Creating an effective land use agreement template: a complete overview

What is a land use agreement?

Land use agreements are part and parcel to the relationship between property owners and the real estate development industry. Whether the real estate in question is raw land, a vacant parcel waiting to be developed, the building that sits upon it, or something else entirely, land use agreements put the rules and expectations on paper. They help developers, land owners, and the communities they work or live in understand their rights and responsibilities.
Land use agreements, in the context of real estate, are often confused with zoning and building codes. Zoning and building code regulations generally apply to the community at large, dictating how land may be used, how it is developed and laid out, where buildings can be located on a property, and much more. They govern land use within an entire jurisdiction and apply to all properties, reaching far beyond individual lots, and can sometimes affect multiple jurisdictions that are in close proximity and share a border . Code enforcement officers and other officials, an elected body such as a board of zoning appeals, or a zoning board, arbitrate and enforce the rules set out in the local codes and regulations. Land use agreements, on the other hand, are between property owners (or their agents) often for the purpose of, but not limited to, the construction, development, operation, sale, management, use, or disposition of real estate. They are generally negotiated by the parties directly, although they can be drafted in a uniform manner and used among similarly situated parties. The primary intention of a land use agreement, is to facilitate a transaction between mutually interested parties, between whom a special relationship exists, and to outline the scope of that relationship and its associated rights and obligations. Because of their ability to outline contracting party’s rights, obligations, and expectations in relation to the other parties’ performance, land use agreements are often also called "contracts for land use".

Essential elements of a land use agreement

To form a compelling case around a core objection, you must address the key components of the land use agreement in question. While a template land use agreement may contain other or additional components, the following are the essential elements we present our clients’ objections against the spirit of the master development plan:
The Parties
The initial portion of a land use agreement lays the groundwork for establishing a legal premise. The parties will be clearly linked to their respective obligations and entitlements by this section. Any third parties who hold obligations or entitlements under the agreement will also be cited here.
Duration
Non-perpetuity is the best legal remedy for preventing a gravel operation from profiting indefinitely. Our client’s interests are better served by limiting a gravel operation to one owner and limiting ownership duration to the time necessary to mine a parcel of land and reclaim it after extraction is complete.
Permitted Activities
The majority of a land use agreement is dedicated to describing the activities permitted. Use, development, and construction activities must be explicitly defined and carefully worded to help achieve a strong objection.
Conditions
Permitted conditions are basic requirements or terms that apply to a land use agreement. Conditions ensure both parties commit to the same terms regarding how activities are conducted and/or how property is transferred.

Advantages to a land use agreement template

Employing a pre-designed land use agreement template can offer numerous advantages to both landowners and developers. One of the most significant benefits is time efficiency. By utilizing a standard template, parties can save hours of negotiations and drafting. These templates are usually developed by legal experts in the field who have carefully considered the requirements, risks, and obligations of both parties. As a result, a well-structured template can provide a strong starting point for negotiations and eventually lead to a more efficient drafting process.
Another benefit of using a land use agreement template is legal consistency. When land use agreements are drafted by legal professionals experienced in local, state, and federal regulations, the resulting document is more likely to comply with all applicable laws and relevant case law. A template that is specific to the area and type of agreement being drafted can help ensure that all necessary clauses, terms, and conditions are included and uniformly interpreted. This not only leads to greater legal consistency but also reduces the chance of litigation down the road.
Additionally, these templates are generally designed to be easily customized. While they provide a solid foundation, they often include instructions or comments within the document that outline the sections that require modifications, as well as other adjustments that may be necessary based on the unique circumstances of the specific land use agreement. This makes it easier for parties to tailor the agreement to their specific needs and ensures that no important provisions are omitted.

How to edit your land use agreement template

While many basic land use agreement templates will cover common use cases, each situation is different and may require specific provisions to be applicable to your situation. Fortunately for those interested in creating a land use agreement, the basic terms can be drafted in such a way that allows you to easily add or omit clauses to meet your needs and the general needs of your intended use.
A good land use agreement template will address without difficulty:
These terms should be easy enough to insert or remove in the drafting process. If your intended use requires additional provisions, simply add or omit as necessary.
Some agreement templates even offer guidance on how to fill in relevant information. These templates are available from a number of sources all over the internet. In most cases, the site providing the template will allow you to customize your basic agreement before downloading it for your records.

Common issues and solutions in land use agreements

Even the most well-drafted land use agreements cannot guarantee a dispute-free usage of the land in question. It is therefore critical for land owners, operators and developers to understand the various common challenges associated with land use agreements and how best to avoid (or handle) them.
Common issues associated with land use agreements include disputes over land usage, particularly in relation to lessees that could potentially be a nuisance to neighbors or disrupt other pre-existing agreements on the land. For example, an operator may seek to use a property for a different purpose than was originally intended, or there could be concerns over drilling activity in a particular location. While these concerns generally are addressed in the agreement for all parties prior to signing, unforeseen issues often arise.
Land use disputes on raw land can be particularly tricky, especially when one party’s use of the land could result in the disruption, damage, interference or injury to the land of another party or to a third party to whom the land has been leased. This can be a concern particularly when there is a breakdown of the relationship among land owner, operator and developer—especially when the original intent of the land use agreement has been altered over time.
In addition , in some land use agreements there are restrictions on how land can be used if the land is not actively being developed. While this could initially be seen as a way to avoid such problems as described above, it can also act as double-edged sword if the use of the land is prohibited for a particular purpose if no development is occurring and yet the land owner, operator or developer wants the freedom to develop the land.
As with all agreements, the best way to avoid disputes is to anticipate issues and include provisions in the land use agreement that accommodate potential problems. In most cases, this means addressing what to do in the event of a dispute, as well as including a clause prohibiting either side from interfering with the rights of the other to use the land as agreed upon in the agreement.
This includes outlining the required degree of notice to the land owner of any potential disruption or damage to the land, as well as specifying the remedies to be exercised under the land use agreement in the event of a dispute. This may also mean specifying that any disputes be submitted to binding arbitration (and expenses incurred should be shared among the parties to the land use agreement).
The bottom line is that careful work and diligence should be undertaken in drafting a land use agreement beforehand to limit the risks of land disputes.

