Real Estate Development Agreement

A real estate development agreement is one of the most complicated of all agreements that take place between 2 or more entities. Such agreements can take place between you and a construction company; a city and a commercial builder or a retail business entity and a city. Real estate development agreement help in facilitating deals related to real estate property.

Sections of a real estate development agreement

Definitions

If the agreement deals with residential property, the agreement will have 2 or 3 definitions. Definition of terms is usually included in the first section of the agreement. However, if the agreement documents a deal that involves commercial real estate property, there may be more definitions.

Development plan section

Sketches related to the real estate project are included in the section containing the Development Plan. Time frame, basic construction rules, property limits also find a place in this section.

Improvement section

The improvement section of the real estate development agreement contains information related to the various developments that will be taken care of in the project. Several minute details are taken into account and as such this section usually becomes quite lengthy.

Witnessed section

In this section of the real estate development agreement, the steps that are to be followed in order to get approval from the city are mentioned here. The city investigates to find out whether the plot in question is suitable for the development project that the real estate builder is intending to carry out. The real estate builder submits the project development plan for approval.

Final section

Parking rules as well as landscaping rules are included in the final section of the real estate development agreement. The real estate builder is expected to complete the project within a stipulated time period. The project’s deadline is also mentioned in the real estate development agreement.