Reciprocal Easement Agreement Sample
A mutual facilitation agreement – REA agreement is required if two or more owners of adjacent land decide to jointly develop a commercial property. 5. Use, reconquest of rights and rights of the first offer. Some REAs may require the large retailer to use its property for a particular use, or limit certain uses on the development field to the benefit of the large retailer. In the event that the large retailer is required to use its property for a specified use and to stop for a certain period of time (usually six months, but subject to an extension for conversions, losses or other events beyond the control of the large retailer), the developer may obtain the right to acquire ownership of the large retailer for fair market value. In theory, this gives the developer the right to «control» their property or to rent or sell the large retail property to a user who uses his property for retail use compatible with the rest of the mall. The REA may also provide that if one party wishes to sell its property to an unrelated third party, the other party has a short «initial offer» to acquire the seller`s property. The right to buy would be at a price that can be agreed upon by both parties. In the event that the parties are unable to obtain such a price agreement in a short period of time, the party wishing to sell its property would have the right to sell it to an unrelated third party. However, the REA may require the seller to put the other party`s property up for sale if he is unable to sell the property within a specified time frame at a price of 95% or more of the purchase price offered by the other party. It should be recognized that the REA is a bipartisan agreement (i.e. between the developer and the major retailer) or a tripartite agreement (i.e.
between the developer and several retailers). In addition, it is possible that between two or more landowners (none of them or any of them is a retailer), an REA may be closed to develop their respective properties. This type of REA is less common and would deal with some, but not all of the same problems as an REA between a developer and a large retailer. The typical bipartisan REA between a developer and a retailer would address the following issues. 1. Facilities for car parks, access, interventions and services. The REA should grant both parties the most fundamental rights for the harmonious operation of their respective properties. Each party should have the right to access the other party`s land for vehicle parking and vehicle access and pedestrian access. For example, customers and employees of a large retail business must park anywhere in the mall (subject to agreement from the parties to provide special spaces for staff parking) and go anywhere inside the mall. For customers of mall residents, the property appears to be party property and will be operated as a fully integrated shopping mall.
Each party must also «attach» to the procurement systems of the other parties, which is most common when the large retailer «attaches» to the developer`s supply systems for the mall.