Shown below are the rough and general drafts of
documentations. These may be got verified from legal experts before signing as
AAkarashna Realtors Inc. will not be responsible for any inaccuracies and
deficiencies in these. (M) 09891088944, 9818512450
Email: investments@aakarshna.com,
Website: http://www.aakarshna.com
DEVELOPMENT AGREEMENT
ARTICLES
OF AGREEMENT made at _______________(city) this _____ day of __________, 20__
between (1) ____________ and (2) _________________ both of (city) Inhabitants
hereinafter called "the Owners" (which expression shall unless it be
repugnant to the context or meaning thereof, be deemed to include their
respective heirs, executors and administrators) of the One Part and
_______________________ of _______________(city) Indian Inhabitant carrying on
business at _____________________________ hereinafter called "the
Developer" (which expression shall, unless it be repugnant to the context
or meaning thereon be deemed to include his heirs, executors, administrators
and assigns) of the Other Part:
Whereas the Owners are absolutely seized and
possessed of or otherwise well and sufficiently entitled to all those pieces or
parcels of land or ground situate lying and being at _______________(city)
admeasuring _____ square metres or thereabouts and
more particularly described in the Schedule hereunder written (hereinafter for
the sake of brevity referred to as "the said property");
Andwhereas the said property is vacant save and except a portion thereof
which is presently occupied and encroached upon by some unauthorised
occupants or trespassers who have constructed some unauthorised
structures/huts thereon and of which fact the Developer is aware, he having
inspected the said property prior to the execution of these presents;
Andwhereas The Owners have represented to the Developer that a portion of
the said property is under reservation under the sanctioned development plan
and another portion of the said property is reserved under the draft
Development plan and of which fact the Developer is fully aware;
Andwhereas All of the said property has been declared to the surplus vacant
land by the Competent Authority under the provisions of the
Andwhereas The Owners have agreed to grant to the
Developer and the Developer has agreed to accept from the Owners exclusive
rights of development of the said property upon the terms and subject to the
conditions herein recorded.
NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO as follows:
1.
The
Owners hereby grant exclusive right to the Developers of development of the
said property on what is known as "as is where is basis" and the
Developer accepts the same for the consideration and subject to the terms and
conditions herein provided.
2.
It is
specifically agreed that the Owners shall through the Developers' Architects
submit plans for sanctioning of lay out for construction of buildings and/or
other structures on the said property or any part or portion thereof.
3.
The
said plans shall be prepared by the Architects of the Developer and at the
costs of the Developer and the Owners shall submit only such plans as are
prepared by the Developer through their Architects and copy of the finally
approved plan shall be given to the Owners.
4.
Soon
after the execution of this agreement, if so required, the Owners shall execute
a Power of Attorney in favour of the Developer or any
other person nominated by the Developer to approach all public authorities and
to submit and obtain sanction of plans of lay-out and the buildings and
structure/s to be constructed on the said property or any portion thereof from
the Municipal Corporation of Greater Bombay and all other concerned authorities.
5.
The
Developer is aware that certain portions of the said property are under
reservation under the sanctioned development plan. It is agreed that the Owners
shall under no circumstances be liable to remove the said reservations nor
shall the Developer be entitled to any reduction in the consideration payable
hereunder on account of the said reservations. However, the Owner shall sign
all applications, papers, writings, etc. as may be required by the Developer
the purpose of removing such reservations.
6.
In
consideration of the Owners granting exclusive rights of development to the
Developer under this Agreement, the Developer shall pay to the Owners a minimum
consideration of Rs. ____________/- (Rupees
________________ ______________________ only) (hereinafter called "the
minimum consideration") or an amount calculated at the rate of Rs.50/- per
square foot of the F.S.I. which may be sanctioned by the Municipal Corporation
of Greater Bombay, whichever is higher and the said total consideration amount
shall be paid in the manner following:
a.
Rs.
____________/- (Rupees ______________________ ____________ only) on the
execution hereof being the earnest money or deposit (receipt of which sum the
Owners do hereby admit and acknowledge).
b. Rs. ____________/- (Rupees
_____________________ _____________ only) being the balance consideration which
shall be paid by the Developer to the Owners on the compliance of the
following:
iii.
The
Owners making out the marketable title to the said property free from all
encumbrances and reasonable doubts.
iv.
The
Appropriate Authority issuing its NOC under Section 269 UL(3)
of the Income-tax Act, 1961.
v.
The
Owners handing over complete vacant possession of the said property to the
Developers under an irrevocable license.
vi.
Developer
the owners giving irrevocable right to construct buildings on their own account
and with right to sell the units in the said building/s to the prospective
purchasers, on ownership basis or otherwise and to appropriate the Sale
Proceeds to themselves although formal possession of the property shall be
handed over to the Developer on execution of the Conveyance.
