Development Agreement of Immovable Property

THIS AGREEMENT FOR DEVELOPMENT made at this day of
___ in the Christian Year Two Thousand _ BETWEEN XYZ of __, Indian
Inhabitant having address at _________________________, hereinafter called “THE
OWNER” (which expression shall unless repugnant to the context or meaning thereof be deemed to
include his heirs, executors and administrators) of the One Part; and M/S. ABC & CO.,
a registered partnership firm having its office at _________
______________________________________ , hereinafter called “THE
DEVELOPERS” (which expression shall unless repugnant to the context or meaning thereof mean
and include the partners or partner for the time being of the firm, the survivors or survivor of them
and the heirs, executors and administrators of the last surviving partner and their his or her assigns)
of the Other Part;
WHEREAS:—
(a) The Owner is seized and possessed of or otherwise well and sufficiently entitled to the
pieces or parcels of land or ground of land revenue tenure situate lying and being at
_______________________________ containing by admeasurements
sq.yards equivalent to square meter or thereabouts bearing
Survey No. Hissa No. together with structures standing thereof
known as “AAVISHKAR NIWAS” and more particularly described in the Schedule
hereunder written and delineated on the plan thereof hereto annexed and thereon shown
surrounded by red colored boundary line (hereinafter called “the said property”).
(b) The said property consists of ground floor plus two upper floors of which the second floor is
in possession of the Owner and the ground floor and first floor are in possession of the
tenants, a list of which is annexed hereto as Annexure “A”. The area of the ground floor
premises is 1229 sq.ft. of carpet area and the area of the first floor and second floor
premises is 1553 sq.ft. of carpet area each.
(c) The Owner is desirous of developing the said property and has approached the Developers
for the same. The Owner has agreed to permit the Developers to develop the said property
on the terms and conditions recorded hereinafter.
(d) The parties hereto are desirous of recording the said terms and conditions in the manner
hereinafter appearing.
NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY MUTUALLY AGREED BY AND BETWEEN
THE PARTIES HERETO as follows:—

The Owner hereby permits the Developers and the Developers shall develop at their own
costs, efforts and expenses “the said property” more particularly described in the Schedule
hereunder written. For development of the said property, the Developers shall be entitled to
apply for and obtain necessary sanctions and necessary permissions from all the concerned
authorities for commencement and completion of the construction on the said premises; to
arrive at necessary understandings or agreements with the tenants/occupants of the said
property and obtain possession of the premises from them; to obtain possession of the
portion of the property occupied by the owner; to demolish the existing building and to
construct and complete the construction work; to construct flats, offices, garages, shops,
stilt parking etc; to acquire Transfer of development rights as per DC Rules and other
relevant rules as may be applicable and to use and consume the same by putting up
constructions; to sale the newly constructed premises to third parties and receive
consideration thereof and to do all other acts and deeds required for complete and proper
development of the said property. All the increased, additional and further FSI, other
benefits directly and/or indirectly attached to the said property and TDR available and/or
made available in respect of the said property shall belong to the Developers and shall be
used by the Developers for their benefit without payment of any further consideration to the
owner.
In consideration of the Owner permitting the Developers to develop the said property, the
Developers shall pay to the Owner in all a sum of Rs. _____/- (Rupees
________ only) in the following manner:—
(a) Rs. _/- (Rupees _____ only) as and by way of earnest
money or deposit shall be paid on or before the execution of these presents (the
payment and receipt whereof the Owner doth hereby admit and acknowledge);

(b) Rs. _/- within 30 days from the date (i) on Owner making out free and
marketable title to the said property; (ii) on the Developers entering into an agreement
with the present occupants/tenants of the building for providing alternate
accommodation to them as also their handing over physical possession of the property
in their occupation to the Developers; (iii) on the Owner handing over vacant
possession of the second floor of the said building in his occupation to the Developers
for its development as provided hereinafter and (iv) on receipt of IOD from Municipal
Corporation; whichever event is later.
(c) Rs. __/- (Rupees _______ only) to be paid in equal
installments of Rs. __________each payable every two months after the installment in Sub-Clause (b) becoming due. Out of this amount a sum of Rs. ____/- (Rupees ________ only) to be adjusted against the
allotment of a flat to the owner by the Developers as mentioned in Clause 3 hereunder
written; and
(d) The balance Rs. _/- shall be paid against execution of Deed of Conveyance
as provided hereinafter.

