Property Under Construction Clause Samples
The "Property Under Construction" clause defines the rights and obligations of parties when the subject property is not yet completed at the time of contract. It typically outlines the expected completion date, standards of construction, and procedures for addressing delays or changes in the building process. This clause ensures that both buyer and seller understand the timeline, quality expectations, and remedies available if construction milestones are not met, thereby reducing uncertainty and managing risk associated with unfinished properties.
Property Under Construction. Notwithstanding anything to the contrary in SECTION 19.1, if a Significant Casualty or a Significant Condemnation occurs with respect to any Construction Property prior to the commencement of the Lease Term applicable thereto, and if such Significant Casualty or Significant Condemnation did not result from the Lessee's (or Construction Agent's) actions or failure to act, then provided that no Construction Agency Agreement Event of Default has occurred and is continuing (i) the Lessee shall not be obligated to purchase such Property from the Lessor, (ii) the Lessor's obligation to make further Fundings with respect to such Property shall terminate, (iii) the Lessor shall be entitled to retain the proceeds of any award, compensation or insurance with respect thereto until it shall have received an amount equal to the Lease Balance for such Property plus all other amounts then due and payable hereunder with respect to such Property, (iv) the Lessee may, at its option, by notice given to the Lessor not more than thirty (30) days after the occurrence of such Significant Casualty or Significant Condemnation, purchase such Property from the Lessor on the next following Scheduled Payment Date, which purchase shall be made in accordance with and subject to the conditions of SECTION 22.1, except that the Lessee shall not be required to purchase all of the Leased Assets in connection with the purchase of such Property, and (v) unless the Lessee has exercised such purchase option, the Lessee shall promptly surrender such Property to the Lessor.
Property Under Construction. If a Property is under construction, the following insurance must be provided: 17.1 Builder's All-Risk/Course of Construction Completed Value Form in an amount equal to the replacement cost of rebuilding the structure(s) on such Property or the Loan amount, whichever is less. The policy shall also insure material used or to be used for construction of the improvement regardless of its location, whether on-site or off-site or while in transit. Replacement coverage means the cost to repair or replace the structure(s) on such Property at the time of loss or damage, without deduction for physical deterioration or depreciation. Earthquake coverage is not required. 17.2 Commercial General Liability addressed to and naming the Administrative Agent as additional insured from the Borrowers and Contractor or Owner/Builder covering all forms of liability risk including personal and advertising injury, bodily injury, property damage, contractual, independent contractors, completed operations, products liability, broad form property damage, premises and operations, explosion and underground hazard. Amount of Coverage: At least One Million Dollars ($1,000,000) combined single limit per occurrence / $2,000,000 general aggregate All forms of insurance must be satisfactory to the Administrative Agent and provide that the Insurer must give the Administrative Agent at least 30 days’ notice of any changes, cancellation or non-renewal. In addition, certain project types such as hotels/motels, office buildings, shopping centers and construction projects may require a higher excess/umbrella liability amount. All applicable forms and endorsements must be attached to the policy.
Property Under Construction. The Firm shall determine the percentage of completion and the appraisal value of property that is under construction or alteration as of October 1 preceding the implementation of the revaluation. The Firm shall determine the value of all added assessments as of October 1 preceding the implementation of the revaluation.
Property Under Construction. (a) Delivery of Evidence of Property Insurance, ▇▇▇▇▇ Form 27, 2003 version, with coverage listed for Course of Construction/Builder's Risk Completed Value Form for an “All Risk” form, excluding earthquake but including flood (if required, see below). The policy shall also cover all property used or to be used in or part of the construction wherever the property is located and while in transit.
(b) Delivery of an executed Certificate of Liability insurance, addressed to the Bank and naming the Bank as an additional insured with respect to Commercial General Liability Insurance from the Contractor or Owner/Builder for all forms of liability risk including personal and advertising injury, bodily injury, property damage, contractual, independent contractors, completed operations, products liability, broad form property damage, premises and operations, explosion and underground hazard. This insurance shall be for at least One Million Dollars ($l,000,000) combined single limit per occurrence subject to a $2,000,000 general aggregate limit and on forms satisfactory to the Bank and provide that the insurer must give the Bank at least 30 days notice of any changes, cancellation or non-renewal. In addition, certain project types such as hotels/motels, office buildings, shopping centers and construction projects may require a higher excess/umbrella liability amount. All applicable forms and endorsements must be attached to the policy.
(c) During construction, a minimum of 25% of soft cost coverage must be maintained, to cover such items as real estate property taxes and architecture, engineering or consulting fees.
(d) Workers Compensation insurance. During construction, Workers’ Compensation & Employer’s Liability coverage is required in the minimum amount of $1,000,000, the Bank should be named as a Certificate Holder on the policy.
Property Under Construction. You are insured for sudden and accidental loss to any building and contents at the situation during the course of:
Property Under Construction