DEVELOPMENT AGREEMENT WITHOUT POSSESSION
Agreement is made and executed by and between:
(hereinafter for brevity and convenience referred to as the OWNER Owner/Party of the First Part which term st1all unless repugnant 'to the context, of meaning ,thereof be deemed to mean inclusively their heirs, successor-in-interest and title legal representatives. Executors, administrators, assigns on the FIRST PART)
1. _____________________________W/o Mr. _____________, Aged __ years,
R/o H. No. _____________________________.
2. Mr. _____________ S/o Mr. ______________, Aged __ years,
(hereinafter for brevity and convenience referred to, as the CONSENTING PARTIES which term shall unless repugnant to the context, of meaning thereof be deemed to mean inclusively their heirs, successor-in-interest and title, legal representatives, executors, administrators, assigns on the FIRST PART)
IN FAVOUR OF
A proprietorship firm represented by its Proprietor Mr. ________________ S/o ________________, resident of H.No.__________________________________________.
(Hereinafter called 'DEVELOPER'/Party of the Second Part which expression shall unless the context otherwise requires, mean and include its Partners, successors-in-interest, executors, representatives, administrators, nominees and assignees etc.)
WHEREAS the First Party is the absolute and exclusive owner and possessor of the house property bearing Municipal No.______________, situated at _____________Road, totally admeasuring ___________ (______) Sq.Yards hereinafter referred to as "Schedule Property" having acquired the title of the same under the following manner:
a) Registered Sale Deed No: ____ dated _____________in favour of Mr. _____________ for an area of __________ (_____) Square yards.
b) The Municipal permission was obtained for construction of the house.
c) The property is assessed in Municipal Records in the name of the OWNER.
d) The property is affected by road widening to an extent of _____Sq.yds, the owner has handed over the said area free of cost to the Municipal Corporation of Hyderabad.
AND WHEREAS the OWNER/parties of the First Party being desirous of developing commercial complex upon the Schedule Property.
AND WHEREAS the DEVELOPER is carrying on the business in Civil Constructions works, Commercial complex and residential complexes and such other incidental activities.
AND WHEREAS after careful deliberation the OWNER has agreed to permit the DEVELOPER to develop the Schedule Property by constructing thereon a commercial complex in accordance with the permission which may be sanctioned by the Municipal Corporation of Hyderabad and HUDA, subject to certain terms and conditions. The complex to be constructed hereinafter referred to as the "Proposed Complex", the name of which shall be decided by the OWNER, consists of commercial complex and partly residential apartments (provisional).
AND WHEREAS the CONSENTING PARTIES herein being wife, son and daughter of the OWNER herein are also joining this Development Agreement
AND WHEREAS it is agreed by both the parties, to reduce the terms and condition of this Development Agreement into writing:-
NOW THIS DEVELOPMENT AGREEMENT WITHNESSETH AS FOLLOWS:
1. The DEVELOPER shall prepare a comprehensive plan for the construction of the Proposed Complex to be constructed by it over Schedule Property and shall submit the plans along with necessary application forms and papers to the Municipal Authorities within two weeks of this Development Agreement and produce, the copy of the applications filed and fees paid, to the OWNER. If the DEVELOPER fails to obtain all the necessary sanctions within three months, with a grace period of another three months, then the OWNER reserves the rights to cancel/terminate/review/alter the terms or even revoke this Development Agreement.
2. The DEVELOPER shall bear al the expenses for preparation of the said plans and shall pay all the necessary fees to the municipal and other authorities for obtaining such sanctions and permits.
3. The OWNER shall have tile right to inspect the construction of the PROPOSED COMPLEX consisting of showrooms, office spaces, pent house, etc, more specifically the area earmarked to his share at all reasonable times of the day. But he shall not be entitled to interfere in the construction activity or obstruct the DEVELOPER in carrying on construction or taking any decision in respect of construction if the same is within conformity of the SPECIFITIONS is agreed hereunder.
