Property development

This Overview is a guide to the Banking & Finance content within the Real estate finance: Property development subtopic, with links to the appropriate materials.

The key concern for a lender providing finance for the development of property is that the development works are completed on time and within budget so that the developed property can start to generate income. It is important for banking and finance lawyers to have a basic understanding of:

•
how developments are procured by the borrower, and
•
the key parties and contracts involved in developing a property

as this will impact on the terms of the finance documents.

Construction lawyers are of particular importance in real estate finance development transactions, working closely with the banking and finance lawyers, reviewing the development documents and drafting and negotiating the collateral warranties.

Key construction related issues

Key construction related issues which banking and finance lawyers should be aware of in real estate development finance will centre around the form of procurement for the development, the key parties to the development and the development documentation including the building contract and the collateral warranties.

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