Land collaboration agreement | Practical Law

Land collaboration agreement | Practical Law

A collaboration agreement for use where adjoining landowners of freehold registered land agree to apply jointly for planning permission for a small-scale development on their combined site. Once a satisfactory planning permission which is no longer open to challenge is obtained, the parties agree to market and sell on the open market the whole of the land within the combined site that has the benefit of that planning permission. The standard document has been drafted for use by a maximum of three adjoining landowners but can be adapted if additional landowners will be parties.

Land collaboration agreement

Practical Law UK Standard Document 0-627-1877 (Approx. 110 pages)

Land collaboration agreement

Maintained, England, Wales
A collaboration agreement for use where adjoining landowners of freehold registered land agree to apply jointly for planning permission for a small-scale development on their combined site. Once a satisfactory planning permission which is no longer open to challenge is obtained, the parties agree to market and sell on the open market the whole of the land within the combined site that has the benefit of that planning permission. The standard document has been drafted for use by a maximum of three adjoining landowners but can be adapted if additional landowners will be parties.
If a satisfactory planning permission which is no longer open to challenge is not obtained by a certain date, any party may terminate the agreement before a satisfactory planning permission which is no longer open to challenge is obtained.
The landowners agree to share the planning, marketing and sale costs in fixed proportions. If satisfactory planning permission is obtained and the landowners' land that benefits from that permission is sold, the landowners will share the sale proceeds in the same fixed proportions.
The standard document uses the positive covenant and restriction method to secure each landowner's obligations under the land collaboration. If the parties choose an alternative method to secure the obligations, this standard document will not be appropriate.
A collaboration agreement is also sometimes referred to as a contractual joint venture, unincorporated joint venture, consortium agreement or co-operation agreement.
NOTE: When considering whether this standard document is suitable for their use, the parties must take tax advice on the tax implications for them of the structure proposed by this document.