Glossary
Investment Management
Option Agreement
In the property world, an option agreement is akin to a financial option. It is a contract between a landowner and a property developer where in return for payment of an option fee, the landowner grants the developer an option (but not an obligation) to buy land at any time during the tenor of the agreement. The developer will use the option period to seek planning permission, which, if granted, will lead to exercise of the option.