This sub-file also includes one minute of board of directors, a shareholder decision and an opinion on the exercise of the option, all of which can be used with an EMI option scheme. Louise Norris, partner in our commercial property team, explains what an option agreement is and why the parties to the purchase of land want an option. After reviewing various factors and obtaining the fairness notice and assuming that i3 Energy would exercise its option under the option agreement, the Toscana Board of Directors (i) unanimously decided that the agreement arrangement was in Tuscany`s best interest and was fair to the holders of Lascana shares; and (ii) recommends that holders of Tuscan shares vote in favour of the agreement from the date of this agreement. The real estate market has experienced its ups and downs over the past 10 years. An option agreement does not guarantee the sale. When entering into an option contract, the landowner often has to give a standard guarantee to the developer, which means that the seller cannot sell the land in full to a third party during the agreed period of the option. The downside for the seller is that if the developer does not get a building permit and withdraws from the option, the purchase would not continue. A land has a higher market value after a dwelling house has been built on it. Often, in addition to the option contract, an overspend agreement would be negotiated, so that if the land were to appreciate significantly after the land had evolved, the seller could, once completed, obtain an additional payment calculated on the added value. An option contract is an agreement between a landowner and a potential buyer (developer) of the landowner. When the parties enter into the contract, an agreed payment is often made to the owner of the land and, in return, the buyer receives a first contractual option for the acquisition of the property. The purchase must be made within the option period (which may take several years) or as a result of a trigger event, such as.
B issuing a building permit for development. A developer may agree the purchase price with the landowner at the beginning of the option contract. This means that it is the security of upfront costs and developers may end up paying less than the market value.