Development Agreement Of Vacant Land Within Ceiling Limit Deeds Property 1924 - Legal Draft

...(2) ...(3) .... as partners and carrying on business of developers of properties at ... hereinafter referred to as 'the Developers' of the Other Part;
WHEREAS -
1. That Owner is absolutely seized and possessed of a piece of vacant land situate at ........... and which is more particularly described in the Schedule hereunder written.
2. The said piece of land admeasures ... Sq. ft, and is within the ceiling limit and the Owner is entitled to hold the same.
3. The Owner desires to develop the said land by constructing a building thereon on Flat Ownership basis but is unable to do so personally for want of finance and other difficulties.
4. The Developers have offered to develop the said land described in the Schedule hereunder written, on the following terms and conditions.
5. The said land proposed to be developed is shown on a plan hereto annexed, by ...colour wash and marked 'A'.
6. The Owner has agreed to authorise the Developer to develop the said land described in the Schedule hereunder written by constructing a building thereon on Flat Ownership basis and the Owner has agreed to directly convey the said land with the new building thereon and other structures to the developers or their nominees including a Co-operative Housing Society to be formed of the Purchasers of Flats and other premises in such building, on the following terms and conditions agreed to between the parties hereto:
7. The Owner has got the plan of the proposed building sanctioned by the .... . Municipal Corporation through his Architect and a copy of the plan is hereto annexed as Annexure No. B.
8. As the plot of land is within ceiling limit, no permission of the Competent Authority is required under the Urban Land (Ceiling & Regulation) Act, 1976 to develop the same.
NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: -
1. With a view to develop the said land described in the Schedule hereunder written (hereinafter referred to as 'the said land") as per the sanctioned plan above referred to, the Owner hereby agrees to entrust and hand over to the Developers for and on behalf of the Owner, the work and right of development of the said land described in the Schedule hereunder written on the terms hereinafter contained.
2. The Developers hereby agree to develop and/or cause to be developed the said property for and on behalf of the Owner on the terms mentioned herein and as permitted by the concerned authorities, by constructing a building thereon and other premises on Flat Ownership basis and then to sell the said land to the Developers or their nominees. The Developers agree that they will obtain whatever other permissions are required to develop the property at their own costs and on their responsibility but in the name of the Owner and on his behalf.
3. In consideration of the Owner having agreed to entrust to the Developers the development of the said land described in the Schedule hereunder written and to confer upon the Developers the rights, powers, privileges and benefits as mentioned herein including the right to purchase the land the Developers agree to pay to the Owner a sum of Rs... in the manner following. The Developers will pay to the Owner a sum of Rs... as earnest or deposit and in part payment of the said amount on execution of these presents and the balance of Rs... will be paid in the manner following:-
1. In addition, the Developers shall allot one Flat on ownership basis free of costs as hereinafter provided to the Owner.
2. Provided, if any F.S.I, in addition to the existing available F.S.I, in respect of the said land becomes available hereafter, the Developers shall pay an additional sum calculated at the rate of Rs... per Sq. ft. to the Owner on such additional F.S.I, being sanctioned by the Municipal Corporation.
3. This Agreement will not be treated as a partnership between the Owner and the Developers.
4. The Developers are satisfied that the Owner is the full owner of the said land and that the said land is not subject to any mortgage, charge or any other encumbrance.
5. The Developers shall not start any work of development on the said property unless the I.O.D. and Commencement Certificate are issued in favour of the Owner by the concerned authorities.
6. The development of the said property by construction of a building thereon shall be at the entire costs, expenses and risk of the Developers.
7. The building to be constructed on the said land and all dwelling units thereon will be in accordance with the Development Rules and Regulations for the time being in force. The Developers shall be at liberty to make necessary applications for that purpose, to the authorities concerned at their own cost and expenses in the name of the Owner and the Owner shall join, in such applications but the responsibility of obtaining such permissions will be on the Developers and at their costs.
