A Promotion Agreement is a legal contract between a landowner and a land promoter (such as Mac Mic Strategic Land) where the promoter helps secure planning permission for the land to maximize its value before selling it.
Key Features of a Promotion Agreement:
Planning Permission:
The promoter works to obtain planning consent, handling applications, negotiations, and appeals.No Upfront Cost for Landowner:
The promoter typically covers all costs related to planning applications, expert reports, and legal fees.Profit-Sharing Upon Sale:
Once planning permission is secured, the land is marketed and sold. The proceeds are then split between the landowner and promoter, with the promoter recovering its costs first.Landowner Retains Control:
Unlike an Option Agreement (where a developer has the right to buy at a pre-agreed price), a Promotion Agreement ensures the land is sold on the open market to achieve the best possible price.Time-Limited:
The agreement usually has a set duration, ensuring the landowner isn’t locked into an indefinite arrangement.
Pros & Cons for Landowners
✅ Pros:
No upfront financial risk.
Maximizes land value by obtaining planning consent.
Encourages the promoter to achieve the highest possible sale price.
❌ Cons:
The process can take years, with no guaranteed success.
The promoter takes a share of the profits.
If planning permission fails, the land remains undeveloped.
A Promotion Agreement is often a good option for landowners who lack the expertise or resources to navigate the complex planning system themselves.
James Thornton
Senior Writer
James Thornton is a Surrey-based writer and commentator specialising in housing developments, urban planning, and community impact. With a background in journalism and a keen interest in the evolving landscape of Surrey’s towns and villages, James has spent over a decade researching and reporting on planning policies, local authority decisions, and the balance between development and heritage conservation.
