This is an agreement between a developer and an owner of real estate for the development of property. The owner hires the developer to develop the property and obtain the necessary approvals and permits. The owner compensates the developer for their services as well as providing a developmental fee which covers the construction and labor costs. This agreement can be used by individuals or entities that want to develop a certain piece of property.
This is an agreement between a developer and an owner of real estate for the development of property. The owner hires the developer to develop the property and obtain the necessary approvals and permits. The owner compensates the developer for their services as well as providing a developmental fee which covers the construction and labor costs. This agreement can be used by individuals or entities that want to develop a certain piece of property. REAL ESTATE DEVELOPMENT AGREEMENT THIS REAL ESTATE DEVELOPMENT AGREEMENT (the "Agreement") made this _____ of _____________, 20____, between _____________, (the “Owner”) and _____________(the “developer”) NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the Owner and Developer hereby agree as follows: ARTICLE 1 1.00 CONTRACT 1.01 The Owner is the legal and/or beneficial owner of certain lands, known municipality as __________________________ (the "Property"), and as more fully described in the legal description contained in Schedule “A” attached hereto. 1.02 The Owner wants to retain the Developer to develop and obtain the necessary approvals and permits to develop the Property for the purposes of _______________________ (insert purpose of Developer) (the "Project") and related matters hereinafter described, upon and subject to the terms, provisions and conditions contained herein. ARTICLE 2 2.00 CONSIDERATION AND FINANCING 2.01 The Owner and the Developer hereby acknowledge and agree that consideration for the completion of the Project will be the sum of _________________ ($_______) Dollars (the “Project Consideration”). The Project Consideration will include, among other things, a Development Fee (the “Development Fee”) payable to the Developer in the sum of ________________ ($_________) Dollars, as more fully described herein. The Development Fee shall include the cost of all development personnel and overhead costs. The Project Consideration has been determined by the Owner and the Developer pursuant to the present scope of the Project and presently known facts, and is subject to adjustments based on any material changes or modifications to the scope of work to be performed by the Developer, whether any material changes occur, changes in statutes, ordinances or regulations or the application thereof subsequent to the date hereof that results in a required change or modification to the scope of the work, or as may hereinafter be agreed to in writing by the Owner and the Developer. 2.02 Payment of the Development Fee will be paid to the Developer by the Owner pursuant to the following provisions: © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 2 (i) _________ (__%) percent of the Development Fee, or ____________ ($_______) Dollars will be paid by the Owner to the Developer upon the Developer obtaining all necessary permits and approvals for the Project; (ii) _________ (__%) percent of the Development Fee, or ___________ ($_______) Dollars will be paid by the Owner to the Developer upon the commencement of the Project by the Developer; (iii) _________ (__%) percent of the Development Fee, being the final and full payment of the Development Fee, will be paid by the Owner to the Developer upon completion of the Project. 2.03 Payment of the Project Consideration will be paid to the Developer by the Owner pursuant to the following provisions: (i) _________ (___%) percent of the Project Consideration, being _______ ($_____) Dollars will be paid by the Owner to the Developer upon commencement of the Project; (ii) _________ (___%) percent of the Project Consideration, being _______ ($____) Dollars will be paid by the Owner to the Developer upon completion of the Project. or (i) ___________ ($______) Dollars will be paid to the Developer by the Owner, in equal consecutive monthly instalments on the ____ day of each and every month until the ____ day of _________, 20_____ or until the Project Consideration is paid in full by the Owner to the Developer. or (i) The Owner will pay to the Developer the Project Consideration in the amount of ___________________ ($______) Dollars upon completion of the Project in full satisfaction of the Project Consideration. 2.04 On or before the first business day of each month after commencement of the Project, the Developer will deliver to the Owner a statement for payment reflecting the percentage of the work performed up to the twenty-fifth (25th) day of the preceding month, or as close to that date as possible. 2.05 The Owner will review each statement for payment submitted by the Developer to the Owner, and the Developer shall submit to the Owner evidence of the percentage of the completion of the work as determined by the Developer. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 3 2.06 If the statement for payment and all supporting receipts are satisfactory to the Owner, then the Owner shall issue payment to the Developer on or before the ____ (___) day following the date on which the Developer submitted the statement for payment to the Owner. 2.07 If at any time during the term of this Agreement a lien is registered with respect to the Property, by anyone claiming amounts due from the Developer, the Developer shall have thirty (30) days after written notice of such lien to obtain a proper discharge of the claim or lien by payment or to post a bond discharging the lien in accordance with the (Construction Lien Act); provided that if a lien is registered with respect to work for which the Owner then owes the Developer but the Developer has not been paid by the Owner, the Developer shall not be obligated to pay or discharge the lien until the Developer has received full payment from the Owner for the work for which the lien was registered. Should the Developer fail to discharge or post a bond with respect to a lien for work for which the Developer has received payment from the Owner, the Owner at its sole discretion shall have the right to discharge the claim of lien and deduct any amounts owing to Developer. ARTICLE 3 (OPTIONAL: SHOULD A BUILDING OR OTHER STRUCTURE BE CONSTRUCTED) 3.00 DESCRIPTION OF BUILDING 3.01 The building to be constructed shall be an approximately _______________ (_____) square feet and approximately ______ (___) square feet of office building. The Owner and the Developer hereby acknowledge and agree that the Property will be landscaped by the Developer in accordance with any and all landscape plans approved by the Owner. 4.00 DESIGN AND PLANS 4.01 The building shall be constructed as depicted on the proposed site plan for the Project, and in accordance with the scope of work for the Project, and in accordance with any preliminary plans and specifications for the building. Any changes or amendments to the proposed site plan will first be approved by the Owner. The Owner hereby acknowledges that an architect (the “Architect”) has been chosen by the Owner for assistance with the Project, namely _____________. The Developer hereby agrees to work with the Architect to provide its architectural services to the Developer and The Owner pursuant to terms, conditions and provisions of this Agreement. Notwithstanding any of the foregoing, the Developer reserves the right to make reasonable changes or substitutions of equivalent products and materials for those required for the Project; however, such changes or amendments must be agreed to by the Owner, whose consent shall not unreasonably be withheld or delayed. