Dispute resolution considerations
Disputes under either agreement often arise and tend to be over valuation, planning strategy, or sale proceeds. However, there are several ways to avoid a dispute, including by:
- Including clear dispute resolution mechanisms, such as arbitration or expert determination, in the contract.
- Setting transparent and independent valuation processes to avoid disagreements over land value.
- Ensuring strong communication between all parties throughout the process.
Which agreement is best for landowners?
Ultimately, the choice depends on the priorities of the landowners in question.
Those seeking certainty and minimal risk may prefer an Option Agreement, meanwhile those aiming to maximise value might find Promotion Agreements more attractive.
Either way, both types of agreement will require robust legal and valuation advice to avoid potential pitfalls and disputes.
If you own land with development potential, understanding these agreements is crucial to unlocking its full value.
Vail Williams specialises in guiding landowners through these complex arrangements, to ensure the best outcomes with the minimal amount of risk. Get in touch with our team of residential development consultants for more information.