Development Agreement Template for England and Wales

A Development Agreement sets out the terms between a property owner and a developer for transforming land or buildings. It covers essential details like construction timelines, planning permissions, and who handles specific responsibilities during the project.

These agreements play a vital role in English property law, especially for complex builds and regeneration schemes. They protect both parties by clearly defining payment structures, quality standards, and what happens if things go wrong. Local authorities often use them to ensure developers deliver community benefits like affordable housing or infrastructure improvements as part of major developments.

A Development Agreement becomes essential when undertaking significant property projects, particularly those involving multiple phases or complex planning requirements. Property owners need one before allowing developers to start work on their land, especially for major residential developments, commercial builds, or mixed-use schemes.

It's particularly important when dealing with local authorities in England and Wales, who require formal agreements to secure planning obligations and community benefits. The agreement proves invaluable for managing risk in situations involving substantial investment, multiple stakeholders, or where the development timeline stretches over several years.

• Site Development Agreement: For physical property and land development projects, covering construction phases, planning permissions, and infrastructure requirements
• Software Development Outsourcing Agreement: Used when outsourcing software projects to external developers, with detailed IP rights and delivery milestones
• App Development Contract: Specifically tailored for mobile application development, including app store requirements and user interface specifications
• Web Developer Contract: Focused on website development projects, covering hosting, maintenance, and content management systems

• Property Owners/Landowners: Control the land or buildings being developed and set key requirements for the development
• Property Developers: Take on the responsibility for executing the development project and meeting agreed specifications
• Local Planning Authorities: Review, approve, and enforce planning conditions attached to Development Agreements
• Solicitors: Draft and negotiate terms, ensuring compliance with planning law and protecting client interests
• Financial Institutions: Provide funding and require Development Agreements as security for development finance
• Architects/Surveyors: Contribute technical specifications and ensure compliance with design requirements

• Project Scope: Define exact development specifications, timelines, and phases of work
• Planning Status: Gather all existing permissions, required applications, and local authority requirements
• Party Details: Collect full legal names, registered addresses, and authority to sign for all involved parties
• Financial Terms: Document payment structures, development costs, and funding arrangements
• Site Information: Compile property title details, site surveys, and existing restrictions
• Risk Assessment: Identify potential delays, construction risks, and mitigation strategies
• Completion Criteria: Specify exact standards and conditions for practical completion

• Parties and Properties: Full legal names, addresses, and detailed property descriptions with title numbers
• Development Obligations: Specific works, standards, and timelines for completion
• Planning Conditions: Required permissions, approvals, and compliance with local authority requirements
• Financial Terms: Payment schedules, development costs, and funding arrangements
• Warranties and Indemnities: Quality guarantees and risk allocation between parties
• Termination Rights: Circumstances for ending the agreement and consequences
• Dispute Resolution: Process for handling disagreements and applicable jurisdiction
• Assignment Provisions: Rules for transferring rights or obligations to other parties

A Development Agreement differs significantly from a Asset Purchase Agreement in several key ways. While both deal with property transactions, they serve distinct purposes and operate differently under English law.

• Timing and Process: Development Agreements focus on future improvements and construction, while Asset Purchase Agreements deal with immediate transfer of existing assets
• Scope of Obligations: Development Agreements include ongoing commitments, construction specifications, and phased completion requirements; Asset Purchase Agreements typically involve one-time transfers with minimal ongoing obligations
• Risk Distribution: Development Agreements spread construction and planning risks over time between parties; Asset Purchase Agreements usually transfer all risks to the buyer at completion
• Planning Elements: Development Agreements often include detailed planning conditions and local authority requirements; Asset Purchase Agreements rarely address future development potential