The Development Agreement For Redevelopment is a crucial document used in Hong Kong's dynamic real estate market when existing properties are to be demolished and rebuilt or substantially renovated. This agreement is particularly relevant in urban areas where aging buildings need to be replaced with modern structures, or where property optimization opportunities exist. The document comprehensively addresses Hong Kong's complex regulatory environment, including compliance with Buildings Ordinance, Town Planning Ordinance, and Urban Renewal Authority requirements. It typically includes detailed provisions for obtaining necessary permits, managing construction processes, ensuring environmental compliance, and handling multiple stakeholder interests. The agreement is especially important in situations involving multiple property owners, joint venture arrangements, or urban renewal schemes, providing a clear framework for project execution while protecting the interests of all parties involved.
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1. Parties: Identification of the developer, property owner(s), and any other key parties to the agreement
2. Background: Context of the redevelopment project, including property details and development objectives
3. Definitions: Defined terms used throughout the agreement
4. Project Scope: Detailed description of the redevelopment work to be undertaken
5. Development Obligations: Key obligations of the developer including construction, timing, and quality requirements
6. Conditions Precedent: Conditions that must be satisfied before development can commence
7. Development Program: Timeline and milestones for the development process
8. Approvals and Permits: Requirements for obtaining necessary governmental and regulatory approvals
9. Financial Terms: Payment terms, development costs, and profit-sharing arrangements
10. Property Rights and Access: Rights of access and use during development
11. Risk and Insurance: Allocation of risks and required insurance coverage
12. Default and Termination: Events of default and termination rights
13. Dispute Resolution: Procedures for resolving disputes
14. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Environmental Requirements: Include when the project requires environmental impact assessment or has specific environmental obligations
2. Heritage Conservation: Include when the development involves heritage buildings or sites
3. Profit Sharing: Include when there is a joint venture element to the development
4. Pre-sales and Marketing: Include when the agreement covers sales activities during development
5. Community Engagement: Include when public consultation or community benefits are part of the development
6. Interim Income: Include when dealing with income from existing properties during development
7. Multiple Phase Development: Include when the project will be developed in phases
1. Property Description: Detailed description of the development site including plans and title details
2. Development Plans: Architectural drawings, plans, and specifications
3. Development Program: Detailed timeline with key milestones and deadlines
4. Planning Permissions: Copies of existing permissions and requirements for new permissions
5. Financial Model: Development budget, cost allocation, and financial projections
6. Form of Guarantees: Templates for any required performance or financial guarantees
7. Insurance Requirements: Detailed insurance specifications and coverage requirements
8. Environmental Reports: Environmental impact assessments and mitigation measures
9. Technical Specifications: Detailed construction and technical requirements
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