Long Stop Date Option Agreement

If the conditions of the previous one are not met (or, if applicable, are not waived) on the date on which no more than four (4) weeks from the date of the subscription contract (or the later date the parties can agree) (the “long-stop” date), the subscription contract expires and has no additional effect, and no party is liable to the other with respect to the reference contract. The deadline ending with the long stop date and the repayment date of the last of the twelve (12) payments is referred to as the “repayment period.” The Slovenian government is stepping up measures every day and limiting the work of public institutions and businesses to combat the coronavirus epidemic. Measures such as the suspension of procedural deadlines are also introduced in administrative areas. Public authorities continue to carry out their missions, but due to their limited capacity, they are no longer required to expect tacit refusals/authorizations for bids if they do not meet the deadlines of the procedure. This also has an impact on the functioning of the Slovenian Competition Authority and other regulatory authorities that are empowered to grant the authorisation normally required to conclude R and; D. Therefore, it is likely that the originally agreed timeframe between the parties for a successful conclusion of the transaction will have to be extended. In light of the current situation, we recommend that the parties extend the above time frame to reduce the likelihood that the measures necessary to conclude the transaction will not be implemented or implemented in time. If one or both parties no longer wish to complete, this is another issue that will be addressed in a later article. In addition to the benefits for the owners, there are also benefits for landowners, which makes option agreements an attractive choice. A landowner may request an option amount to be paid on the day the option contract is exchanged. The amount of the option is generally retained by the landowner if the developer does not exercise the option and, furthermore, when a developer asks for the building permit and decides not to continue, the landowner obtains the building permit at no cost.

It can also have a positive impact on the value of the country. The buyer`s interest in an option contract can also be registered against the property of the land concerned in order to offer the developer a level of protection (since third parties are informed of your interest). (2) How long is the option or contract? After the exchange, the buyer is usually a restriction under the landowner; Be aware that developers are simply trying to protect sites in order to prevent and exclude competitors. The longer the time allowed, the more time a buyer has to limit the owners` ability to manage the land freely. Long down dates must be agreed from the outset. Call options are often used by developers to secure a right to purchase land when the building permit is obtained. If you choose an option, the developer has time to apply for development and follow up before you have to commit to paying for the land.