P R O M O T I O N A G R E E M E N T S
A 'promoter' collaborates with the landowner in achieving planning permission for a given site, which is then sold and profits split in favour of the landowner.
In return for the landowner fronting the land for development, the promoter will cover the costs associated in gaining approval and marketing/selling the site. The promotor pays these costs at his own risk as planning may be unachievable.
The promoter is reimbursed from the sale of the site plus takes a small percentage of the increase in value, not the overall site value, in return for fronting costs and risk.
This agreement works well for both the landowner and the promoter as they share a common goal in trying to achieve the highest price possible for the site.