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 4 4.02 Upon completion of the final site plan, the Developer will deliver the final site plan to the Owner and the Owner shall have _____ (___) business days following the date of delivery to the Owner to review and approve. If the Owner requests any amendments to the final site plan the Developer shall convey such required amendments to the Architect within _____ (__) business days. ARTICLE 5 5.00 AMENDMENTS TO PROJECT 5.01 Except as otherwise provided herein, all changes or revisions to the Project plan must be in writing and signed by both the Owner and the Developer to be effective. In the event of any such change or amendment, the Owner and the Developer hereby acknowledge that any such change or amendment will result in a change in the Developer's costs, whether for increases or decreases in Developer/subDeveloper/supplier charges or for the Developer's on-site personnel costs, or both. The Project Consideration shall be increased or decreased to reflect those changed costs. The changes of costs that may occur shall be added to or deducted from the Project Consideration and paid over the term of the contract through payments as provided for in Article 2.03 above. ARTICLE 6 6.00 LANDSCAPING 6.01 Subject to the laws of the applicable jurisdiction, and approval of the Owner, the Developer shall have the right, at any time during the Project work (or construction of the Building), to remove any trees, shrubs, grass or other natural vegetation as the Developer in its sole discretion deems reasonably necessary to permit the Project work (or construction of the Building) as part of the Project Consideration. The Developer shall sod or seed (as agreed to by the parties) and landscape the Property at the appropriate stage of construction, weather conditions permitting prior to commencement of physical site work. Any additional landscaping requested by the Owner shall be in writing to the Developer. ARTICLE 7 7.00 INSURANCE 7.01 The Developer will shall maintain insurance and such other insurance coverage as the Owner deems appropriate. Such insurance held by the Developer shall comply with the requirements of the Owner and the Owner's financial institution lender. The cost of all such insurance is included in the Project Consideration. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 5 ARTICLE 8 8.00 TITLE 8.01 The Owner will deliver to the Developer, evidence of title to the Property or a copy of a title policy evidencing the Owner’s title and interest to the Property. ARTICLE 9 9.00 GENERAL PROVISIONS 9.01 The Owner and the Developer hereby acknowledge and agree that expediency is an essential part of this Agreement in developing the Property and that if the Developer fails to complete its Project work in respect of the Property within the time specified and agreed upon, the Owner will be damaged thereby due to extra costs incurred as well as loss of potential revenue. 9.02 The Owner and the Developer shall, promptly do, execute, deliver or cause to be done, executed and delivered all further acts, documents and things in connection with this Agreement that the other party may require, for the purposes of giving effect to this Agreement. 9.03 The Owner and the Developer shall (and shall cause each of its officers, employees and agents) to hold in strictest confidence and not use in any manner whatsoever, other than as expressly contemplated by this Agreement, any confidential information of the other party or relating to the Project. This provision shall not apply to the disclosure of any confidential information where such disclosure is required by applicable law. 9.04 This Agreement is for the benefit of, and be binding on each of the Owner and the Developer, and their respective successors and permitted assigns. The Owner or Developer may not assign or transfer all or any part of their respective rights or obligations under this Agreement without the prior written consent of the other. 9.05 This Agreement (together with all other agreements or documents executed by the Owner and the Developer contemplated by this Agreement) constitutes the entire agreement between the Owner and the Developer pertaining to the subject matter of this Agreement and such other agreements and documents and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written including, without limitation, any confidentiality agreements which may have been entered into between the Owner and the Developer prior to the date hereof. There are no conditions, warranties, representations or other agreements between the Owner and the Developer in connection with the subject matter of this Agreement (whether oral or written, express or implied, statutory or otherwise) except as specifically set out in this Agreement or in such other agreements and documents attached to this agreement.. 9.06 Waiver of any default, breach or non-compliance under this Agreement is not effective unless in writing and signed by either the Owner or the Developer. No waiver shall be © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 6 inferred from or implied by any failure to act or delay in acting by the Owner or the Developer in respect of any default, breach or non-observance or by anything done or omitted to be done by either of the Owner or Developer. The waiver by either the Owner or Developer of any default, breach or non-compliance under this Agreement shall not operate as a waiver of that party's rights under this Agreement in respect of any continuing or subsequent default, breach or non- observance (whether of the same or any other nature). 9.07 Any provision of this Agreement which, as it may relate to the Owner or Developer, is prohibited or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such prohibition or unenforceability and shall be severed from the balance of this Agreement, all without affecting the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. 9.08 This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument. Counterparts may be executed either in original or faxed form and the parties adopt any signatures received by a receiving fax machine as original signatures of the parties; provided, however, that any party providing its signature in such manner shall promptly forward to the other party an original of the signed copy of this Agreement which was so faxed. 9.09 This Agreement shall be governed by and construed in accordance with the laws of the Province/State of ________________ and the laws of __________ (enter country) applicable in that Province/State and shall be treated, in all respects, as an ___________ contract. IN WITNESS WHEREOF the Owner and Developer have executed this Agreement. DATED at ___________, ________, this __day of ____________, 20___. (OWNER) Per: Name: Title: I have authority to bind the Company. (DEVELOPER) Per: Name: Title: I have authority to bind the Company. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 7
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