Developer’s Agreement

Developer’s Agreement Deed Format

This Agreement is made this …………… day of …………….. 2000 between AB Ltd. a company registered under the Companies Act 1956 and carrying on business at ………………………. (hereinafter referred to as the developer) of the one part and Mr. XY residing at ……………………….. (hereinafter referred to as the owner) of the other part.

Whereas the developer has vast experience in developing lands and constructing multi-storeyed buildings and flats.

And whereas the owner is absolutely seized and possessed of a piece of land measuring 5 cottahs with structures thereon being premises No. ………….. and more fully described in Schedule I hereunder.

And whereas the owner intended to demolish the existing structures and to get constructed a multi-storeyed building at the said premises and approached the developer for that purpose.

And whereas the developer has agreed to develop the said land and on demolishing the existing structures to construct a multi-storeyed building with apartments or flats system with the object of selling such apartments or flats.

Now these presents witnesseth and the parties hereby agree as follows:

1. This Agreement for development and construction is being made on the express understanding that the developer would comply with and/or cause compliance with all the statutory provisions in relation to such development and construction and for this purpose the expenses that might be incurred would be solely borne by the developer.

2. The developer hereby agrees and undertakes to obtain necessary sanctions and permission for constructing a multi-storeyed building on the said premises after demolishing the existing structures.

3. The developer undertakes to procure for the owner alternative accommodation from the date owner is required to vacate the said premises till construction is completed and the entire first floor apartment to be constructed is given possession to the owner. For such alternative accommodation no rent would be payable by the owner.

4. In consideration of the owner having agreed to entrust to the developer the development of the land and construction of the said multi-storeyed building at the said premises and in connection therewith, authorising the developer to exercise the rights, powers, privileges and benefits of the owner and the owner executing a Power of Attorney in its favour, the developer agrees to pay the owner a sum of Rs. 50 lakhs and the entire first floor of the multi-storeyed building when constructed. Out of the said Rs. 50 lakhs the developer would pay Rs. 25 lakhs on execution of these presents and balance in five quarterly instalments beginning from the month in which the said premises is handed over to the developer for the purpose of development and construction.

5. The development of the said land by demolishing the existing structures and construction of multi-storeyed buildings thereon would be according to plan to be sanctioned and subject to such sanction according to the specification and particulars given in Schedule II hereinunder.

6. The demolition of the existing structures, development of the said land and construction of the said multi-storeyed building would be at the sole risk and expense of the developer and the developer would comply with all statutory provisions, rules and regulations in relation thereto.

7. The developer would acquire no right, title or interest in the said premises or the structures that are proposed to be constructed by the developer apart from the rights, privileges and licences that might be granted by the owner under the Power of Attorney to be executed by the owner in favour of developer to enable him to carry out the purposes and objects of these presents.

8. In default of payment of any instalment or any non-compliance of any of the terms and conditions of these presents or on the failure of developer to obtain necessary plan, sanctions and other permissions required to be obtained or committing any other breach of these presents or non-compliance of any of the statutory obligations in relation to the said development and construction of the said premises, this agreement will stand terminated on the owner giving thirty days notice to the developer.

9. The owner hereby gives permission to developer to enter upon the said property for the purpose of development, demolition of the existing structures and construction of the multi-storeyed building subject to developer arranging for the owner an alternative accommodation.

10. The owner agrees to execute the necessary Power of Attorney authorising the developer to do all such acts and things that are necessary for the development of the said land, demolition of the existing structures, construction of the building and to obtain advance booking for the apartments or flats to be constructed on the said premises.

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11. The owner agrees to sign and execute from time to time plans, applications for lay-outs, sub-division, construction of the building and other applications necessary to be submitted to the authorities concerned at the request of and at the cost of developer.

12. The owner shall be indemnified from any action, fines, penalties or costs and expenses for any violation of any statutory provisions in relation to the said development and construction by the developer.

13. The owner shall not object to any construction or laying of sewerage, drainage, water pipes, cables or other provisions made in accordance with the law and scheme of construction of the said multi-storeyed building.

14. Upon full payment of the said Rs. 50 lakhs to the owner, the developer shall be at liberty to enter into agreements to sell or allot any of the flats or apartments as dwelling units in the said multi-storeyed building to be constructed except the 1st floor reserved for the owner and to give possession to any party of such units or flats and to enter into agreement with them or execute Conveyances in accordance with the statutory provisions applicable to such multi-storeyed apartments.

15. On receipt of full consideration including possession of the first floor of the said multi-storeyed building constructed by the developer and the said sum of Rs. 50 lakhs, the owner will execute Deeds of Conveyance in favour of such purchaser of the dwelling units or flats or apartments or in favour of any co-operative society or company or association of purchasers of flats as the developer may desire and as may be permissible under the law in force. Such Deeds of Conveyance shall be prepared by the developer and approved by the owner. The cost of drafting and Stamp Duty on the conveyance, cost of registration and all other expenses shall be borne by the developer and/or purchasers of the flats as may be agreed upon by and between the developer and the purchasers of flats.

16. On and from the execution of these presents the developer shall pay and discharge all taxes, outgoings, rates, cess and all other levies by the Municipality or Public Body or any other authority in relation to the said premises, the demolition of the said structures, development of the said premises and construction of the said multi-storeyed building and sale and allotment and giving possession to the prospective buyers of the said flats.

17. The owner takes no responsibility as regards title to the said property or compliance with any statutory obligations and makes no representation to the developer in any respect whatsoever.

18. The developer declares that it has made all necessary enquires from the places and authorities concerned about the title of the owner in the said premises, any liability of the said premises to any authority or any restrictions put on the said premises and declares that it has entered into agreement after fully satisfying itself about the title of owner and the feasibility and suitability of the said premises to be developed and the multi-storeyed building to be constructed and the apartments to be sold to the intending purchaser and that it would not hold the owner responsible for anything whatsoever.

19. The said development work and construction of the multi-storeyed building and the handing-over of the first floor of the said building to be constructed to the owner should be completed within three years from the date of execution of this agreement. The time will be of the essence of the agreement. In default, the owner shall be at liberty to enter into agreement with another Developer or Contractor or otherwise deal with the said premises and all payments made and expenses incurred by the developer shall stand forfeited.

20. The said development work and construction of multi-storeyed building should be carried out under the direct supervision and in presence of developer and the developer’s presence at the site of construction is a condition of this agreement. However, for the purposes of the said development and construction, the developer may take the assistance of Architects, Building Contractors and others but the work should be carried out under the direct physical supervision of the developer or its duly authorised Director.

21. The developer undertakes to keep the owner fully indemnified against and harmless from any losses, costs, charges, expenses or claims by any of Developer’s Contractors, Architects, workers or agents or for any breach of any statutory or contractual obligations.

In witness whereof the parties herein have signed, sealed and delivered these presents on the day, month and year first above-written.

The Schedules above referred to

Schedule I

Details of the premises to be developed.

Schedule II

Detailed specifications of the multi-storeyed building to be constructed and details of statutory provisions to be complied with by the developer.

Signed, sealed and delivered by

Mr. ……………………… pursuant to

Board Resolution of AB Ltd.

dated …………….. in the presence of:

1. …………………… Signature

2. ……………………

Signed, sealed and delivered by the said Mr. XY in the presence of:

1. …………………… Signature

2. ……………………

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