8. The Owner in anticipation of the transfer of the said land as herein provided, gives licence and permission to the Developers to enter upon the said land described in the Schedule hereunder written or any part thereof as aforesaid with full right and authority to commence, carry on and complete development thereof in accordance with the sanctioned building plans and with the permissions herein mentioned. However, if the Developers or their agents commit any breach of any term or conditions of this Agreement then the Owner shall be entitled to terminate this agreement and to forfeit all moneys paid under this Agreement and on such termination the license and permission given to the Developers as aforesaid shall stand revoked. The said license to develop the said land will be personal to the Developers and under no circumstances the Developers will assign their right and interest to any other party without the consent of the Owner provided that, if with such consent the Developers shall have in their turn entered into an Agreement with a third party (of which the Developers shall have given notice to the Owner) under which the Developers have granted right to such third party to develop the said land or any part or parts thereof then the Owner shall not exercise his aforesaid right under this Agreement to terminate the same unless the Owner shall first give notice in writing to such third party specifying the breach or breaches of the terms and conditions of this Agreement stated to have been committed by the Developers or such third party and in respect of which the Owner intends to exercise his right of termination of this Agreement and such third party shall have failed to remedy or rectify such breach for a period of thirty days from receipt of such notice from the Owner.
9. If the Developers will make default in payment of the balance amount on the due date thereof as aforesaid then and in that event the Owner shall become entitled to terminate this Agreement and to forfeit all moneys paid hereunder and on such termination the License to develop the property given to the Developers shall stand revoked and the Developers shall take away and remove within three months of such termination all buildings, structures and materials brought on the said property and in default thereof the same shall belong to and vest in the Owner absolutely and the Developers shall not be entitled to any compensation or damages in respect thereof. Without prejudice to his rights, the Owner may, at his option, condone such default on payment by the Developers and extend the time
for payment if the Developers pay interest at the rate of .........per cent per annum on the defaulted instalment provided that, the Owner shall before terminating this Agreement as aforesaid make a demand in writing for payment of the said sum against the Developers or on the third party (if any as referred to in Clause 8 above) to whom the Developers may have granted right to develop the said land or any part or parts thereof and if the Developers or such third party shall have paid the amount due to the Owner within thirty days of the receipt of such demand, then the Owner shall not be entitled to terminate this Agreement under this Clause.
10. The Owner shall at the request and costs of the Developers sign and execute from time to time the amended plans if any amendments are intended by the Developer in the sanctioned plan and other applications for construction of the building and structures on the said land for being sanctioned and approved by Municipal Corporation or other authorities provided that, all costs, charges and expenses including Architect's fees in this connection shall be borne and paid by the Developers alone.
11. The Developers shall Indemnify and keep indemnified the Owner from and against all actions, suits, proceedings, fines, penalties, Architects' fees and all costs, charges, expenses and damages incurred or suffered by the Owner in the course of such development.
12. The Owner shall, if required by the Developers, execute a power of attorney in favour of the Developers or their delegate giving all necessary powers required only to carry out the work of development in all respect as contemplated by these presents and no further.
13. The Developers shall be entitled to carry out at their own costs, charges and expenses in all respects all or any items of work for development of the said land including laying of drainage, electric cables, water pipes and other connections and lighting of roads and other items as per the terms and conditions imposed by the       Municipal Corporation while sanctioning the plan and also other items of works as may be required to be carried out for the purpose of making the said land fit for construction of building and structures thereon. All finances for completion of the said items of works shall be provided and borne and paid by the Developers alone.
14. The Owner hereby agrees to render all assistance and co-operation that may be required by the Developers from time to time to carry out the Development work in respect of the said land and construction and completion of building and structures thereon in accordance with the terms and conditions as may be stipulated by the concerned authorities and in respect of any other matters relating to or arising therefrom provided that the Owner shall not be liable to incur any financial obligations in that behalf.
15. The Developers shall reserve one Flat admeasuring ........ sq. ft. built-up area on the First Floor and fronting the road on which the said land is situate and allot the same to the Owner free of costs and it will contain all the usual amenities and conveniences as will be provided in other flats, If any amenities, in addition or in substitution of the common amenities and conveniences arc required by the Owner, the Developers shall provide the same but the additional costs thereof will be payable by the Owner extra. The Developers shall not allow any Flat Purchaser to occupy the Flat agreed to be purchased by him unless the possession of the Flat to be allotted to the Owner is given to the Owner.