On completion of the construction of the building on the said property, the Developers shall
as part of the consideration allot and handover to the Owner on what is commonly known
as ownership basis a tenement/flat therein of admeasuring 1200 sq.ft. of carpet area on the
third floor of the proposed new building and which flat is mutually valued at concessional
amount of Rs. _/- (Rupees __________ only) and which is
forming the part of the total consideration of Rs. _____/- (Rupees
____________ only) and which amount is to be adjusted out of the said
total consideration payable as provided in clauses 2(c) above.
The Owner and the Developers shall jointly get the said property surveyed and ascertain
the exact area of the said property. The Developers shall after the work of joint survey is
complete construct at their own costs a boundary wall surrounding the said property. If at
the time of construction of the said boundary wall, any objection or obstruction is received
by the Developers then in that event, the Developers shall forthwith bring the same to the
notice of the Owner and the Owner shall at his own costs remove such obstruction
or objection.
The Developers shall for and on behalf of the Owner and in the name of the Owner be
entitled to submit to the Municipal Corporation and all other concerned authorities plans for
getting the said property developed. The Developers shall at their own cost get the said
plans sanctioned by the concerned authorities. The Developers shall also at all times be
entitled to alter and modify the building plans as they may desire and as permitted in
accordance with the rules. The Developers shall at their cost be entitled to appoint
Architects, Contractors, Engineers, Supervisors, and Labors etc. for development of the said
property.
The Developers have agreed to develop the said premises as aforesaid free from all
encumbrances and reasonable doubts of whatsoever nature and with the free, clear and
marketable title but subject to the existing occupants/tenants on the ground and first floor
premises of the said property. The Developers shall after demolishing the existing structure
be fully entitled to acquire TDR (Transfer of Development Rights) and use/consume the
same on the said property by putting further and additional construction/structure.
The Owner hereby declares and confirms as under:—
(a) The Owner is otherwise well and sufficiently entitled to the said property described in
the schedule hereunder written. His title to the said property is free and marketable
subject to rights of existing occupants
as fore stated.
(b) No other person except the Owner has any right, claim or demand in respect of the
said property or any part thereof;
(c) The Owner has not created any sale, gift, mortgage, charge, lien, lease or any other
adverse right or any other encumbrance whatsoever or howsoever on the said property
and the said property is not subject to any claim or demand, encumbrance, attachment
or any process issued by any Court or Authority and the Owner hereby declares that he
shall hereafter not create any third party rights of whatsoever nature in respect of the
said property including any change in the existing tenancies or any
of them.

(d) The Owner has not entered into any agreement or arrangement, oral or written with
regard to the sale of the said property.
(e) There are no proceedings instituted by or against the Owner in respect of the said
property and pending in any Court or before any authority and the said property is not
under any lispendens;
(f) No Notice from any Government, Municipal Corporation or any other public Body or
authority or any notice under any law including the Land Acquisition Act, the Land
Requisition Act, the Town Planning Act, the Municipal Corporation Act, and Urban Land
Ceiling Act, or any other statute has been received or served upon the Owner in
respect of the said property or any part thereof which restricts or may restrict the
development of the said property; and
(g) The said property is not under any reservation and there are no restrictions on
development thereof.

