Options to purchase property—Scotland
Produced in partnership with Emma Gray of Blackadders and Melanie Ballantyne of Blackadders

The following Property practice note produced in partnership with Emma Gray of Blackadders and Melanie Ballantyne of Blackadders provides comprehensive and up to date legal information covering:

  • Options to purchase property—Scotland
  • Types of option agreement
  • Use of option agreements
  • Common terms to consider in option agreements
  • Longstop date
  • Extent of property
  • Price
  • Planning obligations
  • Community right to buy—considerations
  • Premium and LBTT
  • More...

Options to purchase property—Scotland

Coronavirus (COVID-19): Developers will need to consider the impact of coronavirus (COVID-19) on timescales to obtain planning and all necessary consents. All existing option agreements should be reviewed to ascertain whether any timescales need to be extended with landowner consent. When drafting an option agreement, consideration must be given to including an extension clause for time limits where there is disruption and delay due to coronavirus. For further information and guidance, see Practice Note: Coronavirus (COVID-19)—property in Scotland—Missives—longstop dates and for an archive of news on Scotland and Scots law developments, see: Coronavirus (COVID-19)—Scotland tracker—Property and Property disputes.

Types of option agreement

Reference is often made to ‘put’ option agreements and ‘call’ option agreements. A call option agreement is one where the buyer can call upon the seller to sell a property (or part of it) to the buyer. A put option is one in which the landowner can call upon the buyer to purchaser the property.

Under a pure call option, a buyer can call upon a landowner to sell the property to it at any time during the option period. A put option is the converse and is much less commonly encountered. It is possible to have a combination of both known as a ‘put and call’ or cross option where either party can call upon the other to buy or sell

Popular documents