Option Agreements: The Importance of Having a Restriction

Charlette from our Corporate & Commercial Team has written a great post about the importance of having a restriction when entering into an option agreement.

Option Agreements are becoming increasingly popular within the property industry. Registering a restriction over the property in favour of the option holder is a strong recommendation for option holders.

Why?

Although you will have your usual contractual remedies under the contract including suing for damages, this is usually a lengthy, time consuming and costly process.

The restriction is in a standard form and sits in the restrictions section on the property title. This means that anyone downloading the title will see the option holder has the restriction and has an interest over the property.

Registering a restriction over the property protects the option holder’s interests over the property and will ensure that the property owner physically can not sell the property to anyone other than the option holder, without the option holder’s consent.

If you wanted to discuss purchase lease options further, please contact us at welcome@bradleyhayneslaw.co.uk or call us on 01905 900 919.