Development Agreement of Immovable Property
THIS AGREEMENT FOR DEVELOPMENT made at _________ this ________ day of
______________ in the Christian Year Two Thousand ______ BETWEEN XYZ of _________,
Indian Inhabitant having address at _____________________________________,
hereinafter called “THE OWNER” (which expression shall unless repugnant to the context
or meaning thereof be deemed to include his heirs, executors and administrators) of the
One Part; and M/S. ABC & CO.,
a registered partnership firm having its office at _____________________
__________________________________________________ , hereinafter called “THE
DEVELOPERS” (which expression shall unless repugnant to the context or meaning thereof
mean and include the partners or partner for the time being of the firm, the survivors or
survivor of them and the heirs, executors and administrators of the last surviving partner
and their his or her assigns) of the Other Part;
WHEREAS:—
(a) The Owner is seized and possessed of or otherwise well and sufficiently entitled to
the pieces or parcels of land or ground of land revenue tenure situate lying and
being at ___________________________________________ containing by
admeasurements ___________ sq.yards equivalent to _________ square meter or
thereabouts bearing Survey No. _________ Hissa No. ___________ together with
structures standing thereof known as “AAVISHKAR NIWAS” and more
particularly described in the Schedule hereunder written and delineated on the plan
thereof hereto annexed and thereon shown surrounded by red colored boundary
line (hereinafter called “the said property”).
(b) The said property consists of ground floor plus two upper floors of which the
second floor is in possession of the Owner and the ground floor and first floor are
in possession of the tenants, a list of which is annexed hereto as Annexure “A”. The
area of the ground floor premises is 1229 sq.ft. of carpet area and the area of the
first floor and second floor premises is 1553 sq.ft. of carpet area each.
(c) The Owner is desirous of developing the said property and has approached the
Developers for the same. The Owner has agreed to permit the Developers to
develop the said property on the terms and conditions recorded hereinafter.
(d) The parties hereto are desirous of recording the said terms and conditions in the
manner hereinafter appearing.
NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY MUTUALLY AGREED BY AND
BETWEEN THE PARTIES HERETO as follows:—
1. The Owner hereby permits the Developers and the Developers shall develop at
their own costs, efforts and expenses “the said property” more particularly
described in the Schedule hereunder written. For development of the said property,
the Developers shall be entitled to apply for and obtain necessary sanctions and
necessary permissions from all the concerned authorities for commencement and
completion of the construction on the said premises; to arrive at necessary
understandings or agreements with the tenants/occupants of the said property and
obtain possession of the premises from them; to obtain possession of the portion
of the property occupied by the owner; to demolish the existing building and to
construct and complete the construction work; to construct flats, offices, garages,
shops, stilt parking etc; to acquire Transfer of development rights as per DC Rules
and other relevant rules as may be applicable and to use and consume the same
by putting up constructions; to sale the newly constructed premises to third parties
and receive consideration thereof and to do all other acts and deeds required for
complete and proper development of the said property. All the increased, additional
and further FSI, other benefits directly and/or indirectly attached to the said
property and TDR available and/or made available in respect of the said property
shall belong to the Developers and shall be used by the Developers for their benefit
without payment of any further consideration to the owner.
2. In consideration of the Owner permitting the Developers to develop the said
property, the Developers shall pay to the Owner in all a sum of Rs.
_________________/- (Rupees ____________________ only) in the following
manner:—
(a) Rs. ____________/- (Rupees ________________ only) as and by way of
earnest money or deposit shall be paid on or before the execution of these
presents (the payment and receipt whereof the Owner doth hereby admit and
acknowledge);
(b) Rs. ____________/- within 30 days from the date (i) on Owner making out
free and marketable title to the said property; (ii) on the Developers entering
into an agreement with the present occupants/tenants of the building for
providing alternate accommodation to them as also their handing over physical
possession of the property in their occupation to the Developers; (iii) on the
Owner handing over vacant possession of the second floor of the said building
in his occupation to the Developers for its development as provided hereinafter
and (iv) on receipt of IOD from Municipal Corporation; whichever event is
later.
(c) Rs. _____________/- (Rupees ___________________ only) to be paid in
equal installments of Rs. ________________each payable every two months
after the installment in Sub-Clause (b) becoming due. Out of this amount a
sum of
Rs. __________/- (Rupees ____________________ only) to be adjusted
against the allotment of a flat to the owner by the Developers as mentioned in
Clause 3 hereunder written; and
(d) The balance Rs. ___________/- shall be paid against execution of Deed of
Conveyance as provided hereinafter.
3. On completion of the construction of the building on the said property, the
Developers shall as part of the consideration allot and handover to the Owner on
what is commonly known as ownership basis a tenement/flat therein of
admeasuring 1200 sq.ft. of carpet area on the third floor of the proposed new
building and which flat is mutually valued at concessional amount of Rs.
