Real Estate Development Fee Agreement Template for England and Wales

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Key Requirements PROMPT example:

Real Estate Development Fee Agreement

"I need a Real Estate Development Fee Agreement for a mixed-use development project in Manchester, where we'll be paying our developer a base fee of £500,000 plus an additional success fee based on achieving specific sustainability targets by March 2025."

Document background
The Real Estate Development Fee Agreement is essential for structuring the commercial relationship between developers and property owners/investors in England and Wales. This document is typically used when a development project requires professional development services, establishing clear terms for compensation, scope of work, and delivery expectations. It addresses key aspects such as planning permissions, construction oversight, and project milestones while ensuring compliance with UK property laws and building regulations. The agreement provides certainty and protection for all parties involved in the development process.
Suggested Sections

1. Parties: Details of the developer and fee-paying entity

2. Background: Context of the development project and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of development services to be provided

5. Fee Structure: Development fees, payment terms, and calculation methods

6. Payment Terms: Timeline and mechanics of payments

7. Duration: Term of the agreement and key milestones

8. Obligations: Responsibilities of each party

9. Termination: Circumstances and process for ending the agreement

Optional Sections

1. Performance Metrics: Specific targets and KPIs - used for large-scale developments with measurable outcomes

2. Force Majeure: Provisions for unforeseen circumstances - recommended for long-term development projects

3. Step-in Rights: Rights to take over development - included when involving third-party funders

Suggested Schedules

1. Schedule 1: Property Details: Legal description of development site

2. Schedule 2: Services Specification: Detailed scope of development services

3. Schedule 3: Fee Calculation: Detailed fee structure and calculations

4. Schedule 4: Project Timeline: Key dates and milestones

5. Appendix A: Planning Permissions: Copies of relevant planning approvals

6. Appendix B: Development Plans: Architectural and development drawings

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
Industries

Law of Property Act 1925: Fundamental legislation governing property law principles and legal estates and interests in land in England and Wales

Housing and Planning Act 2016: Legislation covering development planning requirements and housing development regulations

Town and Country Planning Act 1990: Key legislation governing planning permission requirements and development control

Construction Act 1996: Housing Grants, Construction and Regeneration Act covering payment provisions and dispute resolution procedures

Building Regulations 2010: Regulatory framework setting construction standards and safety requirements for building works

CLC Regulations: Council for Licensed Conveyancers regulations covering professional requirements and client money protection

RICS Standards: Royal Institution of Chartered Surveyors professional standards governing conduct and valuation standards

VAT Legislation: Tax legislation governing VAT treatment of development services and related tax implications

Money Laundering Regulations 2017: Regulations covering due diligence requirements and reporting obligations for property transactions

Consumer Protection Laws: Legislative framework protecting consumer rights and ensuring fair trading practices

Companies Act 2006: Corporate legislation governing company capacity and authority to contract when parties are corporate entities

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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