“What is development fee and why must I pay it”

We've had many clients ask us this question over the years. After paying a large sum of money for a plot of land, clients are often hesitant to pay extra for development.

Some Clients simply refuse to pay the development fee because they believe it to be another avenue for the real estate developer to profit.

However, this is a wrong perception. So what is Development Fee?

The development fee is the fee a real estate developer takes to oversee the estate development project's entirety, from pre-construction (e.g., the design and entitlement processes).

Why is development fee important and what is it used to do?

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