Development Agreement Clauses

A Real Estate Development Agreement is an agreement between Land Owner and a construction company, Builder to develop the land for the residential or commercial purpose.
The following are some of the important clauses that need to be included in the Development Agreement:

1. Scope of Project
It lists the project's characteristics and what is anticipated from it. If a third party participates, their roles should be defined.

2. Deliverables
Here, what the owner has to offer to the developer and vice versa is listed in the agreement. For all deliverables, there is a time limit.

3. Termination
Lists out the situations that allow either party to terminate the contract before the completion of the project.

4. Ownership
States the ownership of the property or asset.

5. Indemnity Clause
Who pays for the lawsuit if a dispute goes to court.

6. Force Majeure
Developer should not be held liable for acts of God, invasion, natural calamity or anything else that does not control the developer, but prevents the project from being completed in a timely manner.