 12 of Form RX1 or the sponsor`s attestation in box 13 shall specify how the beneficiary was interested in the implicit, resulting or constructive trust in the country. Ask yourself if you can help me. So here is this property that interests me, it is a commercial property worth 300K. It consists of several shops and offices, but it is supported by the main store leased to a bank whose lease expires at the end of this year. This bank has been in existence for almost 30 years. It belongs to a company whose only asset is this building. There is also a mortgage of about 185K of mortgages to unpaid. I am interested in buying it as a store/Going Concern and can buy it in cash. The seller is ready to sell and I`m ready to buy, even if it`s not really on the open market yet. It should also be noted that the bank has already chosen the owner and also had its first appointment with the intention of extending. For security reasons, you must register a call option agreement with the HM cadastre.
The security includes a communication on the option agreement indicating that the potential buyer is entitled to the land when the event necessary for the execution of the option takes place. In the case of a pull option, the performance of the contract is controlled by the seller, so the buyer has no execrable rights over the country, so there is no reason to register this type of option agreement. An interest in a country trust can only be protected by a restriction.