Preparing the contract
The essential contents of a Development Contract are set out in Schedule 2 Community Land Development Act 1989. The approved form of a Development Contract is set out in Approved Form 27 (PDF 93 KB). There are two options:
- the developer does not intend providing any improvements or,
- the developer intends to provide services.
Where the developer does not intend to provide any improvements
If a Development Contract 'does not require the provision of amenities' and ''does not require any work done by the developer on the parcel to which it relates', then the developer may simply furnish a certificate to that effect - see cl.3, sch.2 Community Land Development Act 1989.
The certificate must be signed by the consent authority as the authority will be aware of whether or not the developer intends to provide improvements.
The Development Contract will include :
- The warning drawing attention to the possibility that the scheme may be varied or not completed and the necessity for purchasers to examine the management statement for details of their rights and obligations - see cl.4, sch.2 Community Land Development Act 1989. The prescribed warning is set out in cl.30 Community Land Development Regulation 2007.
- The certificate by the developer that no improvements or facilities are to be provided. The certificate simply states that the developer does not intend to construct or provide any additional improvements within the scheme. A form for the certificate has been prescribed and appears as an undertaking by the developer within the prescribed Development Contract.
- The signature of the developer or duly authorised agent - see cl.5 sch.2 Community Land Development Act 1989.
- Execution by the consent authority - see s.26(2) Community Land Development Act 1989.
Where the developer does intend to provide services
The Development Contract will include:
- The prescribed warning that the development may not be completed, as specified in cl.30 Community Land Development Regulation 2007.
- A description of the land to be developed its location, title reference etc
- The amenities proposed to be provided by the developer the improvements not yet built or installed but which the developer proposes to provide at some future time on the neighbourhood property. It is also feasible that the developer proposes to add improvements to the neighbourhood lots as well as to neighbourhood property e.g. the construction of dwellings following certain architectural guidelines, landscaping, fencing etc.
- A description of the basic architectural design and landscaping applicable to the scheme. The description of an architectural theme disclosed in a Development Contract is intended primarily to dictate the style of improvements that the developer will follow when constructing the amenities promised in the contract. Where the developer is not proposing to construct any improvements on the neighbourhood lots but wishes to ensure that an overall architectural theme is followed details of the theme would more appropriately be included as a by-law in the management statement.
- A simple pictorial representation of the anticipated appearance of the completed development. This may take the form of an architect's sketch.
- Details of access and construction zones, working hours and related rights, to ensure that prospective purchasers are fully aware of the extent of physical inconvenience etc during the construction of improvements within the scheme. Developers wishing to reserve rights to utilise neighbourhood property in a construction zone should take care to complete this part of the Development Contract in detail to ensure that adequate power is available to honour all commitments. Such disclosed construction zones become binding on purchasers of neighbourhood lots.
- An undertaking by the developer not to cause unreasonable inconvenience to proprietors of lots in the scheme and to repair without delay any damage caused to neighbourhood property by development related activities.
- Execution by the developer or developer's duly authorised agent.
- Execution by the consent authority pursuant to s.26(2) Community Land Development Act 1989.