· Notwithstanding anything
contained in the preceding clause it is specifically agreed by and between the
parties hereto that after execution hereof the Developer shall be entitled to
put up fencing around the said property or any portion or portions thereof, for
the purposes of preventing further encroachments but subject to the existing
encroachments, and shall also be entitled to put up fencing around the portions
of the property in occupation of the unauthorised
occupation as hereinabove provided. The Developer shall also make arrangements
for guarding the said property and preventing any further encumbrance or
encroachment by trespassers or unauthorised persons
upon the said property or any part or portions thereof. All costs, charges and
expenses in respect of the above shall be borne and paid by the Developer
alone. The Owners shall not be liable to remove and/or vacate the encroachments
or unauthorised occupants who are already occupying
portions of the said property nor shall they be liable in respect of any
further encroachment or unauthorised occupation on
the said property.
· As from the date hereof,
the Developer shall be solely entitled at his own risk to deal and/or negotiate
with the unauthorised occupants and/or trespassers on
the said property and to take any proceedings against them and/or to arrive at
any arrangement or agreement with them at the costs, charges and expenses of
the Developer alone. However, the Owners shall empower and authorise
the Developer and/or his nominees under the Power of Attorney to be executed as
aforesaid to effectively deal and/or negotiate with the trespassers or unauthorised occupants and to receive the possession of the
respective area occupied by such trespassers or unauthorised
occupants subject to the consideration having been paid to the Owners for the
said property as mentioned hereinabove. The Developer shall also be entitled to
hand over, on behalf of the Owners, any area of the said property, which falls
under reservation and/or set-back and/or requisition or acquisition to the
relevant authorities in the event the same becomes necessary on receiving
proper notice from the authorities and for that purpose, the Owners shall grant
suitable powers and authorities in the said Power of Attorney to be granted to
the Developer and/or his nominee.
·
The Owners
declare that:
a.
The
Owners are the absolute owners of the said property described in the Schedule
hereunder written which is also shown on the plan hereto annexed and marked
"A" and thereon shown surrounded by a red coloured
boundary line and that the said property is vacant save and except the portions
thereof, which are at present occupied and/or encroached upon by the unauthorised occupants and portions whereof are under
reservations as aforesaid.
b.
Subject
to the Competent Authority granting permission and/or sanction under the
provisions of the said ULC Act, the Owners have good right, full power and
absolute authority to grant exclusive rights to develop the said property
described in the Schedule hereunder written to the Developer and the Developer
shall be entitled to develop the said property subject to the terms and
conditions herein contained.
c. They have not created prior to the date
hereof nor shall they create hereafter during the pendency
of the Agreement any right or encumbrance of any nature whatsoever in respect
of the said property or any part thereof.
1.
Simultaneously
with the execution hereof, the Owners shall deposit all the title deeds
relating to the said property described in the Schedule hereunder written with
their Advocates until the completion of the transaction herein. The said
Advocates shall after examining the title as mentioned in the previous clause,
send, against an accountable receipt all the title deeds to the said Advocates
of the Developer for perusal, as and when required by the said Advocates. On
the completion of the transaction herein the Owners through their said
Advocates hand over to the Developer all the said title deeds against an
ordinary receipt.
2.
Upon
the Competent Authority under ULC Act granting the requisite permission and/or
sanction for the development of the said property and on sanction of the plans
by the Municipal Corporation of Greater Bombay and all other concerned
authorities as aforesaid the Developers shall after full payment of the
consideration amount to the Owners be entitled to commence construction on the
said property, for which license to enter upon would be given by the Owners to
the Developer pursuant to this Agreement. The development to be carried out by
the Developer shall be in accordance with the permissions granted by the
Competent Authority under said ULC Act and shall also be in accordance with the
sanctioned plans. The Developer shall also be entitled in his own right to
enter into agreements on what is popularly called Ownership basis or otherwise
and/or arrangements with any person or persons of their choice for the purpose
of selling, allotting, and/or transferring any of the flats/shops/
premises/garages/units, etc. to be constructed by the Developer on the said
property or any portions thereof in accordance with the terms and conditions
laid down by the Competent Authority and in the sanctioned plans and to receive
and appropriate the consideration payable in respect thereof and/or any part
thereof for their own benefit and use. Such agreements and/or arrangements
shall be entered into by the Developer in his own name and at his own costs and
risk and no risk or liability of any kind shall be incurred by the Owners in
any manner.
3.
After
the receipt of the full consideration by the Owners from the Developers, the
Owners shall execute one or more Deeds of Conveyance as may be desired by the
Developers but at the costs and expenses in all respects being borne and paid
by the Developer including stamp duty and registration charges, in respect of
the said property or portions thereof, as the case may be, in favour of a Co-operative Society or Societies or
Association of persons or other body Corporate who have agreed to acquire
flats/shops/garages/premises/units etc. from the Developer.
