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Provide a template for a Real Estate Development Agreement

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Introduction

A Real Estate Development Agreement is a legally binding contract between a property owner and a developer. This agreement outlines the terms and conditions under which the development of a property will take place. In Kenya, such agreements must comply with various laws and regulations, including the Constitution of Kenya, the Land Act, the Land Registration Act, and the Environmental Management and Coordination Act, among others.

Parties to the Agreement
Recitals
Definitions
Scope of Work
Development Plan
Obligations of the Developer
Obligations of the Property Owner
Financial Arrangements
Permits and Approvals
Environmental Compliance
Insurance
Warranties and Representations
Force Majeure
Dispute Resolution
Termination
Miscellaneous Provisions
Signatures

1. Parties to the Agreement

This section identifies the parties involved in the agreement.

Property Owner: [Name, Address, Identification Number]
Developer: [Name, Address, Identification Number]

2. Recitals

This section provides the background and purpose of the agreement.

Whereas the Property Owner owns the property located at [Property Address].
Whereas the Developer is engaged in the business of real estate development.
Whereas the Property Owner desires to develop the property and the Developer agrees to undertake the development.

3. Definitions

This section defines key terms used in the agreement.

"Agreement" means this Real Estate Development Agreement.
"Property" means the real estate located at [Property Address].
"Development Plan" means the plan for the development of the Property as described in Schedule A.

4. Scope of Work

This section outlines the scope of the development work to be undertaken by the Developer.

Design and Planning: Preparation of architectural and engineering plans.
Construction: Execution of construction work as per the Development Plan.
Completion: Finalization of all development activities and handover of the completed project.

5. Development Plan

This section describes the development plan in detail.

Description: Detailed description of the development project.
Timeline: Project timeline with key milestones.
Specifications: Technical specifications and standards to be adhered to.

6. Obligations of the Developer

This section outlines the responsibilities of the Developer.

Compliance: Adherence to all applicable laws and regulations.
Quality: Ensuring high-quality construction and materials.
Reporting: Regular progress reports to the Property Owner.

7. Obligations of the Property Owner

This section outlines the responsibilities of the Property Owner.

Access: Providing access to the property for development activities.
Payments: Timely payments as per the financial arrangements.
Approvals: Obtaining necessary approvals and permits.

8. Financial Arrangements

This section details the financial aspects of the agreement.

Development Fee: The fee payable to the Developer.
Payment Schedule: Schedule of payments to be made by the Property Owner.
Cost Overruns: Handling of any cost overruns.

9. Permits and Approvals

This section outlines the permits and approvals required for the development.

Government Approvals: Necessary government permits and approvals.
Third-Party Approvals: Any other required third-party approvals.

10. Environmental Compliance

This section ensures compliance with environmental laws and regulations.

Environmental Impact Assessment: Conducting an EIA as per the Environmental Management and Coordination Act.
Mitigation Measures: Implementation of mitigation measures as recommended in the EIA report.

11. Insurance

This section outlines the insurance requirements for the development.

Coverage: Types of insurance coverage required.
Duration: Duration of the insurance coverage.
Beneficiaries: Parties to be named as beneficiaries.

12. Warranties and Representations

This section provides the warranties and representations made by both parties.

Developer's Warranties: Warranties regarding the quality of work and compliance with laws.
Property Owner's Warranties: Warranties regarding the ownership of the property and authority to enter into the agreement.

13. Force Majeure

This section addresses the impact of unforeseen events on the agreement.

Definition: Definition of force majeure events.
Consequences: Consequences of force majeure events on the obligations of the parties.

14. Dispute Resolution

This section outlines the process for resolving disputes.

Negotiation: Initial negotiation between the parties.
Mediation: Mediation by a neutral third party.
Arbitration: Binding arbitration as per the Arbitration Act.

15. Termination

This section outlines the conditions under which the agreement can be terminated.

By Mutual Consent: Termination by mutual consent of both parties.
For Cause: Termination for cause, including breach of contract.
Notice Period: Notice period required for termination.

16. Miscellaneous Provisions

This section includes various other provisions.

Governing Law: The agreement shall be governed by the laws of Kenya.
Amendments: Any amendments to the agreement must be in writing and signed by both parties.
Entire Agreement: This agreement constitutes the entire agreement between the parties.

17. Signatures

This section includes the signatures of the parties.

Property Owner: [Signature, Name, Date]
Developer: [Signature, Name, Date]

Conclusion

A Real Estate Development Agreement is a crucial document that outlines the terms and conditions for the development of a property. It is essential to ensure that the agreement complies with all applicable laws and regulations in Kenya. By clearly defining the roles and responsibilities of both parties, the agreement helps to prevent disputes and ensures the successful completion of the development project.