How can development agreements affect a property?

Development agreements significantly impact a property by imposing additional restrictions or obligations that act as encumbrances. These agreements are legal contracts between developers and local governments or municipalities and can outline various conditions, requirements, and commitments related to the development, use, or management of the property.

Such encumbrances may include stipulations regarding zoning regulations, building design, timelines for construction, infrastructure improvements, environmental protection measures, or contributions to public facilities. As a result, they can influence how the property can be developed or used and may also affect its value and marketability due to the associated compliance requirements and potential limitations on the owner's rights. By defining these parameters, development agreements serve to balance the interests of developers with community goals and regulations, shaping the future of the property in significant ways.