Development Agreement for Extension to the Existing Building
THIS AGREEMENT is made at ... this ... day of... between A residing at... hereinafter referred to as "the Owner' of the One Part and Mr. B residing at ... hereinafter referred to as 'the Developer' of the Other Part ;
WHEREAS
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1. The Owner holds a plot of land bearing No... with a building thereon situate at ... and which is more particularly described in the Schedule hereunder written, under a Deed of Lease dated... granted by the .../ Municipal Corporation of... to the Owner for a period of 999 years from the day of ... at the yearly rent of Rs... and on the covenants, terms and conditions therein mentioned.
2. The building on the said plot consists of a ground and two upper floors. The ground and first floor have two flats each of ... sq.feet built up area and are occupied by monthly tenants. The second floor is wholly occupied by the Owner.
3. The present construction has consumed an F.S.I, of ... sq.ft. and under the present development rules an additional F.S.I, to the extent of ... sq.ft. is available for further construction.
4. With the available F.S.I, it is possible to construct two additional floors, each floor having two flats of ... sq.ft. built up area.
5. The Developer has offered to construct two additional floors on the existing building at his own costs provided he is allowed to sell the flats in the said two additional floors to outsiders and provided the owner agrees to submit the said property as developed as aforesaid to apartment ownership under the Apartment Ownership Act, prevailing in the State
6. The Owner has agreed to the proposal of the Developer provided he receives a consideration of Rs... for giving the right of development and provided the Developer negotiates with the existing four tenants to form the Condominium of Apartment Ownership.
7. After negotiations between the parties the following Agreement is arrived at between the parties and it is proposed to execute this agreement in terms thereof.
IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS
1. The Owner has disclosed his title to the said property and given inspection of the said Deed of Lease which is the only document of title, to the Developer and the Developer is satisfied that the Owner has full title to the said property as Lessee.
2. The Developer is also satisfied that there is no restriction on assignment of the said lease and the property comprised therein and the said lease is valid and subsisting.
3. The Owner grants to the Developer the right and permission (subject to what is herein provided) to construct two additional floors having four flats, on the existing building standing on the said leasehold plot described in the Schedule hereundcr written and to sell the said flats at such price as the Developer may think fit.
4. The Developer shall get the plans of the proposed construction of two additional floors prepared by his Architect and after they are approved by the Owner and the Developer, the same will be submitted by the said Architect in the name and for and on behalf of the Owner for approval to the Municipal Corporation.
5 It will be the responsibility of the Developer to get the plans sanctioned by the Municipal Corporation of... and to obtain the I.O.D. and Commencement Certificate at his own costs. If any premium is required to be paid to the said Corporation for such additional construction and other deposits, the same will be paid by the Developer in the name of the Owner.
6. This Agreement is subject to the Appropriate Authority under Ch. XXC of the Income Tax Act approving this agreement and issuing its No Objection Certificate under the provisions of the said Chapter and shall be effective and binding on the parties only if that certificate is issued but not otherwise. On the execution of this agreement the parties shall within the prescribed time file the prescribed application Form No. 371 duly filled in and signed by both the parties hereto. It will be the responsibility of the Developer to pursue the said application and to supply all information as may be required by the said Authority.
7. If the plans of the proposed construction are not sanctioned by the Municipal Corporation or if the Appropriate Authority refuses to issue No Objection Certificate for any reason, this Agreement will be deemed to be cancelled without any liability of one against the other.
8. On the plans for the construction of the additional floors being sanctioned by the said Corporation and the Appropriate Authority issuing its No-objection Certificate in respect of this Agreement as herein provided, the Developer shall pay to the Owner the said amount of Rs... being the full consideration to be paid by him to the Owner as aforesaid and the Owner will grant license or permission to the Developer in writing to enter upon the said property for the purpose of putting up the additional construction as aforesaid.
9. The work of construction of the additional floors will be carried out by the Developer as per the sanctioned plans, at his own costs and risk and for that purpose the Developer may engage contractors, architects, engineers and others and pay their fees. All building material will also be purchased by the Developer at his own costs.
10. The Developer may provide a lift in the building at the suitable place at his own costs provided the lift will be made available to the Second floor occupied by the Owner. The cost of maintaining the lift and electric charges in respect of thereof will be shared by the owners of flats in the said two additional floors and by the Owner in proportionate shares.