____________/- (Rupees _____________________ only) and which is forming
the part of the total consideration of Rs. _________________/- (Rupees
________________________ only) and which amount is to be adjusted out of the
said total consideration payable as provided in clauses 2(c) above.
4. The Owner and the Developers shall jointly get the said property surveyed and
ascertain the exact area of the said property. The Developers shall after the work
of joint survey is complete construct at their own costs a boundary wall
surrounding the said property. If at the time of construction of the said boundary
wall, any objection or obstruction is received by the Developers then in that event,
the Developers shall forthwith bring the same to the notice of the Owner and the
Owner shall at his own costs remove such obstruction
or objection.
5. The Developers shall for and on behalf of the Owner and in the name of the Owner
be entitled to submit to the Municipal Corporation and all other concerned
authorities plans for getting the said property developed. The Developers shall at
their own cost get the said plans sanctioned by the concerned authorities. The
Developers shall also at all times be entitled to alter and modify the building plans
as they may desire and as permitted in accordance with the rules. The Developers
shall at their cost be entitled to appoint Architects, Contractors, Engineers,
Supervisors, and Labors etc. for development of the said property.
6. The Developers have agreed to develop the said premises as aforesaid free from all
encumbrances and reasonable doubts of whatsoever nature and with the free, clear
and marketable title but subject to the existing occupants/tenants on the ground
and first floor premises of the said property. The Developers shall after demolishing
the existing structure be fully entitled to acquire TDR (Transfer of Development
Rights) and use/consume the same on the said property by putting further and
additional construction/structure.
7. The Owner hereby declares and confirms as under:—
(a) The Owner is otherwise well and sufficiently entitled to the said property
described in the schedule hereunder written. His title to the said property is
free and marketable subject to rights of existing occupants
as fore stated.
(b) No other person except the Owner has any right, claim or demand in respect
of the said property or any part thereof;
(c) The Owner has not created any sale, gift, mortgage, charge, lien, lease or any
other adverse right or any other encumbrance whatsoever or howsoever on
the said property and the said property is not subject to any claim or demand,
encumbrance, attachment or any process issued by any Court or Authority and
the Owner hereby declares that he shall hereafter not create any third party
rights of whatsoever nature in respect of the said property including any
change in the existing tenancies or any
of them.
(d) The Owner has not entered into any agreement or arrangement, oral or
written with regard to the sale of the said property.
(e) There are no proceedings instituted by or against the Owner in respect of the
said property and pending in any Court or before any authority and the said
property is not under any lispendens;
(f) No Notice from any Government, Municipal Corporation or any other public
Body or authority or any notice under any law including the Land Acquisition
Act, the Land Requisition Act, the Town Planning Act, the Municipal Corporation
Act, and Urban Land Ceiling Act, or any other statute has been received or
served upon the Owner in respect of the said property or any part thereof
which restricts or may restrict the development of the said property; and
(g) The said property is not under any reservation and there are no restrictions on
development thereof.
8. The Owner shall within a period of seven days from the date of the execution of
this Agreement, hand over to the Developers’ Advocates and Solicitors all original
documents and title deeds relating to the said property for enabling the
Developers’ Advocates and Solicitors to investigate the Owner’s title to the said
property. The Developers shall administer requisitions to the Owner within a period
of two months from the date of receipt of such original documents and title deeds
and if within the said period of two months no requisitions are received by the
Owner, the Owner shall presume that the Developers have accepted the Owner’s
title to the said property and the Developers shall not be entitled to administer any
requisition on title of the Owner.
9. The Owner shall make out free and marketable title to the said property free from
all reasonable doubts and encumbrances. The Owner shall also furnish copies of all
title deeds of the said property to the Developers.
10. The Developers shall at their own cost and efforts be fully entitled to negotiate and
finalise all the terms and conditions with the said tenants/occupants for smooth
development of the said property as they in their absolute discretion think proper.
11. The Developers shall complete the construction work of the said building within a
period of two years after the receipt of requisite commencement Certificate from
the Mumbai Municipal Corporation.
12. The Owner shall at the request and demand of the Developers make and execute a
proper Deed of Conveyance and all other necessary documents and papers to
complete the title agreed to be given in respect of the said property and such
Conveyance shall be in favor of the Developers or their nominee or nominees
including a Co-operative Housing Society, Limited Company or condominium. The
Developers shall be entitled to all monuments of title relating to the said property
which will be handed over to the ultimate Purchasers.
13. Simultaneously upon the Developers making payment in terms of 2(b) above, the
Owner shall put the Developers in possession of the said property for its
development including in vacant possession of the said second floor presently in
occupation of the Owner.
