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Buachaill, Barrister
Category: Property Law
Satisfied Customers: 10972
Experience:  Barrister 17 years experience
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I own some development land. I have given an option to another

Customer Question

I own some development land. I have given an option to another person to purchase my land within a period of 15 years at an agreed price. The option is not registered at the land registry
The council are now taking steps to compulsory purchase the land. Can the council continue with the compulsory purchase powers and will they have to compensate the prospective purchaser who has the option for the sum that was agreed for the land..
Submitted: 2 years ago.
Category: Property Law
Expert:  Buachaill replied 2 years ago.
1. Here the Council will only have to pay you the price of the development land today. The option holder will get nothing as the option holder hasn't registered his interest as a burden in the Land Registry. This is a glaring error on the part of the option contract holder. Secondly, until the strike price is paid and an option holder buys the land, in strict point of law, the option holder has no right or interest in the land. The "owner" is you and the Council do not have to compensate the option holder as they don't own an interest in the land. Merely a putative right to buy the land at a certain price in the future upon payment of the strike price. So if the Council CPO the land, they will merely be paying you the current market value of the land. The option holder gets nothing under a CPO. The option holder would have to exercise the option to obtain a right to compensation. As until an option over land is exercised the option contract gives no right in the underlying property.