Development Agreement with possession

 DEVELOPMENT AGREEMENT

This development agreement is made and executed at Hyderabad on this ___ day of __________, 20xx,  between

1. ____________s/o ________________aged about __ r/o ________________ Hyderabad, RR District, Occupation: Business
2. ____________s/o ________________aged about __ r/o ________________ Hyderabad, RR District, Occupation: Business

1. hereinafter collectively called the FIRST PARTY

and

Mr. ___________________________s/o Mr.______________________ aged about __  R/o __________________________Hyderabad, Occupation: Business hereinafter called the SECOND PARTY.

The expression of the terms FIRST PARTY and the SECOND PARTY, wherever they occur herein under shall mean and include their respective heirs, executors, administrators, successors, assign, etc.

Whereas the FIRST PARTY herein is the sole, absolute, lawful owner and peaceful possessor of land in Survey No 69 in two parts vide two separate sale deeds, admeasuring one plot of land admeasuring One Acre ten Guntas and another plot of land of One Acre five Guntas, which was registered as Document No. ............. dated ............and another Document No..................dated………...  at registrar office SRO______________ and also subsequent revenue mutation records, patta passbook, title by the revenue authorities, the property which more fully described in the schedule hereto and herein after for the sake of brevity referred to as “Scheduled Property/ Said Property”

AND WHEREAS the SECOND PARTY is a Developer of land and are having sufficient infrastructure and expertise in the field of construction multi-storeyed buildings and complexes.

 

AND WHEREAS the SECOND PARTY approached the FIRST PARTY with a proposal to develop the said property for construction of residential complex and assured the FIRST PARTY that they have requisite expertise and infrastructure for such development.    The FIRST PARTY agreed for the proposal and after due deliberations and discussions among the parties it is mutually agreed upon by and between the parties as under:

 

NOW THIS DEVELOPMENT AGREEMENT WITNESSED AS UNDER:

1. The SECOND PARTY hereby agreed to develop the property shown in the schedule given below into residential complex at their  own  expenses, responsibility and cost and the FIRST PARTY shall provide the documents mentioned in annexure 1 to this agreement.

1. The FIRST PARTY and SECOND PARTY shall share Builtup area, in the following proportion i.e. FIRST PARTY 50% and SECOND PARTY 50% and both the parties hereto have agreed to earmark their respective flats in the said proportion mentioned in annexure 2 to this agreement.

1. That the parties mutually decided the name of the proposed residential complex as:   “……………………………………………………………………………………”

1. The FIRST PARTY hereby declare that he is the only owner and in enjoyment of the property shown in the schedule given below. Except him no other person has any sort of rights, title, or interest whatsoever in nature in respect of the property entrusted for development.

1. The FIRST PARTY hereby declare that the property entrusted for development is clear and clean from all aspects and free from all types of encumbrances, such as mortgages disputes, loans, liens prior agreements of sales, development, court orders, attachments, litigations etc., if any found, the FIRST PARTY shall make good of the loss to the SECOND PARTYthat may be incurred in the said regard.

1. The FIRST PARTY hereby agreed and undertake not to sell, deal with, dispose of or alienate or otherwise enter into agreement in respect of the 50% share of property belonging to the SECOND PARTY with any person or persons or act in any manner inconsistent with or prejudicial to or in contravention of the agreement of the declaration made by the FIRST PARTY of this agreement.

 

1. The SECOND PARTY hereby also agreed and undertake not to sell, deal with, dispose of or alienate or otherwise enter into agreement in respect of the 50% share of property belonging to the FIRST PARTY with any person or persons or act in any manner inconsistent with or prejudicial to or in contravention of the agreement of the declaration made by the SECOND PARTY of this agreement.

1. The SECOND PARTY has a right to appoint architects, surveyors, engineers, contractors or other persons as may be necessary in connection with the development of the property shown in the schedule given below.

1. That the SECOND PARTY has agreed to pay a sum of Rs. 30,00,000/- (Rupees Thirty Lakhs only) as refundable security deposit for due performance of the terms of this agreement and successful completion of the project. The Developer has agreed to raise the superstructure on the land beneath the said property according to the building plans mutually agreed upon between the Owner and the Developers which may be sanctioned from the competent authority. 

1. The said security deposit is being paid now at the time of signing the Development Agreement in the following manner :

                               I.      Rs. 30,00,000/- (Rupees Thirty Lakhs only) vide Chq No._____ dated ________ drawn on _____Bank ______ Branch.

1. The FIRST PARTY hereby handed over the possession of the scheduled property to the SECOND PARTY (and) permitted the SECOND PARTY to develop property shown in the schedule given below at their own cost. 

1. The FIRST PARTY, his G.P.A. or his nominee/s are at liberty to make visit of the schedule property for inspection of the construction work during the course of the development work at all reasonable times without causing any hindrance or obstruction to the construction activities. The SECOND PARTY being in actual possession of the schedule property; by virtue of these presents shall be exclusively in charge of the entire construction of the proposed building project without any let or hindrance or interference by the FIRST PARTY or any others claimant through the FIRST PARTY.

1. The SECOND PARTY is authorized to negotiate for the sale, lease, transfer and gift etc., and also enter into agreements of sale with any intending purchasers in respect of their 50% share of total Builtup area along with undivided share of land, terrace and terrace rights, garages, common areas, servant toilets, servant quarters, etc. and further the owner has given GPA in favour of the SECOND PARTY or their nominee in respect of their 50% of total Builtup area allotted to them. The SECOND PARTY shall complete the developmental work with their own costs and expenses in respect of 50% of the total Builtup area allotted to the FIRST PARTY towards his share.

