2. Construction and architecture compatibility. The REA generally provides that the developer will provide for all on-site and off-site improvements, which include the shopping centre, as well as improvements relevant to buildings located on the developer`s property. The major retailer will be responsible for the construction of the retail building. As a general rule, the REA requires each party to verify and approve each party`s work plans and specifications, creating architectural compatibility for all construction work in the mall. In addition, the REA generally provides that each party develops its improvements according to an approved construction schedule for both parties. The REA, or a separate development agreement, will require the major retailer to reimburse the developer a reasonable portion of the costs incurred by the developer to build the upgrades to the mall on and off site. 5. Use, reconquest of rights and rights of the first offer. Some REAs may require the large retailer to use its property for a particular use, or limit certain uses on the development field to the benefit of the large retailer. In the event that the large retailer is required to use its property for a specified use and to stop for a certain period of time (usually six months, but subject to an extension for conversions, losses or other events beyond the control of the large retailer), the developer may obtain the right to acquire ownership of the large retailer for fair market value.
In theory, this gives the developer the right to “control” their property or to rent or sell the large retail property to a user who uses his property for retail use compatible with the rest of the mall. The REA may also provide that if one party wishes to sell its property to an unrelated third party, the other party has a short “initial offer” to acquire the seller`s property. The right to buy would be at a price that can be agreed upon by both parties. In the event that the parties are unable to obtain such a price agreement in a short period of time, the party wishing to sell its property would have the right to sell it to an unrelated third party. However, the REA may require the seller to put the other party`s property up for sale if he is unable to sell the property within a specified time frame at a price of 95% or more of the purchase price offered by the other party. it is registered by the parties in the county in which the property is located and creates certain contractual obligations between the developer and the major retailer that allow the construction of a shopping centre. After construction, the mall is operated as an integrated retail project. These contractual obligations will run “with the land” of the property that includes the shopping centre. In other words, the owner and any subsequent owner of all or part of the shopping centre will be subject to the obligations of the REA and will benefit from these rights.