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Real Estate Development Term Sheet Template for United States

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Key Requirements PROMPT example:

Real Estate Development Term Sheet

"I need a Real Estate Development Term Sheet for a mixed-use development project in downtown Seattle, with a total budget of $50M and planned groundbreaking in March 2025, focusing particularly on sustainability requirements and community benefits."

Document background
A Real Estate Development Term Sheet is commonly used in the initial stages of property development projects to establish fundamental agreement terms before proceeding with detailed legal documentation. It typically precedes formal agreements and helps align parties' expectations regarding project scope, financial arrangements, and timeline. This document is particularly important in U.S. real estate transactions as it provides a framework for negotiation and serves as a reference point for attorneys drafting definitive agreements. The term sheet addresses critical aspects such as property details, development plans, financial terms, and key milestones while remaining flexible enough to accommodate project-specific requirements.
Suggested Sections

1. Parties: Identification of developer, property owner, and other key parties involved in the development project

2. Background: Project overview, context, and purpose of the term sheet

3. Definitions: Key terms and their meanings used throughout the term sheet

4. Property Description: Legal description and details of the development site, including location, boundaries, and current condition

5. Project Scope: Detailed description of the proposed development, including type, size, and intended use

6. Timeline: Key dates and milestones for the development, including start date, completion phases, and deadlines

7. Financial Terms: Budget, costs, financing arrangements, and payment terms

8. Regulatory Compliance: Requirements for compliance with federal, state, and local regulations

9. Due Diligence: Required investigations, studies, and assessments to be conducted

Optional Sections

1. Environmental Considerations: Environmental impact assessments and mitigation measures, applicable when project has significant environmental implications

2. Community Benefits: Proposed benefits to local community, required when project needs community support or public approval

3. Phasing Plan: Details of multiple development phases, applicable for large-scale projects

4. Affordable Housing Component: Details of affordable housing requirements and compliance, applicable in jurisdictions with mandatory affordable housing provisions

5. Historic Preservation: Requirements and considerations for historic preservation, applicable when development involves historic properties

Suggested Schedules

1. Schedule A - Site Plan: Detailed plans and drawings of the proposed development

2. Schedule B - Financial Pro Forma: Detailed financial projections and assumptions

3. Schedule C - Environmental Reports: Environmental studies and impact assessments

4. Schedule D - Market Analysis: Market research and feasibility studies

5. Schedule E - Zoning Documentation: Current zoning status and required changes

6. Schedule F - Development Timeline: Detailed project schedule with key milestones and deadlines

7. Schedule G - Required Permits: List of required permits and their status

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Americans with Disabilities Act (ADA): Federal legislation requiring accessibility standards in design and construction for public accommodations and commercial facilities

Fair Housing Act: Federal law prohibiting discrimination in housing transactions based on race, color, national origin, religion, sex, familial status, and disability

EPA Regulations: Federal environmental regulations including Clean Air Act, Clean Water Act, and National Environmental Policy Act (NEPA) governing environmental impact of development

OSHA Regulations: Federal workplace safety standards that must be followed during construction and development phases

Federal Tax Laws: Tax regulations and incentives affecting real estate development, including depreciation, capital gains, and opportunity zones

State Zoning Laws: State-specific regulations governing land use, building height, density, and permitted uses of property

Building Codes: State and local construction standards ensuring safety and structural integrity of buildings

State Environmental Regulations: State-specific environmental protection requirements, often more stringent than federal regulations

Real Estate Licensing Requirements: State laws governing licensing of real estate professionals and development entities

Local Development Regulations: Municipal and county-level rules for development, including planning permissions and land use restrictions

State Property Laws: State-specific regulations governing property rights, transfers, and obligations

Construction Lien Laws: State-specific mechanics' and materialmen's lien regulations protecting contractors and suppliers

Local Permitting Requirements: Municipal processes for obtaining necessary construction and development permits

Securities Laws: Federal and state regulations governing investment aspects of real estate development projects

Historic Preservation Laws: Federal and state regulations protecting historically significant properties and districts

Affordable Housing Requirements: Local and state mandates for inclusion of affordable housing units in development projects

Impact Fee Regulations: Local requirements for developer contributions to infrastructure and community improvements

Utility Requirements: Local and state regulations governing connection to and provision of essential utilities

Transportation Requirements: Local regulations regarding parking, traffic impact, and transportation infrastructure

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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