Development Agreement Of Land With Building Deeds Property 1923 - Legal Draft

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Category : Deeds Property

DEVELOPMENT AGREEMENT OF LAND WITH BUILDING

THIS AGREEMENT is made at... this ... day of... between Mr. A residing at... hereinafter referred to as the 'Vendor' of the One Part and M/s A. B. &Co. a registered partnership firm consisting of (1]... (3)... as partners carrying on business of property developers and Builders and having their office at ... hereinafter referred to as 'the Purchasers' of the Other Part;

WHEREAS -
1. The Vendor is absolutely seized and possessed of or otherwise well and sufficiently entitled to land and building thereon situate at... and more particularly described in the Schedule hereunder written.
2. The Purchasers have approached the Vendor with an offer to purchase the said property with a view to develop the same by constructing a new building thereon on Flat Ownership basis, in place of the existing old building.
3. The Vendor and the Purchasers have negotiated the terms and conditions for the sale and development of the said property as recorded hereinafter and have agreed to enter into this agreement.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

1. The Vendor agrees to sell and the Purchasers agree to purchase the said property described in the First Schedule hereunder written on "as is where is basis" at the price of Rs.,.
2. Out of the said amount the Purchasers have paid to the Vendor a sum of Rs... as earnest and the balance of Rs... will be paid by the Purchasers to the Vendor on the Vendor permitting the Purchasers to enter upon the said property for carrying out the work of development as herein provided, pending the transfer of the said property by the Vendor to the Purchasers or their nominee as hereinafter provided, Provided however that, out of the said balance, a sum of Rs... will be deducted and kept with the Purchasers Advocate as security for the Vendor executing the deed of conveyance and obtaining Income Tax Certificate under S.230A of the Income Tax Act, and it will be paid to the Vendor on the execution of the said Deed and obtaining
the said Certificate.
3. The Vendor shall make out a marketable title to the said property, free from any encumbrance and from any doubt,
4. Within eight days from the date hereof the Vendor shall produce the documents of title to the Purchaser's Advocate for investigation of title.
5. If within one month from the date hereof no requisitions on title are received from the Purchaser's Advocate the title of the Vendor shall be deemed to be accepted by the Purchasers.
6. The Purchasers shall, on behalf of and in the name of the Vendor apply to the Competent Authority under S.22 of the Urban Land (C & R) Act, 1976 for permission to pull down the existing building in the said property and constructing a new one in its place as per municipal sanctioned plans, on Flat ownership basis. The Vendor will sign all applications and papers for the said purpose but all actions necessary to obtain such permission will be taken by the Purchasers at their own costs. In other words, it will be the entire responsibility of the Purchasers to obtain such permission. The existing building on the land described in the Schedule hereunder written will not be pulled down unless such permission is obtained.
7. The Purchasers shall also, in the name of the Vendor and on his behalf, prepare the plans of the proposed new building, through their Architects and submit the same to the Municipal Corporation concerned for approval. All expenses required to get the plans prepared and approved as aforesaid including all deposits and premium required to be paid to the Municipal Corporation and other concerned authorities will be made by the Purchasers. The Purchasers will also obtain the I.O.D. and Commencement Certificate from the Municipal Corporation at their own costs.
8. After the Purchasers (a) approve the title of the Vendor to the said property (b) obtain the permission of the Competent Authority under Sec. 22 of the said Act of 1976, and (c) get the plans of the new Building sanctioned and commencement certificate obtained, the Vendor shall allow the Pur chasers to enter upon the said property for the development thereof, as the Licensee of the Vendor against the Purchasers paying to the Vendor the said balance consideration of Rs... less the said sum of Rs... which is to be kept deposited with the Purchasers' Advocate as aforesaid. The payment of the said balance is a condition precedent to the Vendor allowing the Purchasers to enter upon the said property.
9. If the Purchasers do not carry out the requirements mentioned in the above mentioned clause within four months from the date hereof, the Vendor will have the option to cancel this Agreement by giving to the Purchasers a fifteen day prior notice to that effect and on the expiration of the said period, this agreement shall stand cancelled, and the earnest money paid to the Vendor will stand forfeited to the Vendor.
10. On the Vendor allowing the Purchasers to enter upon the said property as aforesaid the Vendor shall, if required by the Purchasers execute a general Power of Attorney in favour of any of the partner or partners of the Purchasers or any other person nominated by the purchas ers authorising him or them to carry out the work of development as herein p rovided including the power to sell flats therein and such other powers as may be necessary and approved by the Vendor's Advocate.

11. In addition to the cash consideration to be paid by the Purchasers as aforesaid the Purchasers shall allot and give on ownership basis, free of costs, one flat having a built up area of ... sq. ft. on the first floor of the new building. For the purpose of total consideration payable to the Vendor, the price of the said flat is fixed at Rs...

