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Development Lease Agreement

Development Lease Agreement Template for Australia

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Key Requirements PROMPT example:

Development Lease Agreement

"I need a Development Lease Agreement for a mixed-use retail and residential project in Brisbane, with construction to commence in March 2025, including specific provisions for sustainable building practices and staged completion over 36 months."

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Document background
The Development Lease Agreement is a specialized legal instrument used in Australian property development when a landowner grants both occupancy rights and development permissions to a developer-tenant. This document is particularly relevant for projects where the developer will make significant improvements or construct new buildings on leased land. The agreement must navigate complex Australian federal and state regulatory requirements, including planning laws, construction codes, and environmental regulations. A Development Lease Agreement typically includes detailed provisions for development standards, timelines, and completion requirements, while also addressing traditional lease elements such as rent, maintenance, and property management. It's commonly used for commercial, retail, and mixed-use developments where the developer requires secure tenure while undertaking significant construction or improvement works.
Suggested Sections

1. Parties: Identification of the lessor/landlord and lessee/developer, including full legal entities and ABN details

2. Background: Context of the development lease, property details, and purpose of the agreement

3. Definitions and Interpretation: Defined terms used throughout the agreement and rules of interpretation

4. Grant of Lease: Terms of the lease grant, including term, purpose, and permitted use

5. Development Obligations: Core development requirements, specifications, and standards to be met

6. Development Timeline: Key milestones, completion dates, and development stages

7. Rent and Other Payments: Rent structure, development contributions, and other financial obligations

8. Security and Performance Guarantees: Required bonds, bank guarantees, or other security for development obligations

9. Approvals and Compliance: Required permits, licenses, and compliance with laws and regulations

10. Insurance and Indemnities: Required insurance coverage and indemnification provisions

11. Default and Termination: Events of default, remedies, and termination rights

12. Assignment and Subletting: Rights and restrictions regarding transfer of lease or development rights

13. Dispute Resolution: Process for resolving disputes related to lease or development matters

14. General Provisions: Standard boilerplate clauses including notices, governing law, etc.

Optional Sections

1. Pre-development Conditions: Conditions that must be satisfied before development can commence, used when specific prerequisites exist

2. Environmental Requirements: Specific environmental obligations and requirements, included when the development has significant environmental impacts

3. Heritage Protection: Provisions for protecting heritage elements, included when property has heritage significance

4. Marketing Rights: Rights and obligations regarding marketing of the development, included for commercial developments

5. Staging and Subdivision: Provisions for staged development or subdivision, included for larger scale developments

6. Future Development Rights: Rights for future development or expansion, included when future development potential exists

7. Community Consultation: Requirements for community engagement, included for developments with significant community impact

8. Indigenous Land Rights: Provisions relating to indigenous land rights and cultural heritage, included when relevant to the location

Suggested Schedules

1. Schedule 1 - Property Description: Detailed description of the land, including title details and plans

2. Schedule 2 - Development Plans: Approved development plans and specifications

3. Schedule 3 - Development Program: Detailed timeline and staging of development works

4. Schedule 4 - Rent and Payment Schedule: Detailed breakdown of rent, development contributions, and payment terms

5. Schedule 5 - Required Approvals: List of required permits, licenses, and authorizations

6. Schedule 6 - Technical Specifications: Detailed technical requirements for the development

7. Schedule 7 - Performance Criteria: Specific criteria for measuring development completion and compliance

8. Schedule 8 - Form of Security: Required format for bank guarantees or other security

9. Appendix A - Site Investigation Reports: Environmental, geotechnical, and other site investigation reports

10. Appendix B - Construction Management Plan: Detailed plan for managing construction activities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreed Development
Approval Date
Approvals
Authority
Base Rent
Building
Building Code of Australia
Building Works
Business Day
Certificate of Occupancy
Commencement Date
Completion Date
Construction Period
Contamination
Default Event
Development Application
Development Approval
Development Costs
Development Period
Development Plans
Development Program
Development Site
Development Specifications
Environmental Law
Essential Services
Expiry Date
Force Majeure Event
GST
Heritage Items
Improvements
Land
Lease Year
Lessor's Fixtures
Local Authority
Major Works
Milestone Dates
Occupancy Requirements
Outgoings
Permitted Use
Planning Laws
Practical Completion
Premises
Project Manager
Related Entity
Rent
Required Insurance
Security Amount
Security of Payment Act
Services
Stage
Subdivision
Substantial Breach
Term
Works
Clauses
Interpretation
Grant of Lease
Term
Development Rights
Development Obligations
Construction Requirements
Development Program
Planning and Approvals
Payment Obligations
Rent
Security
Insurance
Site Access
Environmental Compliance
Health and Safety
Quality Assurance
Warranties
Property Maintenance
Utilities and Services
Assignment and Subletting
Changes in Control
Default and Termination
Force Majeure
Dispute Resolution
Indemnification
Risk Allocation
Confidentiality
Notices
GST
Governing Law
Sustainable Development
Heritage Protection
Native Title
Subdivision Rights
Marketing Rights
Compliance with Laws
Reporting Requirements
Performance Guarantees
Completion Requirements
Variations
Extension Rights
Relevant Industries

Real Estate

Construction

Property Development

Commercial Property

Residential Property

Infrastructure

Retail

Industrial

Urban Planning

Mixed-Use Development

Relevant Teams

Legal

Property Development

Construction

Planning and Design

Property Management

Finance

Risk Management

Environmental Compliance

Project Management

Asset Management

Relevant Roles

Property Developer

Real Estate Lawyer

Development Manager

Project Manager

Construction Manager

Planning Consultant

Property Manager

Facilities Manager

Environmental Consultant

Architect

Urban Planner

Chief Financial Officer

Development Director

Legal Counsel

Asset Manager

Investment Manager

Industries
Real Property Act 1900: Fundamental legislation governing real property transactions and interests in land, including leasehold interests and registration requirements
Environmental Planning and Assessment Act 1979: Regulates development approvals, planning requirements, and environmental impact assessments for development projects
Building and Construction Industry Security of Payment Act 1999: Governs payment provisions and disputes in construction contracts, which may be relevant for development obligations
Retail Leases Act (State-specific): If the development includes retail premises, this Act governs specific requirements for retail leases
National Construction Code: Sets technical provisions for building work and building standards that must be met in development projects
Work Health and Safety Act 2011: Establishes health and safety obligations during construction and development activities
Environmental Protection and Biodiversity Conservation Act 1999: Federal legislation governing environmental impacts and protection requirements for development projects
Local Government Act (State-specific): Governs local council requirements, permits, and approvals needed for development projects
Native Title Act 1993: Must be considered if the development could affect indigenous land rights
Conveyancing Act 1919: Governs property transactions and legal requirements for property agreements including leases
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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