4. The DEVELOPER shall be responsible to carry out the demolition and clearance of debris work of the existing building in the Schedule Property at his own expenses. The OWNER, alone is entitled for the value of the salvaged materials obtained for the value of the salvage material obtained by such demolition and the DEVELOPER shall not be entitled for any amount from the same.
5. The DEVELOPER shall take total responsibility for the construction of Proposed Complex as aforesaid and the OWNER shall not in any way be made responsible or liable for any defects in the construction of Proposed Complex.
6. The OWNER hereby assures and covenants with the DEVELOPER as follows:
(i) That the OWNER is the sole and absolute and exclusive OWNER of the Schedule Property and that there is no other person or persons having any manner of right, title, share, claims or interest in the Schedule Property.
(ii) That there are no prior agreements, attachments or disputes or any tax and/or revenue attachments or notice of requisitions from Government or Taxation or other authorities in respect of the Schedule Property or relating thereto.
(iii) That the OWNER has full and absolute right to enter into this agreement and the OWNER shall give possession of the Schedule Property on receipt of building permit and permission from Municipal Corporation of Hyderabad to the DEVELOPER to commence and complete the constructions as per the SPECIFICATIONS and time stipulation agreed hereunder.
7. (i) In consideration of the OWNER having granted irrevocable right to the DEVELOPER to develop the property, the DEVELOPER hereby agrees and covenants to give the OWNER by way of refundable deposit the following amounts mentioned hereunder:-
(ii) The DEVELOPER has paid to the OWNER a sum of Rs _________/- (Rupees _____________ only) towards interest free refundable Security Deposit as under:-
Cheque No: Amount Dated Owner
The cheque is drawn on __________ Bank, _______________Branch.
(iii) That after receiving the 50% share in the entire 100% constructed and completed area in the Proposed Complex (such area shall be earmarked in the plans upon approval of plans from Municipal Corporation of Hyderabad), the OWNER will refund and return the interest free refundable Security deposit of Rs._________ (Rupees ____________ only) and/or any other additional interest free refundable security deposit to the DEVELOPER, in lieu of this Development Agreement, paid by the DEVELOPER to the OWNER subsequently, after completion of the entire Proposed Complex in accordance with the SPECIFICATIONS and the time stipulations agreed.
(iv) The deliver of the 50% of the OWNER entitlement, in the entire 100% constructed and completed area in the Proposed Complex, and the refund of the interest free refundable deposit of RS _____________ (Rupees ____________ only) and/or any other interest free refundable deposit to the DEVELOPER by the OWNER, in lieu of this Development Agreement, paid by the DEVELOPER to the OWNER subsequently, shall be simultaneous. The OWNER shall issue receipt of delivery 01 possession and issue a cheque of Rs.____________(Rupees __________ only) and/or any other interest free refundable deposit paid by the DEVELOPER to the OWNER in favour of the DEVELOPER, encashable not later than thirty (30) days.
(v) The DEVELOPER has agreed to pay to the OWNER a sum of Rs _____ (Rupees ________________as per the Gregorian Calendar months, towards monthly rent, for the residence of the OWNER, effective from the date, 01st February 20xx.The DEVELOPER shall pay the above rental charges to the OWNER by way of post dated cheques for a term of 24 months beginning from the date above mentioned i.e. 01st February 20xx. The DEVELOPER shall hand over ail the 24 (twenty four) cheques to the OWNER on or before 01st January 20xx and obtain acknowledgement in writing from the OWNER for the same. The said charges are non-refundable to the DEVELOPER, except, out of the above referred 24 (twenty four) cheques, the OWNER will refund the amount of 6 (six) cheques issued by the DEVELOPER for the period of 3 (three) months allotted for obtaining the Municipal sanctions and for the period of 3 (three) months beyond 18 (eighteen) months, allotted as the grace period for completing the Proposed Complex if the DEVELOPER accomplishes the above two tasks in time. If the DEVELOPER fails to deliver the entire 50% of the constructed area to the OWNER within 18 (eighteen) months, as per the Gregorian Calendar months, of taking possession of the Schedule Property, then the DEVELOPER shall keep paying the sum of Rs.______/- to the OWNER towards monthly rent until the 50% share in the entire constructed area of the Proposed Complex is delivered to the OWNER.