 

1. That the SECOND PARTY shall invest its own funds for obtaining the building permission from local authorities for construction of the residential complex and the FIRST PARTY is not liable or responsible in any way for the acts of the SECOND PARTY.   

 

1. While constructing the complex the SECOND PARTY shall adhere to the following specifications mentioned in the annexure - 3 to this agreement.

1. It is hereby agreed that any claims arising out of the accident to the workers or any other mishap related to the construction work at the site during the course of development activities by the SECOND PARTY should be settled by the SECOND PARTY alone and the FIRST PARTY is no way responsible for the same and to pay any manner for such claims.

1. The SECOND PARTY shall develop the land in the schedule mentioned property in accordance with the plans/ revised plans sanctioned by the authorities concerned and shall not deviate from them in any manner subject to such variations as are beneficial and permissible and while making changes with reference to allocation of spaces for various uses including landscaped areas, open spaces and the FIRST PARTY shall co-operate with the SECOND PARTY for the said purpose.

1. The SECOND PARTY shall be entitled to obtain advances against the sale of their share of flats while development is in progress and receive considerations from the purchasers and they can enter into sale agreements and sell the same absolutely.

1. The FIRST PARTY shall not be liable to any third parties for any amounts received by the SECOND PARTY from the third parties as advances in respect of their share of flats and the SECOND PARTY shall be solely responsible for said amounts.

1. The stamp duty and /or registration charges and other expenses in respect of GPA in favour of the SECOND PARTY or their prospective purchasers as the case may be and the tax pertaining to the SECOND PARTY share shall be entirely borne by the SECOND PARTY.

1. The FIRST PARTY shall sign all such documents that may be necessary for the SECOND PARTY to create third parties interest in respect of the flats allotted to the SECOND PARTY.

1. Both the Parties shall not create any mortgages, charges or any other encumbrances over the schedule property. However, Both the Parties and their  prospective purchasers, tenants, users of the flats are entitled to obtain any loans from the financial institutions in respect of the built up areas to be allocated to the respective Parties and either  party is not liable or responsible in any way for the acts of the other party.

1. Any escalation of the cost of development or labour charges due to inflation shall be borne by the SECOND PARTY and the FIRST PARTY shall in no way be liable for the same.

1. It is expressly agreed upon that the SECOND PARTY shall convey flats developed by them along with the proportionate interest in land to third parties either together or separately pertaining to the flats allotted to them and the SECOND PARTY do not have any right or interest to deal with the flats reserved for the FIRST PARTY.

1. The FIRST PARTY shall not put forth any independent or exclusive claims rights of title over the land on which flats are to be developed and it is hereby specifically agreed and declared that the land over which the flats are developed shall be held by all the owners of the respective flats together with the amenities and facilities such as drainage light, water etc.

1. The owners shall become members of the owners association which shall be formed for the purpose of proper and effective enjoyments of the flats and the easements that are necessary for the enjoyment of the said flats and for the purpose of community living with the owners of flats. The owners hereby agree that they will be bounded by rules of the owner association. It is further agreed that this condition and covenant shall run with the schedule property.

1. The common facilities and services like roads, common parking area, drainage, water supply, electricity and other properties for the common enjoyment in the residential Complex shall rest jointly in the owners of the various flats. The maintenance expenditure which shall mean and include the repairs and replacements of the common areas and facilities like water, drainage, electricity, bore-wells, tanks, pumps, sumps, and for the general up keep for the complex shall be borne by the owners/ confirming parties also with the other owners of the flats in the residential complex, through the owners association.

1. The FIRST PARTY shall furnish originals of title and link documents and other relevant papers to the SECOND PARTY relating to the property shown in the schedule given below as and when required.   But it will be remained with the FIRST PARTY.

The SECOND PARTY shall hereby undertake to execute and hand over the FIRST PARTY’s share of flats along with necessary infrastructure, common amenities and facilities within a period of 36 months with a grace period of three months from the date of approval of building sanction plan

 

1. It is agreed that the parties to this agreement shall be bound by all the terms herein contained. If any of the parties to this agreement commit breach of the terms herein contained, then such other party as the case may be entitled to impose specifically the terms of this contract and claim damages in respect of the loss sustained from the party committing the breach.

1. That the FIRST PARTY and SECOND PARTY shall be entitled to deal with and to enter into agreements with regards to their built up areas to be allocated to them.

1. In the event of any dispute arising between the parties in interpretation of any terms there of or the implementation of this agreement or any matter arising from the same, the same shall be referred to arbitration of an arbitrator mutually agreed upon. 

SCHEDULE OF PROPERTY

 

 

All that land admeasuring about Acres ______Guntas out of Acres ________Guntas, in Survey No:____(Part) at, , _____ Mandal, Ranga Reddy District, and bounded as follows:

EAST .....          feet Road.                        

WEST .....       land belonging to 

SOUTH ....      30 feet Road . '                        

NORTH ....     neighbours land

IN witness whereof, both the parties have put their respective signature with their free will and consent after understanding above said contents in the presence of the following witnesses.

WITNESSES:                                                             FIRST PARTY

1.

2.                                                                                 SECOND PARTY