Legal requirements and obligations

The drafting and use of a land use agreement must be considered in light of various legal frameworks and compliance issues. For example, the use of a land use agreement to require or regulate development on nearby coal tenements may have adverse implication for mining law tenements under the Mining Act and the common law. The coal tenement may also be subject to the Environmental Planning and Assessment Act 1979 (NSW) or other environmental law. As a result, land use agreements need to be carefully drafted and reviewed.
Conflict of Laws Often land use agreements are used by landowners to impose restrictions on future use of land parcels whose owners are not necessarily known or identifiable or in occupation of the land. Accordingly, when preparing a land use agreement consideration needs to be given to the various laws of each relevant jurisdiction to see which will apply, and how conflicts can be avoided.
Public Policy Generally, public policy is concerned with the interests of the community as opposed to the parties to a contract. There are a number of areas (examples include maintenance of the family home, restraint of trade and monopolies) where the courts place a public policy restriction on private agreement. As a consequence, an agreement that is against public policy may be void or unenforceable at law.
Common Parliamentary Purpose / Compensation Rights Land use agreements may be relied upon to trigger compensation entitlements under common law or legislation. For example, the establishment of a state significant development in accordance with the Environmental Planning and Assessment Act 1979 (NSW) may trigger the entitlement under that Act for the landowner of land on which the development is carried out to be compensated.
Land use agreements that provide for the use of land that triggers environmental planning laws or development consent thereby may trigger disclosure requirements under those laws, conditions of consent or obligations to provide community infrastructure or facilities.
Government Land Issues Land use agreements made concerning land owned by the Crown may be susceptible to certain limitations that are intended to uphold government requirements.
This clause allows the Minister or the Governor to terminate existing land use agreements that would prevent the Crown from carrying out public purposes legislation.
There are restrictions on the ability of statutory corporations, State Owned Corporations, local councils and other entities and authorities that are established under legislation from disposing of or dealing with their assets. Further, a statutory land use agreement may be able to be dealt with by administrative order or direction under the legislation establishing the corporation in certain circumstances.
Commonwealth and State Government Land Issues relating to the disposal of land by Commonwealth and State Governments are complex, but the use of land use agreements nevertheless needs to take account of government considerations. The statutory requirements of governments, including requirements for tenders and public notices, may need to be complied with as a result of the tenure arrangement.

Land use agreement template examples

Land use agreement templates can be generally defined as being majorly applicable to many prevalent situations, typically exercised, for instance, between property owners and their neighbors, in the event that certain developments are sought by one party, and opposed by the other. They can also be key to multi-party, or even bi-party, agreements and contracts, in which case, a land use agreement template may be needed to handle the particulars of the agreement, which can at times be unique, and thus not well handled by any other type of contract or agreement template.
Examples of contracts or agreements in which a land use agreement template can be used include common situations like a road maintenance agreement between various landowner parties, or a zoning agreement, also called a boundary agreement, which is similar to the road maintenance example in that it specifies the exact boundaries of the real estate in question.
Another common example where a land use agreement template can be put to use is a pipeline agreement, which is a contract or agreement specifying the rights and responsibilities of the land owner and the pipeline operator, which can include the requirement to remove the pipeline after the end of its operational use.
Finally, the last example in our limited enumeration is a partition agreement, which is an agreement about the separation of different parts of a property, especially in cases of legal interest separation, i.e. divorce.

Land use agreement negotiation tactics

Negotiating a land use agreement can often be challenging, particularly when the goals and interests of the parties are not aligned. However, with proper preparation and a willingness to compromise, you may be able to arrive at a virtually ideal land use agreement for your party’s needs. Some tips for negotiating land use agreements include: Be open to creative solutions. It is often possible to arrive at a better outcome through creative problem solving and understanding the other person’s point of view. Keep an open mind and be willing to explore a variety of options. Remember that you and the other party are likely seeking the same objective and simply disagree on the best methods for achieving that objective. Provide multiple choices. If you feel stuck with the options on the table , offer a variety of choices that don’t deviate from the overall goal of the agreement. This provides flexibility in the negotiations without giving too much ground. Avoid ultimatums. You may be tempted to drag out negotiations to get the other party to give you what you want, but this strategy could backfire and cause you to lose a deal. Just be clear about your goals and work toward achieving them. Often a little give and take can go a long way. Evaluate alternatives. Be prepared to move on from the negotiation if an agreement cannot be reached. Understand the benefits of entering a deal against the disadvantages of not doing so, and be willing to seek out other options if these are not favorable enough. The knowledge and skills of a real estate attorney are invaluable during the negotiation of a land use agreement. Consult a lawyer with experience in drafting these kinds of contracts, who can help ensure your terms are as favorable to your business as possible.