Promotion Agreements

Experts In Promotion Agreements

Promotion Agreements are a joint venture where the landowner appoints a promoter to obtain planning permission for development with a view to marketing the land with the benefit of that planning permission to find a buyer. Other Commercial Property areas we cover include:

The Promotion Agreement Process

The planning process can be lengthy and so these agreements are not designed for short term gain or a quick sale.

Typically a developer agrees to promote and obtain planning permission for the land and takes reasonable steps to make this happen. In return, for the ‘promotion’ of the land the developer will receive a fee, typically a percentage of the sale proceeds after deductions.

Whilst Promotion Agreements often contain similar obligations, in terms of pursuing planning permission, to the traditional methods of securing sites for development (such as Option Agreements and Conditional Contracts) they do not entitle the promoter to acquire the land as a result of planning permission being obtained.

Promotion Agreements can be a preferred route for a landowner due to the following factors: 

  • The landowner is not obliged to sell the land once planning permission is granted. Instead, the land will usually be marketed for sale on the open market
  • The promoter is less likely to enter into planning agreements which are unreasonable because that will have an adverse impact on their share of the proceeds
  • Whilst realising the profits may be a lengthy process, a promotion agreement could be beneficial as the landowner and promoter have a common interest to maximise the development value

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