The following Property guidance note provides comprehensive and up to date legal information covering:
Option agreements are strictly construed and the option may be lost if the option holder does not exercise it correctly.
An option agreement is a contract for sale and must comply with the requirements in section 2 of the Law of Property (Miscellaneous Provisions) Act 1989. This means that it must:
be in writing
contain or incorporate all of the terms expressly agreed by the parties, and
be signed by or on behalf of the parties
The trigger notice, however, is simply the activation of the option and so is not a contract for sale itself. Consequently, the trigger notice does not need to be signed by both parties.
Where the option agreement specifies time limits for the service of the trigger notice, time is of the essence.
The option will usually specify that the grantee must exercise it within a specified period of time. If the option is not exercised within that time then it will lapse. A notice of an intention to exercise the option given without authority within the option period cannot be made effective by ratification after the end of that period. The option holder must therefore ensure that, if the buyer is to obtain planning permission before exercising the option, the period allows sufficient time for planning applications
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.