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 Dev