16. Subject to what is provided in the above clause the Developers shall beat liberty to sell and/or allot the dwelling units or flats and/or any other tenements and/or premises in the building and structure to be constructed on the said land and/or to enter into any package deal arrangement for allotment of all such flats in the building to be constructed on the said land at such price and on such terms and conditions and provisions as the Developers may think fit and any terms which may be imposed by any authority or authorities, provided always that, the Developers shall not be released or discharged from their liabilities and obligations hereunder to the Owner. All such allotments shall however, be made by the Developers at their own costs and at their risk, the intention being that the Developers shall alone be liable and responsible to such party or parties in connection with all dealings between the Developers and such party or parties.
16. The Developers will be entitled to permit any of the premises to be occupied by any of the allottees of dwelling units or flats or buildings erected on the said land by the Developers only after all the instalments due and payable by the Developers to the Owner under this agreement, of the consideration aforesaid are paid to the Owner or the payment is otherwise secured to the Owner by a Bank Guarantee as may be agreed upon between
the parties hereto.
17. The Developers shall be entitled to put up and permit to be put up advertisement boards upon the said property, to the effect that the said land is being developed by them, but without Involving the name of the Owner in any manner, and which the Owner will be entitled to remove forthwith if the Developers have committed any breach of this Agreement.
18. Upon payment to the Owner of the full consideration amount mentioned in Clause 3 hereinabove, or the payment thereof or any part thereof remaining unpaid being secured to the Owner as may be agreed upon between the parties hereto as aforesaid and upon the full development being carried out by construction of buildings and sale of flats, the Owner shall directly execute and deliver a Deed of Conveyance in favour of the Developers or their nominees including a Co-operative Society of purchasers of flats, and premises in the new building to be erected by the Developers. The Developers hereby agree to join in such Deed as Confirming Party if required. Such Deed or Deeds of Conveyance shall be prepared by the Advocate for the Developers and approved by the Advocates for the owner and/or of such society.
19. The Developers shall consume or utilise the full F.S.I, available in respect of the said land to be developed and shall not utilise any F.S.I, available in respect of any other property.
20. The Owner shall sign all applications or papers for the necessary permission of the Competent Authority or State Government under the provisions of the Urban Land (Ceiling & Regulation) Act, 1976 if required for the transfer of the said property described in the Schedule hereunder written. However, it shall be the responsibility of the Developers to file the applications with the concerned authorities and pursue the said applications and obtain the said permission of the State Government/Competent Authority at their own costs and expenses.
21. It is agreed that after the date of this Agreement the Developers shall pay and discharge all taxes and outgoings including Municipal Taxes, and all other charges, rates, cess, taxes that may be levied by any Public Body or authorities in respect of the said building and which would be payable by the Owner as owner. The Developers shall indemnify and keep indemnified the Owner from and against non payment thereof. In the event of the Developers paying any refundable deposits to the Municipal Corporation and other concerned authorities in the course of the development of the said property in the name of the Owner, the Developers shall be entitled to the refund of such deposit in their own name. To enable the Developers to obtain the refund the Owner shall sign or execute all such writings as may be required by the Developers in that behalf, without raising any objection or requisition in that behalf.
The Owner declares that no notice from the Government or any local Body or authority including the... Municipal Corporation has been received by or served upon the Owner or any person interested in the said property.
22. The Owner declares -
(a)That the Owner is entitled to enter into this Agreement with the Developers and he has full right and authority to sign and execute the same.
(b) That the Owner 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 person or persons and that he has not created any mortgage charge or any other encumbrances on the said property
as mentioned herein.
(c) That the Owner 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 whatsoever.

23. All out-of-pocket expenses of and incidental to this Agreement and the transactions in pursuance thereof including the Deed of Conveyance other assurance in respect thereof including Stamp Duty and Registration charges shall be borne and paid or cause to be paid by the Developers or by the purchasers of flats alone. The Owner and the Developers shall pay their respective Advocates' fees.
24. The Developers shall indemnify and keep indemnified the Owner against all losses, damages, costs, charges, expenses that will be incurred or suffered by the Owner 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.
25. The Developers 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 parties have put their hands the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO:
xx       xxx
Signed by the withinnamed        )
Owner ... in the presence of     )
Signed by the withinnamed        )
Developers M/s ... by the        )
authorised partner Mr...         )
in the presence of ...   )