A real estate development agreement regulates theimplementation of a development on an area of land. In thepresent work, a method is developed to analyse the structure ofthese agreements regarding their commitments. The types ofcommitments, as they are presented in the agreements in thisinvestigation, are transformed to standardised terms. Facts andrules that influence real estate development and the design ofagreements are identified in this report. The structure ofcommitments and its association with external facts (thedemographic circumstances at different points of time, theeconomic situation, and the extent of construction in the wholecountry) and internal facts (the landowner context and thephysical plan situation) are investigated by statisticalmethods.
The planning monopoly of the Municipality plays an importantrole in that it allows the Municipality to adopt a detailedplan, and through that means to direct the construction ofbuildings. This is illuminated in the use of developmentagreements to carry out developments. The detailed plan statusis found to have a great influence on the content of theagreements. But it is also made plain that the structure ofcommitments depends on the combination of the land possessionsituation and the detailed plan status. Commitments directlyinvolved in the transfer of land are typicall in thesecombinations.
One question that is discussed is how the obligation of theDeveloper to finance facilities like roads, utilities, parks,pedestrian areas, bicycle paths and so on, is expressed. Thematerial confirms that this obligation can be transformed intopractical commitments, i.e. construction of facilities.
In some cases the commitments in the agreements seem to becontradictory or redundant. Generally these may be explainedreasonable assumptions concerning the parties' behaviour withregard to rules and established practice.
The content of the real estate development agreements iscomplimentary to the rules existing in the law. Agreementsfacilitate the accomplishment of developments and in doing so,make the administrative course of unnecessary, for example theyremove the need for decrees from the County AdministrationBoard after applications from the Municipality.
It has been questioned whether the real estate developmentagreements are abused, i.e. whether the Municipality forces theDeveloper to make financial commitments beyond what is calledfor in law, simply because of its advantage of planningmonopoly. Based only on the agreements, it is not possible todetermine if such injustices exist. On the other hand there isa clear consistency in the design of the agreements.
Keywords:real estate development agreement,multivariate statistical methods
Stockholm: Infrastruktur , 2002. , xii, 234 p.