Establishing A Development Agreement

It is an accepted fact that land owners have various opportunities to get revenue out of their land. An available option to the land owner is to assign a 'developer on the land' for the construction of a commercial building.

If the land owner of a potentially profitable land does not have the requisite expertise regarding construction and related formalities, time and sufficient funds to initiate the plan, a development agreement ('the agreement') can be drawn up between a 'developer of the land' and the 'land owner'. Simultaneously, it benefits the 'developer on the land' who might have sufficient funds and expertise but does not have the land, especially at prime locations. Taking into consideration the various risks involved for each party, having a well-founded agreement in place is key.