Take care dealing with developers

By FWi staff

FARMERS considering granting a developer an option on some of their land need to be careful when striking a deal, warns one firm of specialist solicitors.

Robert Swift, head of farms at Salisbury-based Wilsons, says declining agricultural incomes mean selling farmland for residential or commercial development could be very tempting.

In such instances, the developer will foot the bill for gaining the relevant planning permissions needed in return for an option to buy the land at its increased market value.

Although at first glance, Mr Swift says, such agreements appear lucrative, they can often be too good to be true.

“Once an option agreement has been entered into the landowner can lose much of his ability to control the terms upon which planning permission is obtained, or if it is obtained at all.”

Farmers should seek a contractual agreement from the developer that it will not promote another site to the detriment of their own plot, says Mr Swift.

An independent surveyor should also be appointed as an arbiter in the case of disputes, he adds.