4.
On
receipt of the full consideration amount by the Owners, if for any reason the
Developers do not desire to obtain the Conveyance of the said property, then
the Owners shall, at the request of the Developers, simultaneously with the
payment of the said balance amount, execute an irrevocable Power of Attorney in
favour of the Developer and/or his nominees or
nominee or representatives empowering and authorising
the said Attorneys, inter alia, to execute one or
more Deeds of Conveyance in respect of the said property or any portions
thereof in favour of the Developer or in favour of Co-operative Society or Societies or
association/s of persons to be formed and/or incorporated and/or nominated by
the Developer herein. No further consideration shall be required to be paid by
the Developer to the Owner for execution of such Deed or Deeds of Conveyance.
5.
Prior
to the execution of one or more Deeds of Conveyance in respect of the said
property or any portions thereof in the manner mentioned herein, the Owners shall
produce the requisite Certificate under the provisions of Section 230A of the
Income-tax 1961 for effectively vesting the said property in favour of the Developer or in favour
of the person or persons nominated by the Developer. It is further agreed that
in the event the said Deed or Deeds of Conveyance or any of them are not
executed at the time of payment of the balance consideration amount an amount
representing 10% of the total consideration amount shall be retained by the
Owner's Advocates until the production of the said Certificate/s under the
provisions of Section 230A of the Income-tax Act.
6.
The
Owner shall pay and discharge all assessments, outgoings, taxes, etc. payable
in respect of the said property upto the date the
possession of the said property is handed over by them to the Developer.
Thereafter, the same shall be paid and borne by the Developer alone. The
Developer shall pay and discharge all outgoings, assessments, taxes, etc. for
the entire property after possession of the same whether whole or in part is
handed over to the Developer. If necessary, the same shall be apportioned
between the parties hereto.
7.
The
Owner declares that no notice of acquisition or requisition issued by the
Municipal Corporation of Greater Bombay or under the Epidemic Diseases Act or
any other statute has been served upon them or anyone on their behalf. If
however, any notice or requisition of the Municipal Corporation or other public
body is issued in respect of the said property after the date of execution of these
presents but before the completion of the transaction the Owners shall comply
with the same at their costs and expenses. The Owners hereby declare that at
present no notice or requisition has been served by the Government of Maharashtra or Municipal Corporation of Greater Bombay for
requisition or acquisition or set-back in respect of the said property or any
part thereof and that so far as they are aware no such requisition or
acquisition or set-back is contemplated. Provided always that if the Owners have
concealed any such notice issued, inter alia, under
any of the Acts as aforesaid, the Developer will be entitled to cancel this
Agreement and on such cancellation to receive forthwith the earnest money and
all other payments made, if any.
8.
All
disputes and differences that may arise between the parties hereto relating to
or in connection with the matter of this agreement or between the parties or
their representatives shall be referred to the sole and final arbitration of
Mr. _______________ or failing him Mr. ____________ as the sole Arbitrator
whose decision shall be final and binding on both the parties. The Arbitrator
shall have summary powers.
9.
All
out-of-pocket expenses of and incidental to this agreement including the
expenses for Deed/s of Conveyance and other documents and writings including
stamp duty and registration charges shall be borne and paid by the Developer
alone. The parties shall bear and pay their respective Advocates' professional
costs.
10. The Developer shall be entitled to develop
the said property either by himself and/or through his nominees including a
firm, wherein he is a partner or a company wherein he is a Director, provided
however, all the obligations and liabilities undertaken by the Developer under
this Agreement shall remain in full force and be personally binding upon the
Developer, and in particular his liability for payment of all amounts under
this Agreement to the Owners.
11. The Owners hereby declare that they have
not entered into with any person or persons Agreement to
In Witness whereof the parties
hereto have hereunto set and subscribed their respective hands the day and the
year first hereinabove written.
Signed and Delivered by the }
withinnamed : Owners }
(1) __________________ and }
(2) ___________________ }
in the presence of }
Signed and Delivered by the }
withinnamed : Developer }
______________________________ }
in the presence of }
RECEIVED the day and year first }
hereinabove written from the }
withinnamed Developer a sum of }
Rs._________/- (Rupees _______ }
___________ only) being the }
amount of deposit to be paid }
by him to us by a Pay Order }
bearing No. __________ and }
dated on ________________ }
Bank ________________ }
Branch _________________ }
Witnesses:
We
say received.
1.
2.
Owners
|
|
Shown above are the rough and general drafts of
documentations. These may be got verified from legal experts before signing as AAkarashna Realtors Inc. will not be responsible for any
inaccuracies and deficiencies in these. (M) 09891088944, 9818512450
Email: investments@aakarshna.com,
Website: http://www.aakarshna.com