Site control: Overview, definition, and example
What is site control?
Site control refers to the legal authority or permission to occupy, develop, or use a specific parcel of land or property. This control can be held by the landowner, a lessee, a developer, or any other entity that has the rights to use the land for a particular purpose. Site control ensures that the party in control of the property has the legal right to access, modify, or use the land for the intended activities, such as construction, business operations, or resource extraction.
Site control is crucial in many contexts, including real estate development, construction projects, and environmental management. It is often a prerequisite for obtaining permits, zoning approvals, and financing, as stakeholders need assurance that the project can be legally executed on the site in question.
Why is site control important?
Site control is important because it provides the legal foundation for any activities or development on the land. Without proper site control, a developer or business could face legal challenges, including disputes over property ownership, unauthorized use, or violations of zoning laws.
For real estate developers, securing site control is often the first step before starting a project, as it allows them to secure financing, obtain necessary permits, and ensure that the project can proceed without legal complications. Similarly, businesses that operate on leased or owned land need to maintain site control to ensure uninterrupted operations and compliance with local laws.
Site control also provides clarity for investors, contractors, and regulatory bodies, who need to confirm that the land or property is legally available for the intended use.
Understanding site control through an example
Imagine a company plans to build a shopping center in a city. Before construction can begin, the company must secure site control over the land where the shopping center will be built. The company can achieve site control through:
- Land ownership: The company buys the land, gaining full site control to develop the shopping center.
- Lease agreement: The company leases the land from the landowner for a specified period, obtaining site control to use the land for construction and operation of the shopping center.
- Option agreement: The company enters into an agreement with the landowner giving them the right to purchase or lease the land in the future, typically after securing financing or permits.
Once the company secures site control, it can move forward with obtaining the necessary building permits, environmental approvals, and financing to start construction. Without site control, the company would face significant obstacles in proceeding with the development.
Example of site control clause
Here’s an example of how a site control clause might appear in a real estate development agreement:
"The Developer shall provide evidence of site control over the Property prior to the commencement of any construction activities. Site control may be established through ownership, lease, or an option agreement with the landowner. The Developer agrees to secure all necessary permits and approvals for the project and ensure that the Property remains under the Developer’s control for the duration of the construction and operational phases."
Conclusion
Site control is a fundamental concept in real estate development, construction, and business operations. It ensures that a party has the legal right to use or develop a specific piece of land for its intended purpose. Securing site control is often the first critical step in the development process, as it provides the legal foundation needed for obtaining permits, financing, and executing a project successfully. Whether through ownership, leasing, or options, maintaining site control ensures that a business or developer can proceed with their plans without facing legal barriers related to land use. Understanding site control is essential for navigating real estate transactions and development projects effectively.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.