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Real Estate Development Agreement Template
REAL ESTATE DEVELOPMENT AGREEMENT
This Real Estate Development Agreement ("Agreement") is made and entered into as of [Date], by and between:
PARTIES:
Developer:
Name: [Developer's Full Name]
Address: [Developer's Address]
Contact Information: [Developer's Contact Information]
Landowner:
Name: [Landowner's Full Name]
Address: [Landowner's Address]
Contact Information: [Landowner's Contact Information]
RECITALS:
WHEREAS, the Developer is engaged in the business of real estate development and has the expertise, resources, and experience to develop the property described herein;
WHEREAS, the Landowner is the owner of certain real property located at [Property Address], legally described as [Legal Description of Property] (the "Property");
WHEREAS, the Landowner desires to develop the Property and has agreed to engage the Developer to undertake such development on the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:
1. DEFINITIONS
1.1 "Agreement" means this Real Estate Development Agreement, including all exhibits and schedules attached hereto.
1.2 "Development Plan" means the plan for the development of the Property, including all architectural, engineering, and construction plans and specifications, as approved by the Landowner and Developer.
1.3 "Project" means the development of the Property in accordance with the Development Plan.
1.4 "Completion Date" means the date by which the Project is to be substantially completed, as specified in the Development Plan.
2. SCOPE OF WORK
2.1 Development Services: The Developer agrees to provide all services necessary to develop the Property in accordance with the Development Plan, including but not limited to:
Site preparation
Construction of buildings and infrastructure
Landscaping
Obtaining all necessary permits and approvals
2.2 Changes to Scope: Any changes to the scope of work must be agreed upon in writing by both parties.
3. DEVELOPMENT PLAN
3.1 Approval: The Development Plan shall be subject to the approval of both the Landowner and the Developer. Any amendments to the Development Plan must be approved in writing by both parties.
3.2 Compliance: The Developer shall ensure that the Project complies with all applicable laws, regulations, and building codes.
4. FINANCIAL ARRANGEMENTS
4.1 Development Fee: The Landowner agrees to pay the Developer a development fee of [Amount] for the services provided under this Agreement. The fee shall be payable in installments as follows:
[Percentage]% upon execution of this Agreement
[Percentage]% upon completion of [Milestone]
[Percentage]% upon completion of [Milestone]
[Percentage]% upon the Completion Date
4.2 Cost Overruns: Any cost overruns shall be the responsibility of [Party Responsible for Cost Overruns], unless otherwise agreed in writing.
5. TERM AND TERMINATION
5.1 Term: This Agreement shall commence on the date first written above and shall continue until the Completion Date, unless terminated earlier in accordance with this Agreement.
5.2 Termination for Cause: Either party may terminate this Agreement for cause if the other party breaches any material term of this Agreement and fails to cure such breach within [Number] days after receiving written notice of the breach.
5.3 Termination for Convenience: The Landowner may terminate this Agreement for convenience upon [Number] days' written notice to the Developer. In the event of such termination, the Landowner shall pay the Developer for all work performed up to the date of termination.
6. REPRESENTATIONS AND WARRANTIES
6.1 Developer's Representations: The Developer represents and warrants that:
It has the necessary expertise, resources, and experience to perform the services required under this Agreement.
It will perform the services in a professional and workmanlike manner.
6.2 Landowner's Representations: The Landowner represents and warrants that:
It is the legal owner of the Property and has the authority to enter into this Agreement.
The Property is free from any liens or encumbrances that would interfere with the development of the Project.
7. INDEMNIFICATION
7.1 Developer's Indemnification: The Developer agrees to indemnify, defend, and hold harmless the Landowner from and against any and all claims, liabilities, damages, and expenses arising out of or in connection with the Developer's performance of its obligations under this Agreement.
7.2 Landowner's Indemnification: The Landowner agrees to indemnify, defend, and hold harmless the Developer from and against any and all claims, liabilities, damages, and expenses arising out of or in connection with the Landowner's ownership of the Property.
8. INSURANCE
8.1 Developer's Insurance: The Developer shall maintain, at its own expense, insurance coverage in amounts and types reasonably acceptable to the Landowner, including but not limited to:
General liability insurance
Workers' compensation insurance
Professional liability insurance
8.2 Landowner's Insurance: The Landowner shall maintain, at its own expense, property insurance covering the Property and the Project.
9. DISPUTE RESOLUTION
9.1 Negotiation: The parties agree to first attempt to resolve any disputes arising under this Agreement through good faith negotiations.
9.2 Mediation: If the parties are unable to resolve the dispute through negotiation, they agree to submit the dispute to mediation before a mutually agreed-upon mediator.
9.3 Arbitration: If the dispute is not resolved through mediation, it shall be resolved by binding arbitration in accordance with the rules of the [Arbitration Association], and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
10. MISCELLANEOUS
10.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the Republic of Kenya.
10.2 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof.
10.3 Amendments: This Agreement may be amended only by a written instrument executed by both parties.
10.4 Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
10.5 Notices: Any notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by certified mail, return receipt requested, or sent by a nationally recognized overnight courier service, to the addresses set forth above.
10.6 Counterparts: This Agreement may be executed in 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 hereto have executed this Real Estate Development Agreement as of the date first written above.
DEVELOPER:
[Developer's Full Name]
[Title]
[Company Name]
LANDOWNER:
[Landowner's Full Name]
[Title]
[Company Name]
Conclusion
This Real Estate Development Agreement template provides a comprehensive framework for the development of real estate properties in Kenya. It outlines the roles and responsibilities of both the developer and the landowner, ensuring that all aspects of the development process are clearly defined and agreed upon. By using this template, parties can ensure that their real estate development projects are conducted in a professional and legally compliant manner.
TLDR
A detailed Real Estate Development Agreement template for Kenya, covering scope of work, financial arrangements, term and termination, representations and warranties, indemnification, insurance, dispute resolution, and miscellaneous provisions.
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Answered by mwakili.com