Developer agreements belong to the category of the so-called innominate agreements. It means that each agreement may vary in form and content and also may take the form of a reservation agreement, preliminary agreement (in most cases) or a promised agreement.
A developer agreement predominantly consists in purchasing the right to the forthcoming transfer of ownership of a property (e.g. as soon as a given building has been erected). Considering this aim and the high amounts of money it often entails, the agreement must cover a range of details which serves as kind of protection for the parties’ interests.
These details include the date and place of concluding the agreements, the price of purchase of the abovementioned right, information on the property and its characteristics, the final date for issuing the payment by the purchaser, the final date for transferring the right by the developer onto the purchaser and, most importantly, the obligation to erect the building stipulated by the developer.
Should a developer agreement be concluded as a reservation agreement, its main aim solely consists in examining the interest in the investment by the potential clients.
Whereas the preliminary agreement is a document by virtue of which the parties oblige themselves to conclude the final agreement in future. In the event of any setbacks, it allows pursuing claims – depending on the form of the agreement – claims for damages or even demanding conclusion of the promised agreement. The promised agreement is simply the final agreement and as such, it requires the form of notarial deed.
CGO Legal law firm verifies already drafted developer agreements – prior to signing them
by the parties – as well as drafts such agreements anew.
Please do contact us to obtain more details.