A Letter of Intent Development Agreement is commonly used in the early stages of property development projects in England and Wales when parties wish to formalize their intentions before entering into a full development agreement. This document typically precedes more detailed agreements and helps establish the framework for future negotiations while protecting both parties' interests. It includes essential information about the proposed development, timelines, conditions precedent, and any exclusive negotiating periods. The document serves as a crucial stepping stone in the development process, particularly for complex projects requiring significant due diligence or planning permission.
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1. Parties: Identification and details of all parties involved in the development agreement
2. Background/Recitals: Context of the development project and relationship between parties
3. Definitions: Key terms used throughout the document
4. Project Description: Detailed outline of the proposed development
5. Due Diligence Period: Timeframe and scope for investigations and feasibility studies
6. Binding Terms: Explicitly stated terms that are legally binding
7. Non-Binding Terms: Terms that are expressions of intent but not legally binding
8. Exclusivity: Period during which parties agree not to negotiate with others
9. Confidentiality: Obligations regarding sensitive information
1. Planning Permission: Terms regarding obtaining necessary planning approvals - include when planning permission is not yet secured
2. Funding Conditions: Requirements for securing project funding - include when external funding is required
3. Environmental Conditions: Environmental requirements and assessments - include when environmental concerns exist
4. Break Clauses: Conditions under which parties can terminate the agreement - include when specific exit points are needed
5. Cost Sharing: How preliminary costs will be shared - include when significant pre-development costs are expected
1. Site Plan: Plans and drawings of the development site
2. Development Programme: Proposed timeline for key development milestones
3. Initial Cost Schedule: Preliminary budget and cost estimates
4. Planning Requirements: List of required planning permissions and conditions
5. Due Diligence Requirements: Checklist of required investigations and studies
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