Promotion agreements can work well — but terms are everything.
Under a promotion agreement, the promoter will usually fund and manage the planning strategy, then market the land for sale once planning is achieved or the site is otherwise ready. The promoter is normally paid from sale proceeds under a pre-agreed fee or percentage structure.
Key points to review
- Promoter fee or percentage and whether costs are deducted before or after the fee.
- Minimum price, valuation method and reserve protections.
- Promotion period, longstop dates and termination rights.
- Who controls planning strategy and sale strategy.
- Whether the land will be openly marketed to maximise value.
- How Section 106, abnormal costs and infrastructure deductions are dealt with.
UP Land Solutions can give a commercial second opinion before your solicitor reviews the legal drafting.