(vi) The DEVELOPER shall construct with his own funds and deliver 50 % of the total super built-up area of the Proposed Complex proportionately, as specified in para-8 below, including but not limited to, shops, showrooms offices, total or partial residence on the 4th Floor (optional as per OWNERS decision), parking spaces, un-divided share of land including the common areas, balcony areas, circulation areas, etc. to the OWNER in lieu of the development rights granted to the DEVELOPER by the OWNER.
(vii) The remaining 50 % super built up area of the Proposed Complex which includes shops, showrooms, offices, parking spaces, un-divided share of land including common area, balcony area and circulation areas, as specified in para-8 below, shall be retained by the DEVELOPER. The DEVELOPER has right to alienate the above referred entitled area to the prospective purchasers during the construction of the Proposed Complex. III order to enable the DEVELOPER to sell the above referred 50% area to the purchasers, the OWNER will participate in such Agreements of Sale and present the title deeds if required by the purchaser. However Sale Deed will be executed and possession of the sold property in respect to the 50% of entitlement of the DEVELOPER'S share to his nominees all be given only after completion of the entire 100% super built up area of the Proposed Complex.
8. The OWNER and DEVELOPER hereby agreed to share the constructed area of the Proposed Complex in the following manner:-
(a) OWNERS Share: 50 %
(b) DEVELOPERS Share: 50 %
(c) That the OWNER/DEVELOPER herein agreed to demarcate on the plans their individual portions in the above percentage as follows and the actual construction to be taken up as per Architectural Plans.
OWNER PORTIONS DEVELOPER PORTIONS
CELLAR 50% of the Eastern Side 50% of the Western Side
GROUND/MEZZANINE 50% of the Eastern Side 50% of the Western Side
1st Floor 50% of the Eastern Side 50% of the Western Side
2nd Floor 50% of the Eastern Side 50% of the Western Side
3rd Floor 50% of the Eastern Side 50% of the Western Side
4th Floor 50% of the Eastern Side 50% of the Western Side
PENT HOUSE/TERRACE 50% of the Eastern Side 50% of the Western Side
Any extra cellar, floor or mezzanine built over and above from what indicated above or in the Municipal plan, by the DEVELOPER, whether by taking prior necessary legal permissions or otherwise, apart from the above defined and demarcated, will be shared in the same proportions, being 50% OWNERS share and 50% DEVELOPERS share.
(d) That the above portion shall be clearly described and delineated on the Plans, upon obtaining the Sanctions Plans from Municipal Corporation of Hyderabad and final Architectural drawing prepared by the consultant Architect.
(e) The OWNER shall have a right to decide the Architect of his choice in consultation with the DEVELOPER for the Proposed Complex.
9. The entire cost of the construction of the Proposed Complex, till it is completed and handed over to the respective parties and any other cost for any proceedings in relation to the proposed construction, shall be borne by the DEVELOPER only and the OWNER shall not be liable to any cost and consequences thereof in respect to the cost of constructions.
10. The OWNER hereby permits the DEVELOPER to secure customers for shops/showrooms/offices/parking spaces/un-d share etc and other spaces and to enter into Agreement of Sale with such Customers, collect advances, part/full sale consideration and to issue valid receipts to such purchasers of shops/showrooms/offices/parking spaces etc in respect of the 50 % of share as provided hereinabove in para-8 in the constructed area earmarked to the DEVELOPER. The DEVELOPER has absolute authority to sell and alienate his 50% share to the customer of his choice without any interference from the OWNER.
11. After completion of the said Proposed Complex, the DEVELOPER shall deliver the possession of 50 % of total super built up area including but not limited to, shops, showrooms offices, total or partial residence on the 4th Floor (optional as per OWNERS decision), parking spaces, un-divided share of land including the common areas, balcony areas, circulation areas, etc. in the same proportions, as specified hereinabove in Para-8, to the OWNER. Such area shall be signed by both the parties and earmarked on plan and the DEVELOPER shall obtain acknowledgement in writing from the OWNER. .
