Development Agreement Definition

An agreement between a landowner (often a recent or prospective buyer) and a developer, requiring the developer to procure works, usually with a view to producing an income from letting the completed units. The landowner and the developer may share future revenues.

Why doesn't the landowner cut out the developer and commission the works himself? Because the developer may have introduced the site to the landowner on condition of further involvement, and/or may have more expertise in direct developments than the landowner, and/or may have relationships with consultants and contractors which enable him to create a profitable scheme.