Expert Insights

Expert Insights

Stop, collaborate and listen: Top 10 Tips with Collaboration Agreements

  1. Tax advice should be obtained by all landowners to ensure efficiency and the correct collaboration structure is adopted. 
  2. Consider how long will the collaboration last. Land can take a long time to be allocated in a local plan for planning and landowners should consider whether they are willing to restrict their dealings for a prolonged period. 
  3. Landowners should consider whether to include mechanisms in the agreement to accommodate changes in law and planning policy and any changes in the landowners’ own requirements
  4. Agree upfront clear objectives of the collaboration – this arrangement is the blueprint for the landowners’ approach to bringing the land forward for development.
  5. Are there to be any restrictions on use of the land in the collaboration before planning obtained? Consider what impact such use might have on future proposals.   
  6. Decision making is key – will all decisions require unanimity or will voting be weighted by reference to land-holdings. Consider including dispute resolution provisions.
  7. Choose your land promoter or developer carefully – is there a track record and adequate funding to bring the development forward?
  8. How will costs and sale proceeds be shared between parties (equalisation)? This is often done by reference to each landowner’s acreage, but be clear whether you will equalise on initial acreage, allocated acreage or the consented scheme.
  9. Agree on a solicitor and agent to represent the collaboration. They can be independent of all parties if necessary, but this will be an extra cost to the collaboration.
  10. Will the land require the construction of infrastructure?  This can affect the landowners’ tax arrangements. It may be preferable to wait until a promoter/developer is appointed.

For more information, please contact Phil Webb, Julie Sharpe or Ian Brothwood.

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