Document background
The Memorandum of Understanding Between Landowner And Developer serves as a crucial preliminary document in South African property development projects, establishing the groundwork for future collaboration between parties. It is typically used at the initial stages of a development project, after preliminary discussions but before detailed agreements are finalized. The document outlines the proposed development concept, sets expectations, and defines key responsibilities while protecting both parties' interests during the investigation phase. It must align with South African property law, including the Spatial Planning and Land Use Management Act and relevant provincial legislation. While not entirely binding, it includes enforceable provisions and serves as a roadmap for the development process, covering aspects such as due diligence requirements, cost allocation, and timeline expectations.
