This article introduces the items that are normally covered in an REA and why they are important to both the developer and retailer. It should be recognized that the REA can be a two-party agreement (i.e. between the developer and the large retailer) or a tripartite or multi-party agreement (i.e. between the developer and multiple retailers). In addition, it is possible that an REA is concluded between two or more property owners (nor any of them is a retailer) who wish to develop their respective properties jointly. This type of REA is less prevalent and would address some, but not all, issues such as an REA between a developer and a large retailer. The typical two-party REA between a developer and a retailer would solve the following problems. ♦ It must be clear that the entry and exit are intended only for the installation and maintenance of this pipeline. Do you want to allow access by any road? Specify which one can be used and which cannot be used.
It is recommended that the company remain, if possible, on the easement, rather than allowing the use of roads on the land. ♦ The complete and complete legal description of the landowner`s property must be clearly indicated by block, section, measure, wing and other identification – it should match any legal description registered by the Assessor/Collector County, the courts and the assessment area. If the pipe service crosses several sections of the terrain, each cross-section must be identified correctly and specifically. ♦ language allowing the recipient to change the size (increase the diameter), change the type of material, change the maximum permissible pressure (MAOP), with or without notice, is problematic and should trigger a red flag. The licensor (property owner) has the right to negotiate these terms. For example, if the fellow can change the size of the pipe, the easement must be dug up, the existing pipe must be removed, and the new high-diameter pipe must be erected. This leads to damage, requires access to construction machinery and carries a risk of breakage, explosion and fire. Often, an REA can be seen as a substitute for the rights and obligations typically set out in a lease agreement between a developer and a large retailer.
However, in most cases, the large retailer will not see them in the same way. The large retailer will view its ownership of part of the mall as greater rights and fewer obligations than if it had leased the property to the developer. For example, a large retailer may have the unilateral right to lease its property to another user after acquiring part of the mall, while a retailer, if renting the property, would most likely give the developer (lessor) the right to accept assignments or subleases. Finally, there is a third common service agreement, called servitude. This type of servitude is more liberal, as it does not require a written agreement and can be imposed by local legislation. An easement is necessarily created when a party is required to use another person`s property. For example, if a person has to use a neighbor`s entrance to access their home, this is inevitably considered an easement. ♦ A harmless agreement should be included.
It should be understood that as an owner, you are not responsible for injuries suffered by the fellow, his employees, subcontractors, etc. ♦ language of the form, “This agreement allows the company to enter and leave the property anywhere.” is problematic. It should be clear where access is allowed and where it is not. The first is servitude. This type of easement is an agreement between a landowner and a distribution company that allows the distribution company to operate power lines, water pipes or other types of distribution companies through real estate. . . .