Real Estate Development Agreement

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Real Estate Development Agreement Powered By Docstoc
					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:



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         (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.




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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.




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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.




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                                                       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



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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.


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DOCUMENT INFO
Description: 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 document is also part of a package Purchase of Real Estate Starter Kit 15 Documents Included