12. The DEVELOPER shall retain their share of 50 % super built up area along with parking spaces ;n the same proportions as per this Development Agreement and either during the construction or after the completion of the construction, the DEVELOPER shall be entitled to enter into Agreements of Sale and obtain advances, part/full sale consideration, from the prospective customers of the purchase of shops/showrooms and other spaces falling to the share of the DEVELOPER as stated hereinabove in Para-B. However Sale Deed will be executed and possession of the sold property in respect to the 50% of entitlement of the DEVELOPER'S share to his nominees shall be given only after completion of the entire 100% super built up area of the Proposed Complex.
13. The transaction hereby envisaged is grant of the right or permission for development of SCHEDULE PROPERTY with the intent that the OWNERS entitlement of the complex to be built shall be retained by the OWNER and the DEVELOPER'S entitlement shall be transferred to third parties of the DEVELOPER'S choice in accordance with the terms and conditions of this Agreement. The transaction shall be complete on1y on DEVELOPERS constructing and handing over possession of the OWNERS portion, complete, in all respects.
14. (a) The DEVELOPER shall complete the construction of the Proposed Complex within eighteen (18) months, as per the Gregorian Calendar months, from the date of handing over of the possession of the Schedule Property by the OWNER to the DEVELOPER and a further period of three (3) months has been agreed by both parties as grace period for completion of the Proposed Complex. The OWNER and DEVELOPER shall acknowledge the date of handing over and taking over the possession of the Schedule Property on the Supplementary Agreement in writing. If the DEVELOPER fails to complete the construction of the Proposed Complex within eighteen (1B) months, with the grace period of three (3) months, from the date of obtaining the possession of the Schedule Property from the OWNER, the DEVELOPER. shall compensate the OWNER by paying Rs 50/- (Rupees fifty only) per Sq. ft. per month for the entire 50% of the Ground Floor area, whether partially or wholly un-finished, incomplete or un-delivered, RS.25/- (Rupees twenty five only) per Sq. ft. per month for the entire 50% of the 1st,2nd,3rd and 4th floors, whether partially or wholly un-finished, incomplete or un-delivered and RS.5/ (Rupees five only) per Sq. ft. per month for the entire 50% of the Cellar/Cellars whether partially or wholly unfinished, incomplete, or un-delivered, entitled for the OWNER after twenty one (21) months from the date of handing over the possession of the Schedule Property to the DEVELOPER by the OWNER.
(b) In case the DEVELOPER delays the completion of the Proposed Complex beyond thirty six (36) months, as per the Gregorian Calendar months, from the date of handing over the Schedule Property to the DEVELOPER, then the interest free refundable security deposit of Rs.___________ and/or any other interest free refundable security deposit, in lieu of this Development Agreement, paid by the DEVELOPER to the OWNER subsequently, will stand forfeited and in case of delay of completion of the Proposed Complex beyond forty eight (48) months, as per the Gregorian Calendar months, from the date of OWNER handing over the Schedule Property to the DEVELOPER, then the construction will be assumed by the OWNER as abandoned by the DEVELOPER and the DEVELOPER will be liable to pay to the OWNER, excluding the interest free refundable security deposit, which stands forfeited after the thirty six (36) months delay, the cost of the whole property as per tile demand of the OWNER.
(c) In the same manner, if the delay caused due to non-availability of cement, steel, or other construction material or construction stops due to riots, natural calamities, strike, or/and any other' natural phenomenon or/and any act of God and/or any reason of force mature the period of which shall be excluded from the completion schedule and the penalty clause above shall not be enforceable. However, the DEVELOPER will be liable to produce sufficient and genuine proof, acceptable by any court of law, giving accurate dates of the non-availability of cement, steel or other construction material or accurate dates of riots, natural calamities, strike, or/and any other natural phenomenon or/and any act of God or/and any reason of force mature.
