Film Location Agreements Explained
A film location agreement contract is a legal document that serves as the basis for an agreement between the owner of real estate or structures and a film producer for the use of that property as a shooting location. Such a document is vital in the world of filmmaking because it allows a studio to guarantee the legal right to access, shoot and film a project at a specific location and for a specified period of time.
Arguably one of the most crucial elements of such an agreement is the terms by which contract execution will involve a legal release of liability. After this, the terms of the contract are determined by the parties and subject to negotiation . Some may involve a fee for property usage and usage of its amenities. Some may involve the provision of special services. Still others may involve allowances for filming and shooting in connection with the specified property.
Signature of a location agreement by a property owner and the consenting parties is an essential part of the filmmaking process. Legal compliance in California with such a contract is also important in order to ensure smooth operation during the shooting of the project, so the document may be bound to application with the Los Angeles Film Bureau, which oversees the regulation of filmmaking within the city of Los Angeles.
Components of a Film Location Agreement
From the perspective of a filmmaker, the film locations agreement should be co-created by both parties. A well-written film location agreement for a location manager identifies specific terms including the following four key areas:
- The allowed use of the property is typically set for a specific number of days per week that a filmmaker would be permitted to use the premises, as well as the time of access.
- In exchange for the right to use the property, the location manager receives compensation, often in the form of a location fee which is set and usually agreed to by both parties, based on elements such as the length of time spent at the location, the set size, and the size of the cast and crew working at the location.
- Additionally, film industry veterans will agree to a set dollar amount that provides for daily insurance coverage, otherwise known as "a rider" which is often provided by the location manager through the production company that hires them. Depending on the size of the production, location managers will have different approaches towards providing insurance to protect themselves and the property owner.
- Location agreements will address the return of property to its prior condition following filming. Filmmakers are held responsible for returning properties to their prior state although it is up to the property owner to identify the acceptable condition to which the premises was enjoyed prior to the filming. Based on the condition and state of the property, the property owner may charge additional fees for cleaning and/or repairs.
Notably, filmmakers are not permitted to use a given location without proper permission from the property owner. A filmmaker could be found liable for trespass if a location manager uses the property without written permission.
Location contracts/templates are not universal. In other words, the location agreement for USC’s "Pineapple Express" differs from the New Jersey location agreement for "M. Night Shyamalan’s ‘Signs’" because with both agreements, different terms were negotiated. Therefore, it is always best for filmmakers to work with a trusted location manager who is aware of the film industry, to avoid the predicament of a breach of contract claim arising from a video production or filmmaking project.
Film Location Agreement Legal Issues and Compliance
Filmmakers must keep in mind various legal considerations when drafting a location agreement. Foremost, any project that includes filming of exterior or interior of property will likely require permits of some form or another. Obtaining a permit involves applying for permission from the local police department, and possibly the local fire department. There are different filing requirements, fees, and lead times involved depending on the scale of the permit. The location manager will be well versed in the permit process to assure that the permitting process goes smoothly. The location manager should advise the producer on whether an application is needed, and lead the effort to apply in a timely manner. Not obtaining the proper permits can be very costly and can shut down a production in its tracks.
In addition to permits, zoning requirements can be an issue for a location shoot. Depending on local land use laws, some residential and commercial properties may not be zoned for filming activities. For instance, in Los Angeles, California, commercial filming activities are generally not allowed in residential areas. A location manager and/or attorney can check on zoning regulations that apply to a location before signing a contract.
Aside from permits and zoning regulations, filmmakers should also be aware of any local ordinances, constitutional rights, or historical pasts that could or may prevent a production from shooting in a particular area.
Negotiating Filming Terms with Property Owner
Negotiating the rates and rental terms should be done in writing via an exchange of draft agreements, so that all terms are clear. When a film producer contacts a property owner with a view to renting the property, the producer would often give them a sense of what use is to be made of it – whether wholly interior or solely exteriors or both. The producer would also indicate the expected number of shooting days. Based upon this information the property owner and the producer will now be able to agree a rental fee, and may well become involved in some discussion about whether this figure is market-rates for the type of property being rented when used as a location for filming etc.
Once the rental fee is agreed (or at the very least terms of settlement have been agreed), the property owner and the producer will want to look at the other terms that are to be incorporated into the Location Agreement. It is important to avoid any of the vanilla provisions that sometimes appear in leases. For example, buildings insurance is only required where the property owner is to leave any building open to the elements whilst the film shoot is taking place.
