The Memorandum of Understanding Between Landowner And Developer is a crucial preliminary document used in Philippine real estate development projects when parties wish to formalize their initial understanding before committing to a full development agreement. It is typically used when a developer has identified a potential development opportunity and needs to conduct due diligence while securing exclusive negotiation rights with the landowner. The document reflects Philippine property law requirements and includes essential provisions for property investigation, confidentiality, and the framework for moving toward a definitive agreement. It serves as a stepping stone to more detailed agreements while protecting both parties' interests during the preliminary phase of their relationship. The MOU is particularly important in the Philippine context where property development often involves multiple stakeholders and regulatory requirements at both national and local levels.
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1. Parties: Identification of the landowner and developer, including complete legal names and addresses
2. Background: Context of the proposed development, brief description of the property, and parties' intentions
3. Definitions: Key terms used throughout the MOU
4. Purpose and Scope: Overview of the proposed development project and scope of the MOU
5. Duration: Term of the MOU and conditions for extension or termination
6. Due Diligence: Rights and process for developer to conduct feasibility studies, surveys, and investigations
7. Exclusivity: Agreement by landowner not to negotiate with other developers during the MOU period
8. Confidentiality: Obligations regarding confidential information shared during the MOU period
9. Costs and Expenses: Responsibility for costs incurred during the due diligence period
10. Path to Formal Agreement: Process and timeline for negotiating and executing a formal development agreement
11. Governing Law: Specification of Philippine law as governing law
12. Execution: Signature blocks and execution details
1. Initial Payment: Include when there is an upfront payment or deposit required from the developer
2. Foreign Investment Provisions: Required when the developer is a foreign entity, addressing compliance with Philippine foreign investment laws
3. Local Government Coordination: Include when specific local government requirements need to be addressed during the MOU period
4. Environmental Assessment: Include when the development requires specific environmental impact studies
5. Broker or Agent Provisions: Include when a broker or agent is involved in the transaction
6. Force Majeure: Optional clause addressing unforeseen circumstances that might affect the MOU implementation
1. Property Description: Detailed description of the land, including boundaries, title details, and current encumbrances
2. Preliminary Development Concept: Basic outline of the proposed development project
3. Due Diligence Requirements: List of studies, investigations, and approvals required during the MOU period
4. Timeline: Schedule of key milestones and deadlines for the MOU period
5. Authorized Representatives: List of designated representatives from each party authorized to act under the MOU
6. Required Permits and Licenses: List of anticipated governmental approvals needed for the development
Relevant legal definitions
Clauses
Relevant Industries
Real Estate Development
Commercial Property
Residential Property
Industrial Development
Mixed-use Development
Retail Development
Hospitality and Tourism
Agricultural Land Development
Urban Planning and Development
Infrastructure Development
Relevant Teams
Legal
Real Estate Development
Property Management
Business Development
Investment
Compliance
Project Management
Urban Planning
Finance
Operations
Relevant Roles
Real Estate Development Manager
Property Owner
Land Acquisition Manager
Real Estate Attorney
Development Director
Project Manager
Chief Development Officer
Investment Manager
Property Broker
Legal Counsel
Urban Planning Director
Business Development Manager
Chief Executive Officer
Real Estate Investment Director
Compliance Officer
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