15. In case the DEVELOPER makes any further construction over and above the permitted floors, including the Pent House, Cellar and Mezzanine, by obtaining necessary permissions or otherwise as the DEVELOPER deem fit and propel, ,the OWNER and DEVELOPER are entitled for the same ratio i.e. 50% of the built up area to the OWNER and 50% of the built up area to the DEVELOPER in such additional construction including the Pent House, Cellar and Mezzanine as provided hereinabove in Para-8. However the OWNER will reserve the right for demarcation and selection of such further constructions over and above the permitted floors including Pent House, Cellar and Mezzanine. The cost of construction shall be paid and borne by the DEVELOPER only.
16. As agreed in clause 7(vii) above, the OWNER shall keep the title deeds of the Schedule Property and produce to the DEVELOPER and purchasers of the proposed complex as and when required.
17. The OWNER shall pay to the DEVELOPER, the amounts for electricity connection in proportion to their share or area in the proposed complex before obtaining possession of the same for the portions /offices etc., proposed to be sold to third parties by the OWNER. Such amounts shall be intimated by the DEVELOPER to the OWNER in advance. However, the OWNER shall not be liable to pay any such charges for the portions/offices etc, retained by the OWNER.
18 (a) The OWNER shall not be held responsible for any defects in construction of the Complex and the DEVELOPER shall alone be responsible for such defects and shall be answerable to the Third Parties and the OWNER. Such defects shall be intimated to the DEVELOPER within six months of completion of the Proposed Complex and the DEVELOPER will rectify such defects within three months of the intimation.
(b) The DEVELOPER shall alone be responsible to pay compensation or expenses or wages to any workman or other person in the employment of the DEVELOPER; which may become due during the contractual period of such workman or other person and the OWNER shall not be made liable for any such compensation or expenses or wages aforesaid,
19. The DEVELOPER shall construct the Proposed Complex, in accordance with the SPECIFICATIONS mentioned in this Development Agreement without making any compromise in the quality of construction.
20. The DEVELOPER herein agreed to provide all the infrastructure including the civil work etc. for a separate exclusive lift for the OWNER, apart from the regular common lifts, at the rear side of the Proposed Complex subject to Architect's approval. However, the cost of the separate exclusive LIFT shall be paid and borne by the OWNER only.
21. The Architect shall decide and approve the quality the materials to be used in accordance with the SPECIFICATIONS attached.
22. All expenses and costs of transfer of the portions allotted to the DEVELOPER including stamp and registration charges of such Sale Deeds shall be borne either by the DEVELOPER or their nominees.
23. The DEVELOPER shall not mortgage the Proposed Complex nor raise any loans on the basis of this Development Agreement and the Supplement Agreement if any.
24. The DEVELOPER shall present the final, computerized drawings of the ELEVATION to the OWNER and get the written approval of the OWNER before commencement of work.
25. Both the Parties hereby agree to enter into Supplementary Agreement in the event of such contingency existing for incorporation or clarification of necessary clauses of this Development Agreement or to meet the needs of the ·til'1)e, but-such Supplemental Agreement shall be in conformity with the spirit of this DevelopQ1-ellt Agreement. Both parties hereby further agree to enter into a Supplementary Agreement on receipt of the sanction plans from the Municipal Corporation of Hyderabad clearly demarcating the entitlement of OWNER'S portion of 50% and DEVELOPER'S Portions of 50% on the plans.
26. The OWNER shall be responsible for payment of all arrears of Property tax, electricity bills, water charges in respect of the Schedule Property till the date of handling over of vacant possession of Schedule Property. They shall pay these arrears before the commencement of the construction and if required, for getting an approval or sanction from the Municipal Corporation of Hyderabad.
27. The OWNER and the DEVELOPER herein agree that the income tax in respect to the development and the sales of the individual portions of the Schedule Property both parties shall bear and pay their taxes as per the Income Tax law in respect of their shares of the Proposed Complex.
