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ECCRs for Shopping Center Development Projects

 Posted on April 15, 2024 in Commercial Real Estate

Naperville real estate development lawyersDuring a real estate development project, various legal concerns will need to be addressed. Property owners and developers will need to ensure that real estate transactions can be completed correctly and that they will be able to use the property as desired. They will also need to understand the various restrictions and agreements that may be put in place that will affect the rights of their tenants, owners of neighboring properties, and other stakeholders.

There are some unique concerns that may need to be addressed in development projects involving retail stores. The development of a shopping center requires the negotiation and drafting of easements, covenants, conditions, and restrictions (ECCRs). These are agreements that outline the rights and responsibilities of developers in relation to their properties. ECCRs also serve to protect the interests of tenants, investors, lenders, and other stakeholders involved in the development project. To negotiate these agreements successfully, it is important to understand what each document contains, how to best use them during negotiations, and how an attorney can help in the process. 

What Are Easements? 

Easements are legal documents that give a person or entity access to another person's property. This could include access for utility companies to lay down wires or pipes or even walking paths across a property so people can access an area without having to traverse private land. Generally speaking, an easement provides a specific set of rights and obligations between two parties that agree upon its terms. When it comes to shopping center development projects, easements may be needed for the construction and maintenance of utilities, sidewalks, parking lots, and other civil or commercial infrastructure. 

What Are Covenants? 

Covenants are written agreements between two parties involving real estate. They generally cover issues such as zoning laws, building regulations, business operations, and other property usage matters. These documents are legally binding contracts that establish certain rights and responsibilities in relation to a piece of land or structure. Covenants in shopping center development projects may address issues like prohibiting the sale of certain types of goods on site or limiting commercial signage or billboard usage. 

What Are the Conditions and Restrictions?

Conditions and Restrictions (C&Rs) define how a piece of land may be used or developed by outlining specific design or construction standards requirements. C&Rs can also protect against future disputes over boundary lines or other issues related to a development project. C&Rs should be drafted carefully because any changes made later on may require additional legal action. In shopping centers, conditions and restrictions may address issues such as commercial zoning and building regulations, parking requirements, signage restrictions, or other design considerations.

Contact Our Naperville, IL Real Estate Development Attorneys

When negotiating ECCRs for a shopping center development project, it is important to understand the different types of agreements involved and how they will impact the overall project. It is also crucial to carefully consider each party's rights and responsibilities in relation to the property and how these agreements may be changed over time. 

If you are planning a commercial real estate development project and need assistance negotiating ECCRs or other legal agreements, contact our team of experienced DuPage County, IL commercial real estate lawyers at Lindell & Tessitore, P.C.. We will work with you every step of the way to ensure that the rights and interests of all parties, including buyers, sellers, investors, developers, lenders, and tenants, will be protected. Call 630-778-3818 to set up a consultation today.

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