Predevelopment Agreement Template for England and Wales

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Key Requirements PROMPT example:

Predevelopment Agreement

"I need a Predevelopment Agreement for a mixed-use development project in Manchester, where we're working with multiple landowners and need to outline cost-sharing arrangements for planning applications to be submitted by March 2025."

Document background
The Predevelopment Agreement serves as a crucial preliminary document in property development projects under English and Welsh law. It is typically used when parties need to undertake significant preliminary work, such as planning applications and site investigations, before committing to a full development project. The agreement outlines how these preliminary activities will be managed, funded, and risk-allocated between the parties. It often precedes more substantial agreements like option agreements or development agreements, and helps establish clear parameters for the initial phase of development work while protecting all parties' interests during this crucial stage.
Suggested Sections

1. Parties: Details of the developer, landowner, and any other key parties to the agreement

2. Background: Context of the development proposal, relationship between parties, and key objectives

3. Definitions: Key terms and definitions used throughout the agreement

4. Development Proposal: Detailed outline of the proposed development and scope of predevelopment activities

5. Due Diligence Obligations: Requirements for site investigations, surveys, and other preliminary assessments

6. Planning Obligations: Requirements regarding planning applications, permissions, and related obligations

7. Cost Arrangements: Allocation of predevelopment costs, payment terms, and financial responsibilities

8. Termination Provisions: Circumstances and process for termination of the agreement

Optional Sections

1. Exclusivity: Terms of exclusive dealing period between the parties during the predevelopment phase

2. Option Agreement Provisions: Terms and conditions for any subsequent option agreement to be entered into

3. Overage Provisions: Terms for additional payments based on development value and future profits

Suggested Schedules

1. Property Plan: Plans and drawings showing the development site and relevant boundaries

2. Development Programme: Detailed timeline and milestones for predevelopment activities

3. Due Diligence Requirements: Comprehensive list of required surveys, investigations, and assessments

4. Cost Schedule: Detailed breakdown of anticipated predevelopment costs and payment schedule

5. Form of Option Agreement: Draft template of proposed option agreement if applicable to the transaction

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

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Town and Country Planning Act 1990: Primary legislation governing planning permission requirements and development control provisions in England and Wales

Planning and Compulsory Purchase Act 2004: Legislation covering local development frameworks and sustainable development obligations

Housing and Planning Act 2016: Key legislation addressing planning obligations and development consent provisions

Law of Property (Miscellaneous Provisions) Act 1989: Contract law requirements for land-related agreements, including the need for written contracts

Building Regulations 2010: Regulatory framework setting standards for design, construction and alterations to buildings

Environmental Protection Act 1990: Legislation governing environmental protection and pollution control in development projects

Party Wall etc. Act 1996: Legislation governing works affecting party walls, boundaries and excavations near neighboring buildings

Community Infrastructure Levy Regulations 2010: Regulations governing development charges for local infrastructure funding

Section 106 of Town and Country Planning Act: Planning obligations and agreements between developers and local authorities for infrastructure and services

Rights of Light Legislation: Common law and statutory provisions protecting neighboring properties' access to light

Land Law: General principles of property law including easements, covenants, and land registration requirements

Environmental Law: Comprehensive body of regulations covering environmental impact assessments and protection measures

Health and Safety Regulations: Workplace safety requirements and obligations during pre-development and construction phases

Construction Law: Legal framework governing construction contracts, disputes, and project delivery methods

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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