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Reference is often made to ‘put’ option agreements and ‘call’ option agreements. A call option agreement is one where the buyer (grantee) can call upon the seller (grantor) to sell a property (or part of it) to the grantee. A Put option is one in which the landowner can call upon the grantee to purchaser the property, see Practice Note: Options to purchase property—Scotland.

When an option over land is granted, the grantee has a contractual right to exercise the powers conferred to them by the option agreement. These powers most commonly involve the right to purchase the land:

1. •

   at a particular point in time, or

1. •

   within a certain time-frame

at

1. •

   a price, or

1. •

   a pricing strategy (such as the Market Value of the land at the time of purchase)

determined at the time the option was agreed.

Grantees often pay a substantial fee for the option itself, particularly if the land has the potential