11. The Developer will provide the flats in the said two additional floors with such amenities and conveniences as they may think fit but without disturbing the fittings and fixtures in the existing other fiats and causing any inconvenience or nuisance to them.
12. The said construction work will be completed within a period of one year from the date on which the plans will be sanctioned by the Corporation.
13. During construction work the Developer shall take as much care as possible to cause no inconvenience or discomfort to the existing occupants of the said building.
14. The Developer hereby agrees to indemnify and keep indemnified the Owner against all liabilities, loss, costs, charges and expenses that the Owner may incur or suffer on account of any breach committed by, the Developer, his agents and servants, of any rules and regulations of the Municipal, Govt. or any other local authority relating to the construction work or on account of any claim for any accident occurring during the course of construction to any worker or otherwise howsoever.
15. The Developer will be entitled to sell the four flats in the additional construction to such purchasers thereof and at such price as he may think fit and the Developer will be entitled to appropriate the sale proceeds to himself after deducting the costs of construction incurred by him and other expenses provided that the flats will be sold only to those Purchasers who agree to join the Condominium of the flat owners in the said building and hold their respective fiats on Apartment Ownership basis. The Developer will enter into separate agreements for sale of the new flats with the Purchasers and the costs, charges and expenses in respect thereof including stamp duty and registration charges will be borne and paid by the Developer. The Owner may join such Agreement only as a formal or confirming party.
16. It will be the responsibility of the Developer to negotiate with the tenants occupying the ground and first floor of the said building for purchasing the fiats occupied by them on Apartment Ownership basis at such price as may be agreed between the Developer and the said tenants.
17. The price of the fiats occupied by the tenants or any of them and agreed upon will be payable to the Owner. If any tenant refuses to purchase the Hat occupied by him then the said fiat will be deemed to continue to belong to the Owner and the tenant of that flat will continue to be the tenant of the owner or of the person to whom the Owner may transfer the said flat.
18. After the said new flats are constructed and sold by the Developer and the completion certificate in respect thereof is obtained by him from the Municipal Corporation, the Owner will get prepared and register the Declaration in the prescribed form for submitting the said flats to the apartment ownership under the Apartment Ownership Act and the Owner will execute the Deeds of Apartments in favour of the Flat Purchasers including the Purchasers of new fiats as well as those of the existing tenants who will agree to purchase their respective fiats. The Owner will be deemed to be the Purchaser of his own fiat on the second floor as well as those flats whose present tenants do not join the Apartment Ownership scheme and they will be deemed to be the tenants of the Owner or of those to whom the Owner may himself sell the flats. All the documents such as the Declaration and Deeds of Apartment will be got prepared by the Developer through his advocate and will be approved by the Owner and the flat purchasers. The stamp duty, and registration charges of each Deed of Apartment will be payable by the respective flat purchasers.
19. The Transfer of the flats will be subject to the covenants terms and conditions of the said Deed of Lease and the Deeds of Apartment will be drafted accordingly.
20.The name of the existing building will continue and the Condominium will be also known by the same name.
21. Each Flat owner will pay the Municipal and other taxes and ground lease rent in respect of his fiat separately but so long as the Municipal tax bill is common to the whole building the amount of taxes will be divided between the flat owners in proportion to the area of the flats, provided that, if the rateable value of the building is increased due to the construction of the new flats, the excess tax payable due to such increase will be proportionately borne by the Purchasers of new flats.
22. If the Developer for any reason fails to construct or complete construction of the two additional floors within the period mentioned above or any extended period, the Owner will have the right to cancel this Agreement by giving fifteen days prior notice to the Developer and on such cancellation the construction work if any done by the Developer will stand forfeited to the Owner. In that event, the Owner will return the consideration amount paid to him by the Developer less such amount as will be sufficient to make good the loss and damages, if any suffered by the Owner.
23. Until the Apartment Ownership is constituted as aforesaid, the whole of the said property shall be of the ownership of the Owner and the Developer shall have no interest in or right thereto or any part thereof.
24. If any dispute or claim arises between the Owner and Developer in connection with this Agreement, the same will be referred to arbitration of a common arbitrator if agreed upon or to two arbitrators one to be appointed by each party to the dispute and the arbitration will be governed by the Arbitration and Conciliation Act of 1996.
IN WITNESS WHEREOF the parties hereto have put their respective hands the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO
X X X X X
Signed and delivered by the )
withinnamed Owner Mr... )
in the presence of ... )
Signed and delivered by the )
withinnamed Developer )
Mr. ... in the presence of )