There are two types of trust relevant to a development agreement: trust and constructive trust. The agreement required Jojill to sell Lot 2 on Woodfield`s orders and not otherwise to produce the product. On November 28, 2002, Woodfield issued a reservation on the property reserve and, due to “constructive business relationship confidence,” requested an “appropriate fee rebate.” In addition to controlling costs and revenues, it is important that the parties agree on the timing of development and the steps that need to be taken to ensure success of development. Common milestones include: the State Revenue Commissioner has assessed the Duties Act 2000 (Vic) land transfer tax as the sum of the sums paid by Lend Lease VicUrban under the development agreement. Lend Lease objected to the assessment and argued that the consideration for the transfer could only be the amount set in the contract to sell the land. Lend Lease submitted that the amounts that could or would be the subject of a lend Lease contribution to VicUrban`s development costs and the amounts that would be paid as a share of the sums that Lend Lease would make on its sale of the land were not part of the transfer consideration3. In order to avoid the creation of constructive trust, the parties should ensure that the development agreement does not give the developer the power to require the transfer of land to a particular part, with the benefit of the sale to the developer. In Commissioner of State Revenue/Lend Lease Development Pty Ltd2, the High Court found that the land transfer tax could be levied not only on payments from land contracts, but also on payments made under a development agreement which, together with land sales contracts, constituted a single and integrated operation for the sale and development of the area. With respect to the sale of UN, the parties should ensure that the sale price and all other funds payable under the agreement are properly structured to end unnecessary tax obligations. If the parties share control over development, it is worth including appropriate deadlock provisions to ensure that development is not impeded.
The development agreement should be developed to minimize the possibility of a deadlock. The content of the deadlock provisions is a matter of negotiation, while the parties should ensure that they contain at least some form of dispute resolution. Since the relationship governed by a development agreement can last five years or more, the agreement should be developed in such a way as to avoid a deadlock where possible. Parties should examine and examine potential deadlock problems, such as planning risks. B, and include mechanisms and options in the agreement to avoid a deadlock. In 2001, Lend Lease signed a dirty DA with VicUrban for the sale and development of part of the Docklands district in Melbourne. The parties agreed that the development should be orchestrated and that VicUrban transfer the country in tranches to Lend Lease. Lend Lease would occupy land, design, build and sell residential and commercial buildings in the countryside. Each of Lend Lease and VicUrban would build different infrastructures on and around the earth.