14. The Owner shall simultaneously on receipt of payment in terms of Clause 2(b)
above, also execute a proper Power of Attorney in favor of the Developers and/or
their nominee or nominees in respect of the said property for its development,
authorizing them to do all lawful acts, deeds, matters and things pertaining to the
development of the said property and for the said purpose to approach the
authorities including the Municipal Corporation of Greater Mumbai and the
authorities appointed under the said Act, or any other law and for doing all acts,
deeds, matters and things to be done or incurred by the Developer in that behalf
as also to sign all letters, applications, agreements, documents, court proceedings,
affidavits and such other papers containing true facts and correct particulars as
may from time to time be required in this behalf. The Developers hereby agree and
undertake to execute and cause the persons in whose favor the Owner shall
execute a Power of Attorney as aforesaid a proper Deed of Indemnity in such form
as may be required by the Owner thereby indemnifying the Owner and all persons
claiming under him and his respective estate and effects, of from and against all
actions, suits, proceedings, claims, demands, costs charges and expenses that may
be taken or made by any one claiming under him or that the Owner or any one
claiming under him and may be liable to pay suffer or incur on account of anything
done or caused or committed or omitted to be done by the Developers or the
person in whose favour a Power of Attorney hereby contemplated is executed by
the Owner and that the said Indemnity shall continue to remain in full force and
effect throughout for anything done or caused or committed to be done by the
Developers or such persons the Power of Attorney is executed during the tenure of
the said Power of Attorney.
15. The entire development work shall be carried out by the Developers at their own
risk, costs and expenses. They shall bear and pay the Bills of the suppliers of
building materials, wages and salaries payable to the workmen and other persons
employed for the purpose of carrying out the constructions work as also all other
costs, charges and expenses that may be incurred in regard to the development
work. The Developers shall also save harmless and indemnify and keep indemnified
the Owner against any claim that may be made by any one against the Owner on
account of the Developers carrying out the said development work. The Developers
shall specifically ensure that the workmen employed for the purpose of carrying out
the development work are insured under the workmen’s compensation Act.
16. The Developers shall upon payment in terms of Clause 2(b) above be entitled to
proceed with the development of the said property and commence construction on
the said property and also to allot on ownership basis the premises in the buildings
or structures to be constructed by the Developers on the said property or in any
part of the said property to the prospective purchasers and for that purpose to
enter into in their own name agreements or letters of allotment or such other
writings or documents for sale of Flats/Shops/Garages etc. in the said property and
to receive and retain with them all the moneys from the persons to whom the said
premises are sold or allotted and to appropriate the same in such manner as the
Developers may deem fit. All the moneys which shall be received by the
Developers from such persons shall belong to the Developers and will be received
by them on their own account. The Owner shall also not be liable or responsible to
any such persons so far as the said moneys are concerned either for refund thereof
or for any mis-application or non-application thereof or part thereof. This provision
shall be specifically brought to the notice of all such purchasers, tenants, lessees,
licensees etc. in the agreements or letters of allotments entered into or passed to
them.
17. The Developers will be entitled to modify the approved buildings plans as they
deem fit provided the modifications are within or as per the provisions of approved
scheme laid down by the Competent Authority. The Developers shall pay all the
fees of the Architects, and R.C.C. Consultants appointed by them for the
development of this project. It is agreed that while appointing Architect and R.C.C.
Consultants the Developers shall procure in favour of the Owner writing that they
shall not look to the Owner for their fees or otherwise.
18. The Developers shall in the course of erection and completion of the said buildings
do all lawful acts and things required by and perform the works in conformity in all
respects with the provisions of the statues applicable thereto.
19. The Developers shall not at any time cause or permit any public or private nuisance
in or upon the said property or do anything which shall cause unnecessary
annoyance, inconveniences suffering hardship or disturbance to the Owner or to
the occupants of the neighboring properties.
20. The Developers shall be entitled to form and register a
co-operative Society/Association of persons and/or a limited company of all the
purchasers of various premises in the newly constructed building and shall also
admit/accept the owner as member/shareholder of the same.
21. The Owner shall pay all outgoings in respect of the said property till the date of
demolition of the existing old building and thereafter the same shall be paid by the
Developers.
22. The stamp duty and registration charges, if any, in respect hereof shall be borne
and paid by the Developers.
THE SCHEDULE ABVOE REFERRED TO:
(Give detailed description of the land and the building)
SIGNED AND DELIVERED BY THE )
Within Named OWNER XYZ, )
in the presence of )
SIGNED AND DELIVERED by the )
Within Named DEVELOPERS )
M/s. ABC & CO. a partnership firm by the hand of )
its’ Partner ABC in the presence of ............., )
1.
2.
RECEIPT
RECEIVED the day and year first herein above written of and from the within Named
Developers the sum of Rs. ____________/- (Rupees _________________ only) by cheque
No.__________ dated __________ drawn on _______________________ being the
agreed amount to be paid by them to me as within mentioned.
Rs. ___________/-
I SAY RECEIVED
WITNESSES:
1. OWNER
2.
