The Development Lease Agreement is a specialized contract used in the Philippines when a property owner grants both leasehold rights and development rights to a developer-lessee. This document is particularly relevant for commercial, industrial, or mixed-use projects where the developer seeks to construct or significantly modify structures on leased land. It must comply with Philippine real estate laws, including the Civil Code, Presidential Decree No. 957 for real estate development, and local building codes. The agreement typically includes detailed provisions for construction timelines, development standards, environmental compliance, and eventual property operation, making it essential for large-scale development projects where the developer doesn't purchase the land outright but requires long-term control for their development plans.
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1. Parties: Identification of the Lessor and Lessee/Developer with complete legal names and addresses
2. Background: Context of the agreement, including property description and development intention
3. Definitions: Defined terms used throughout the agreement
4. Grant of Lease: Terms of the lease grant, including duration and purpose
5. Development Rights and Obligations: Specific rights and obligations regarding property development
6. Development Timeline: Construction and development milestones and completion dates
7. Rent and Other Payments: Rental structure, development fees, and payment terms
8. Security Deposit and Advance Rent: Details of security deposit and any advance rent requirements
9. Permits and Approvals: Requirements for obtaining necessary governmental permits and approvals
10. Use of Premises: Permitted use of the property during and after development
11. Maintenance and Repairs: Responsibilities for property maintenance and repairs
12. Insurance: Required insurance coverage during development and lease period
13. Assignment and Subletting: Terms governing transfer of rights or subletting
14. Default and Termination: Events of default and termination procedures
15. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms
1. Environmental Compliance: Required when the development has significant environmental impact or requires environmental clearances
2. Heritage Preservation: Included when the property has historical or cultural significance
3. Community Relations: Required for developments in densely populated areas or with significant community impact
4. Financing Provisions: Included when development is subject to external financing arrangements
5. Force Majeure: Detailed force majeure provisions for high-risk developments
6. Pre-existing Tenancies: Required when dealing with property having existing tenants
7. Utilities and Infrastructure: Detailed provisions for developments requiring significant utility or infrastructure work
8. Sustainable Development Requirements: Included when green building or sustainable development standards apply
1. Property Description: Detailed technical description of the property including boundaries and technical specifications
2. Development Plans: Architectural plans, drawings, and technical specifications
3. Construction Timeline: Detailed construction and development milestones with specific dates
4. Rent Schedule: Detailed breakdown of rent calculations and payment schedules
5. Required Permits and Licenses: List of all required governmental approvals and their status
6. Environmental Requirements: Environmental standards and compliance requirements
7. Insurance Requirements: Detailed insurance coverage requirements and minimum limits
8. Form of Bank Guarantee/Security Deposit: Template for bank guarantee or security deposit arrangements
9. Building Specifications: Detailed building specifications and quality standards
10. Handover Conditions: Specifications for property condition upon completion of development
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