Real Estate Development Agreement Law and Legal Definition

A Real Estate Development Agreement (“Agreement”) is an agreement between an individual and a construction company, city or builder to develop a parcel of land for the individual’s personal or commercial use. The Real Estate Development Agreement involves the submission of a Development Plan by the Developer to the Owner of the property. The development plan sketches out the project and lays down the ground rules of the build, such as the time frame, property limits etc. Once the owner approves the Plan, the Developer may start work on the project. The Agreement contains details regarding the responsibilities of the Developer and Owner, provisions regarding subcontracting, details of the work to be carried out in different phases, etc. Further, the Agreement stipulates the duties pertaining to the keeping of books and records, insurance, cash flow projections, etc. The developer has to develop a detailed plan for Owner's review and approval. The Plan should be made in accordance with the specific requirements of the owner regarding the development of the property. The Owner can review the plan within a stipulated period and return to the Developer for any modifications. Developer shall create, maintain and deliver the accounts, records and reports pertaining to the Agreement. Prior to commencing work, the developer has to discuss with the Owner about matters relating to land use entitlements affecting the Property. Developer may delegate or subcontract portions of its obligations to architects, engineers, expediters, market researchers and consultants.