12 The Purchasers agree and undertake that they will not give posses sion of any flat to the Purchaser thereof in the said building unless vacant possession of the flat to be given to the Vendor as aforesaid is given to the Vendor. The Vendor undertakes to join the Cooperative Society of the flat purchasers as a member thereof. For the sake of formality the Purchasers will execute a separate agreement for sale of the said flat to the Vendor in the form in which the agreements for sale of flats will be entered into with other flat Purchasers, subject to what is herein provided.

13 The said existing building is occupied by ... monthly tenants. It will be the responsibility of the Purchasers to negotiate with them and to enter into agreements with them for getting the premises occupied by them vacated on such terms as may be agreed upon between the Purchasers and the tenants.

14. All the outgoings by way of taxes, land revenue etc. in respect of the said property will be paid by the Vendor upto the time the Vendor allows the Purchasers to enter upon the said property as aforesaid and, thereafter, the same will be paid by the Purchasers.
15. The Vendor declares that he has not received any notice for acquisition or requisition of the said property from Govt. or any other authority, and the said property is not under reservation.
16. After entering upon the said property as aforesaid the Purchasers shall pull down the existing building without causing any damage to any other adjacent property or occupants thereof and the demolition work will be done according to the Municipal rules, if any, in that behalf. All the building material will belong to the Purchasers but certain fixtures and fittings therein a list of which is separately given to the Purchasers, will be the property of the Vendor and the Vendor will be entitled to take them away.
17. After demolition of the existing building the Purchasers will clear the site and construct a new building thereon in term of the sanctioned plans and of the U.L.C. Order if any. All the costs, charges and expenses of the demolition of the existing building and construction of new building will be paid by the Purchasers and the Purchasers will carry out the said work at their own risk and on their account and the Vendor will not be responsible for the same.
18 The Vendor, alongwith the other Flat Purchasers of flats in the building, shall join in forming and registering a Co-operative Housing Society to be known by such name as the Purchasers may decide and which will be approved by the Registrar of Co-operative Societies and for this purpose also the Vendor shall from time to time sign and execute the application for registration and/or membership and other papers and documents necessary for the formation and the registration of the Society and for becoming a member, including the bye-laws of the proposed Society

and duly fill in, sign and return to the Purchasers within ... days for the same being forwarded by the Purchasers to the Flat Purchasers, so as to enable the Purchasers to register the organisation of the Flat Purchasers under Section 10 of the said Act within the time limit prescribed by rules of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Rules. 1964. No objection shall be taken by the Vendor if any changes or modifications are made in the draft bye-laws, as may be required, by the Registrar of Co-operative Societies as the case may be, or any other Competent Authority.
19. The Vendor will execute the Deed of Conveyance in favour of the Purchasers or their nominees including a Co-operative Housing Society of the Flat Purchasers in the new building, whenever required after the building is fully constructed and the flats are sold. All the costs, charges and expenses of such deed or any other document, required to be signed by the Vendor, including Stamp duty and registration charges will be on account of the Purchasers.
20. It will be the responsibility of the Purchasers to form and register the Co-operative Housing Society of the Flat Purchasers and the Vendor will not be concerned with or responsible for the same.
21. The Vendor declares —

(a) That the Vendor is entitled to enter into this Agreement with the Purchasers and he has full right and authority to sign and execute the same.
(b)That the Vendor has not agreed, committed or contracted or entered into any Agreement for sale or lease of the said property or any part thereof to any persons or person and that he has not created any mortgage charge or any other encumbrances on the said property as mentioned herein.
(c) That the Vendor has not done any act, deed, matter or thing whereby or by reason whereof, the development of the said property may be prevented or affected in any manner whatso ever.

22. All out-of-pocket expenses of and incidental to this Agreement and the transactions in pursuance thereof including the Deed of Conveyance and other assurance in respect thereof including Stamp Duty and regis tration charges shall be borne and paid or cause to be paid by the Purchasers alone. The Vendor and the Purchaser shall pay their respective Advocates' fees.
23. The Purchasers shall indemnify and keep indemnified the Vendor against all losses, damages, costs, charges, expenses that will be incurred or suffered by the Vendor on account of or arising out of any breach of any of these terms or any law, rules or regulations or due to accident or any mishap during construction or due to any claim made by any third party
in respect of such construction or otherwise howsoever.
24. The Purchasers shall be entitled to enter into separate contracts in his own name with building contractor, architects and others for carrying out the said development at their risk and costs.
IN WITNESS WHEREOF the Vendor and the Purchasers have put their hands the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO
XXX       X
Signed and delivered by the       )
withinnamed Vendor Mr...          )
in the presence of        )
Signed and delivered by the       )
withinnamed Purchasers    )
M/s. A B & CO. by its partners    )
(1)       )
(2)       )
( 3)       )
in the presence of       )