28. In case, any party of this Development Agreement commits breach of any of the terms mentioned herein, the other party, who has not committed the breach of these terms, will provide a Notice to that party to rectify the default within three months of the receipt of the Notice. In case, the party which is suffering from the breach of contract fails to rectify the default within the Notice period, then, the other party shall have a right to terminate this Development Agreement or to enforce the same by due process of law and demand for compensation and damages occurred due to such default. However the compensation and damages shall be decided by the Arbitrator.
29. The OWNER is entitled to use and enjoy all the common amenities in the Complex along with other OWNERS of the shops/offices etc.
30. The DEVELOPER herein agrees to prominently name the Proposed Complex, "_____" repeat "_________ " as per the OWNERS choice, however, the DEVELOPERS shall have a choice of naming his portion according to his choice.
31. This Development Agreement will be registered at the Sub-Registrar office, and the cost of stamp duty and all other charges and expenses incidental to the execution and registration of this Development Agreement, will be borne by the DEVELOPER alone. The OWNER shall not be liable or responsible to pay the same.
32. Both the parties herein agreed that Mr. ____________& Mr. _________________ shall be the arbitrators for any dispute or clarification arising out from this Development Agreement and their joint decision shall be binding on both parties.
SCHEDULE OF PROPERTY
All that house property bearing Municipal No._______________________ situated at Raj Bhavan Road, totally admeasuring ________(_____) Sq. Yards (before the handing over of the land in road widening of the Raj Bhavan Road) along with the residential house standing thereon and bounded by:
IN Witnesses whereof, the OWNER and DEVELOPER along with CONSENTING PARTIES have signed this DEVELOPMENT AGREEMENT on this, the ___st day of ___________ in the presence of the following witnesses:
Attached to the Development Agreement dated ____________
1. STRUCTURE : RCC framed super structure.
2. EXTERNAL WALLS : 9" Brick wall in cement mortar.
3. INTERNAL WALLS : 4.5" Brick Wall in cement mortar.
4. INTERNAL FINISH : Plastering with Altek sponge finish emulsion OBD paint.
5. EXTERNAL FINISH : Cement Plaster with Apex / Ace paint.
6. PLASTERING : Sponge finish.
7. DOORS : Teak Wood Framed panelled doors and plywood painted shutters.
8. SHUTTERS : Mild steel rolling shutters in Ground Floor.
9. WINDOWS : Powder coated aluminium glazed sliding windows.
10. FLOORING : Shops/Offices: 2'0" X 2'0" vitrified tiles / granite Lobbies: 2'0" X 2'0" or larger granite cladding & granite flooring (anything except black granite).
11. STAIRCASE : Stair Case with wooden rail Treads and risers - combination of marble/granite with proper chamfering.
11. TOILETS : 2'0" x 2'0" glazed/marbles with Dado up to 7’0" height, Parry ware/ Nayser Fixture superior quality C.P. fittings. Good quality water proofing (must) - latest technology.
12. PANTRYS : Black Granite top platform with stainless steel sink, Dado up to 2'0" height in glazed tiles. Good quality water proofing (must) - latest technology.
13. ELECTRICAL FITTINGS: Anchor Roma modular switches.
14 WIRING : Finolex Cables Copper wiring / Aluminium and adequate power points.
15. POWER Ample power : (30 Amps 3 Phase for minimum 1000 sq. ft.)
16 LIFTS : Two, Johnsons lifts of latest technology with exterior and interior of stainless steel, 8 persons capacity each.
Architrave - designed with marble/granite
17. AIR-CONDITIONERS : Provisions for all offices and showrooms.
18. STAND BY-POWER : Cummins/Kirloskar/Caterpillar Silent Diesel Generator-Set for back up power of whole complex.
19. CELLAR/CELLARS : Water Proof, Dry and completely lit-up cellars with adequate power.
20. TERRACE : Water proof terrace for terrace garden for OWNER
21. ELEVATION : Modern elevation with structural glazing and composite aluminium subject to Architect's and OWNER'S approval.