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Option Agreement Land Template for Nigeria

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Key Requirements PROMPT example:

Option Agreement Land

"I need a Land Option Agreement for a 5-hectare plot in Lagos State, with a 12-month option period starting March 2025, where my development company will have the exclusive right to purchase the land for industrial development after completing environmental assessments."

Document background
A Land Option Agreement is a crucial document in Nigerian real estate and development transactions, providing a structured framework for potential land acquisition while managing risk for both parties. This agreement type is commonly used when a party needs to secure the possibility of purchasing land while conducting due diligence, obtaining planning permissions, or arranging financing. The Option Agreement Land document must comply with Nigerian federal and state land laws, particularly the Land Use Act 1978, and typically includes detailed provisions about the option period, purchase price, exercise mechanics, and completion requirements. It's particularly valuable in complex development projects where preliminary investigations or approvals are needed before committing to a full purchase, and where parties need to ensure compliance with local land registration requirements and traditional land rights considerations.
Suggested Sections

1. Parties: Identification of the option grantor (landowner) and option holder, including full legal names and addresses

2. Background: Context of the agreement, including brief description of the property and parties' intentions

3. Definitions: Key terms used throughout the agreement, including 'Option Period', 'Option Fee', 'Purchase Price', and 'Property'

4. Grant of Option: Terms of the option grant, including exclusivity and duration

5. Option Fee: Details of the option fee, payment terms, and whether it forms part of the purchase price

6. Exercise of Option: Process and requirements for exercising the option, including notice requirements

7. Purchase Price: Agreed purchase price for the property if option is exercised

8. Title and Capacity: Grantor's warranties regarding ownership and authority to sell

9. Property Condition: State of the property and any warranties regarding its condition

10. Completion: Process and requirements for completing the sale after option exercise

11. Termination: Circumstances under which the agreement can be terminated

12. Notices: How formal notices should be given between parties

13. Governing Law: Confirmation of Nigerian law as governing law and jurisdiction

14. General Provisions: Standard boilerplate clauses including entire agreement, variation, and severance

Optional Sections

1. Environmental Matters: Required if the property has known environmental issues or if environmental investigations are pending

2. Planning Permissions: Include if the option is conditional on obtaining specific planning permissions

3. Development Conditions: Required if the option is linked to specific development proposals

4. Land Use Restrictions: Include if there are specific restrictions on land use during the option period

5. Survey Rights: Include if the option holder needs rights to conduct surveys or investigations

6. Assignment Rights: Include if either party needs the right to assign the option

7. Traditional Rights: Required in areas where traditional land rights need to be addressed

8. Local Community Provisions: Include where local community interests need to be protected or addressed

Suggested Schedules

1. Property Description: Detailed description of the property including boundaries, coordinates, and survey plans

2. Title Documents: List of relevant title documents and certified copies

3. Option Notice Form: Prescribed form for exercising the option

4. Payment Schedule: If payment is to be made in installments or stages

5. Encumbrances: List of any existing encumbrances, easements, or rights affecting the property

6. Required Consents: List of necessary government or regulatory consents required

7. Land Use Specifications: Details of permitted use and development restrictions

8. Due Diligence Requirements: Checklist of required due diligence items and documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Teams

Legal

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Land Acquisition

Investment

Operations

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Risk Management

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Relevant Roles

Real Estate Director

Property Development Manager

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Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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