The location owner’s name and address for notices will need to be included, as well as the lead of the production team and the production accountant. In relation to timing for payments to be made – if the location owner requires the rental fee to be paid before the location shoot commences one should bear in mind the provisions of the Contract (Rights of Third Parties) Act 1999. This legislation means that unless the contract confers a ‘benefit’ on a third party, that third party is not able to sue for breach of contract (unless they are the original contracting party, or they are an assignee of that original contracting party).
The next point is to consider whether additional rights should be granted to the property owner. It is not often the case that a property owner will require any increase in rights for the period of the film shoot. It should not usually be necessary to give the property owner increased rights, and if such rights are to be granted then they should not be for longer than the shooting period as stipulated in the Location Agreement. This is to avoid any question that the increased rights could exist beyond the period of the film shoot.
The producer invariably has an insurance policy in place to cover its indemnity-liability. Dean & Newland are able to arrange such policies to cover both the producer and the location owner.
Common Filming Problems and Resolutions
Last minute cancellations by a location owner, unforeseen restrictions or limitations on the use of a location and disagreements over payment are all too common and can be a source of potential trouble for producers. The best antidote to problems is pre-planning to resolve difficulties before they occur. Though it is possible to fashion solutions in post-mortem negotiations, it is not very likely and most owners expect to be paid even in cases where they object to the use of a particular location. In addition, cost and goodwill are often at stake. Therefore, it is far better to attempt to think through various types of problems and resolve them in advance. Here are some suggestions: Last Minute Cancellation/Failure to Agree on Payment Terms – Plan A with Back-Up Options – As all good producers know, it always pays to have a Plan B and often you will need to put them into action. The canceling of an agreed-upon location can cause delays that may be rather serious to meeting the budget and schedule. It is extremely important not to put all your eggs in one basket. The Cancellation Issue – It is important to understand how cancellation can affect repayment of a deposit . In many circumstances, the location owner will not get paid for being canceled on because it is not anticipated or contemplated by either the owner or the producer at the time of the cancellation. But in other circumstances, it may be reasonable to seek an amount greater than the deposit back from a producer, if canceling the agreement prevents the owner from making other arrangements in time to recover some of the rental amount and mitigate the damages caused by the cancellation. Therefore, it is important for both parties to anticipate this requirement and set it out in contract. It is also important when a producer is being "aggressive" about negotiating a location that the owner not feel pressured…especially until the cancellation issue is resolved. Payment Issues – These often arise when the producer owes the owner a large sum of money as a result of added rental time, overtime, or some other cost that is within the responsibility of the producer. It is important for both of the parties to anticipate and discuss these issues prior to signing a deal because once the check is cut and given to the owner, it will stave further discussion about the additional charges.
Sample Film Location Agreement Contract Template
Many production companies have come to find that a sample location agreement template can assist in drafting a location agreement without forgetting a critical detail or adding in unnecessary clauses to the final film agreement. In doing so, a copy of a sample location agreement template can be found and downloaded at: (Insert URL) for modification.
Filmmakers should be familiar with the use of sample location agreement templates by downloading a sample agreement and properly modifying the provisions contained therein. This way, all relevant details are covered and the location agreement between the production company and the property owner is comprehensive.
Location Filming Success Tips
Once that all important film location agreement has been signed, the terms and conditions of the contract should be adhered to in order to avoid costly disputes and problems. This is especially so when dealing with someone’s private home or place of business. It is important when producing a film that these logistics are worked out well in advance. From a practical standpoint, shooting on location usually involves some sort of alteration of the home or business. In order to avoid unhappy and disapproving location owners (and possible lawsuits), it is best to try to accommodate them. For example – when filming in private homes, most owners want some part of their home draped or covered in order to protect the contents from the moving of film equipment and film personnel. So it is advisable for filmmakers to cover with the owner what and how certain things will be covered and protected. Also, the homeowner’s carpets, flooring, light fixtures, and fragile objects should be considered and protected during production . Business establishments, especially hotels and casinos have certain rules and guidelines for serving its guests and if you fail to follow those guidelines, you can be quickly escorted off their premises. An example would be how to get from the lobby to the set without disturbing the guests. And if you have an actor that needs to relax before filming, many businesses don’t allow that in their lobbies or any common areas. So if you are required to keep a certain level of privacy, it is best to discuss this with the owner before you get there. If you really need to use the lobby areas, most locations can find a way to secure the area. In fact, these issues are just a few of the many reasons to try and have at least one of the contract’s terms be a location visit prior to actual shooting. This will allow the producer and production staff to understand the location and the surroundings, and get a good sense of what is or isn’t possible.