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Real Estate Development Agreement template
Real Estate Development Agreement sample


What is Real Estate Development Agreement?

Real Estate Development Agreement A Real Estate Development Agreement governs the development of real estate properties, specifying development terms, financing arrangements, and construction responsibilities.



Sample template:



REAL ESTATE DEVELOPMENT AGREEMENT


1. DEFINITIONS AND INTERPRETATION

1.1. Definitions


In this Agreement, unless the context otherwise requires, the following expressions have the following meanings:


"Agreement" means this Real Estate Development Agreement; "Closing Date" means the date mutually agreed upon by the parties for completion of the Project, or any extended date as agreed in writing between the parties; "Construction Documents" means the plans, drawings, specifications, and permits required for the construction of the Project in accordance with the Project Plans and Applicable Law; "Developer" means HarborView Estates, a company duly organized and existing under the laws of the United States; "Development Property" means the real property located at ____________________, as more particularly described on Exhibit A attached hereto; "Project" means the development and construction of the real estate properties on the Development Property in accordance with the Project Plans, the Construction Documents, and Applicable Law; "Project Plans" means the schematic design and development plans for the Project, which shall be consistent with the approved preliminary site plan;



2. DEVELOPMENT

2.1. Development of Project


The Developer shall be responsible for the design, development, construction, and completion of the Project in accordance with the Project Plans, the Construction Documents, and Applicable Law. The Developer shall use commercially reasonable efforts to complete the Project in a good and workmanlike manner, free from defects in materials and workmanship.



3. FINANCING';

3.1. Financing Arrangements


The Developer shall be responsible for securing all necessary financing for the Project, including, but not limited to, construction loans, permanent loans, and equity investments. The Developer shall provide proof of financing commitments to the other party upon written request.



4. DEVELOPMENT MILESTONES

4.1. Milestones


The Developer shall achieve the following milestones by the dates specified below:


(a) Commencement of construction: (insert date);


(b) Completion of site work and infrastructure: (insert date);


(c) Substantial completion of building construction: (insert date);


(d) Issuance of final Certificate of Occupancy: (insert date);


These milestones may be extended by written agreement of both parties.



5. WARRANTIES

5.1. Performance Guaranty


During the term of this Agreement, the Developer shall maintain a performance bond or letter of credit in favor of the other party to assure the faithful performance of its obligations under this Agreement. The amount of such bond or letter of credit shall be in a sum equal to the total estimated construction cost of the Project, as determined by the Developer's lender.



6. INDEMNIFICATION

6.1. Indemnification


The Developer shall indemnify, defend, and hold harmless the other party, its officers, directors, employees, and agents, from and against any and all third-party claims, losses, liabilities, damages, penalties, fines, costs, and expenses (including reasonable attorney's fees) arising out of or relating to the Developer's performance of this Agreement, except to the extent caused by the gross negligence or willful misconduct of the other party.



7. INSURANCE

7.1. Insurance Requirements


The Developer shall procure and maintain, at its sole expense, insurance coverage as required by Applicable Law and as reasonably necessary to protect the interests of the other party, including, but not limited to, commercial general liability, workers' compensation, builders' risk, and professional liability insurance. The Developer shall provide the other party with certificates of insurance evidencing such coverage upon request.



8. TERMINATION

8.1. Termination for Cause


Either party may terminate this Agreement upon written notice to the other party if the other party materially breaches any of its obligations under this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice thereof, or such longer period as may be reasonably necessary if the breach is not capable of being cured within thirty (30) days and the breaching party has taken steps to cure the breach promptly and is diligently pursuing the cure.



9. MISCELLANEOUS

9.1. Governing Law


This Agreement shall be governed by, and construed in accordance with, the laws of the United States and the state in which the Development Property is located, without giving effect to any choice-of-law rules that may require the application of the laws of another jurisdiction.


9.2. Entire Agreement


This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and understandings, whether oral or written.


9.3. Amendment


This Agreement may be amended only by a written instrument signed by both parties.


9.4. Binding Effect


This Agreement shall be binding upon, and inure to the benefit of, the parties and their respective successors and permitted assigns.


9.5. Counterparts


This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.



IN WITNESS WHEREOF, the parties have executed this Real Estate Development Agreement as of the date first above written.

HarborView Estates, LLC

By: __________________________
Name: ________________________
Title: _________________________

[Other Party]

By: __________________________
Name: ________________________
Title: _________________________

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Sections of a Real Estate Development Agreement


In this Real Estate Development Agreement, you will see the following sections:

  1. Definitions and Interpretation
  2. Development
  3. Financing
  4. Development Milestones
  5. Warranties
  6. Indemnification
  7. Insurance
  8. Termination
  9. Miscellaneous


Going indepth - Analysis of each section:

  1. Definitions and Interpretation: This section explains the meaning of specific terms used throughout the agreement, such as "Agreement," "Developer," "Project," and "Development Property." Think of it as a glossary to help you understand the rest of the document.

  2. Development: This part outlines the Developer's responsibilities for designing, developing, constructing, and completing the Project. It's like a blueprint for what the Developer needs to do to fulfill their part of the agreement.

  3. Financing: Here, the Developer is responsible for securing all necessary financing for the Project, including loans and investments. It's like the Developer is the one in charge of finding the money to make the Project happen.

  4. Development Milestones: This section lists specific milestones the Developer must achieve by certain dates, such as starting construction or completing site work. It's like a timeline to ensure the Project stays on track and gets completed on time.

  5. Warranties: The Developer must maintain a performance bond or letter of credit to guarantee they'll fulfill their obligations under the agreement. It's like a safety net to protect the other party if the Developer doesn't hold up their end of the bargain.

  6. Indemnification: This part states that the Developer will protect and compensate the other party for any losses or damages caused by the Developer's actions, except in cases of gross negligence or willful misconduct. It's like an insurance policy to cover any potential problems caused by the Developer.

  7. Insurance: The Developer must obtain and maintain various types of insurance coverage, such as general liability and workers' compensation. This section ensures that both parties are protected from potential risks and liabilities during the Project.

  8. Termination: This section outlines the circumstances under which either party can end the agreement, such as if one party breaches the agreement and doesn't fix the issue within a certain time frame. It's like an escape clause if things go wrong.

  9. Miscellaneous: This final section covers various legal aspects of the agreement, such as governing law, amendments, and binding effect. It's like the fine print that helps tie everything together and make the agreement legally sound.

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