Strategic Land – Consultation on Contractual Control on Land

The consultation on contractual control on land is now open and is set to close on 20 March 2024.

For the purpose of the consultation, contractual control agreements are contracts which provide a third party with control over land and include a number of strategic land deals such as Option Agreements and Promotion Agreements. It also includes conditional contracts and pre-emption agreements. 

Currently there is no legal requirement to record data from contractual control agreements. The Government is looking to make information accessible by creating a database comprising details of contractual control agreements. This will be achieved by requiring the relevant data to be collected within 60 days of the agreement being entered into. According to the consultation, contractual control agreements intended to facilitate future development will require disclosure but interestingly this requirement to disclose will only apply to registered land. 

There will be penalties for failure to comply which are expected to include up to six months imprisonment or a £5,000 fine and up to two years imprisonment and an unlimited fine for knowingly or recklessly providing false information.

As currently drafted the disclosure requirements will apply retrospectively. 

The consultation (Contractual controls on land: consultation) is seeking views on these proposals from individuals, organisations and businesses.

For more information please contact Real Estate and Projects Partner, Katie Fung or any other member of the Real Estate & Projects team.