The Owner shall within a period of seven days from the date of the execution of this
Agreement, hand over to the Developers’ Advocates and Solicitors all original documents
and title deeds relating to the said property for enabling the Developers’ Advocates and
Solicitors to investigate the Owner’s title to the said property. The Developers shall
administer requisitions to the Owner within a period of two months from the date of receipt
of such original documents and title deeds and if within the said period of two months no
requisitions are received by the Owner, the Owner shall presume that the Developers have
accepted the Owner’s title to the said property and the Developers shall not be entitled to
administer any requisition on title of the Owner.
The Owner shall make out free and marketable title to the said property free from all
reasonable doubts and encumbrances. The Owner shall also furnish copies of all title deeds
of the said property to the Developers.
The Developers shall at their own cost and efforts be fully entitled to negotiate and finalise
all the terms and conditions with the said tenants/occupants for smooth development of the
said property as they in their absolute discretion think proper.
The Developers shall complete the construction work of the said building within a period of
two years after the receipt of requisite commencement Certificate from the Mumbai
Municipal Corporation.
The Owner shall at the request and demand of the Developers make and execute a proper
Deed of Conveyance and all other necessary documents and papers to complete the title
agreed to be given in respect of the said property and such Conveyance shall be in favor of
the Developers or their nominee or nominees including a Co-operative Housing Society,
Limited Company or condominium. The Developers shall be entitled to all monuments of
title relating to the said property which will be handed over to the ultimate Purchasers.
Simultaneously upon the Developers making payment in terms of 2(b) above, the Owner
shall put the Developers in possession of the said property for its development including in
vacant possession of the said second floor presently in occupation of the Owner.
The Owner shall simultaneously on receipt of payment in terms of Clause 2(b) above, also
execute a proper Power of Attorney in favor of the Developers and/or their nominee or
nominees in respect of the said property for its development, authorizing them to do all
lawful acts, deeds, matters and things pertaining to the development of the said property
and for the said purpose to approach the authorities including the Municipal Corporation of
Greater Mumbai and the authorities appointed under the said Act, or any other law and for
doing all acts, deeds, matters and things to be done or incurred by the Developer in that
behalf as also to sign all letters, applications, agreements, documents, court proceedings,
affidavits and such other papers containing true facts and correct particulars as may from
time to time be required in this behalf. The Developers hereby agree and undertake to
execute and cause the persons in whose favor the Owner shall execute a Power of Attorney
as aforesaid a proper Deed of Indemnity in such form as may be required by the Owner
thereby indemnifying the Owner and all persons claiming under him and his respective
estate and effects, of from and against all actions, suits, proceedings, claims, demands,
costs charges and expenses that may be taken or made by any one claiming under him or
that the Owner or any one claiming under him and may be liable to pay suffer or incur on
account of anything done or caused or committed or omitted to be done by the Developers
or the person in whose favour a Power of Attorney hereby contemplated is executed by the
Owner and that the said Indemnity shall continue to remain in full force and effect

throughout for anything done or caused or committed to be done by the Developers or such
persons the Power of Attorney is executed during the tenure of the said Power of Attorney.

The entire development work shall be carried out by the Developers at their own risk, costs
and expenses. They shall bear and pay the Bills of the suppliers of building materials, wages
and salaries payable to the workmen and other persons employed for the purpose of
carrying out the constructions work as also all other costs, charges and expenses that may
be incurred in regard to the development work. The Developers shall also save harmless
and indemnify and keep indemnified the Owner against any claim that may be made by any
one against the Owner on account of the Developers carrying out the said development
work. The Developers shall specifically ensure that the workmen employed for the purpose
of carrying out the development work are insured under the workmen’s compensation Act.
The Developers shall upon payment in terms of Clause 2(b) above be entitled to proceed
with the development of the said property and commence construction on the said property
and also to allot on ownership basis the premises in the buildings or structures to be
constructed by the Developers on the said property or in any part of the said property to
the prospective purchasers and for that purpose to enter into in their own name
agreements or letters of allotment or such other writings or documents for sale of
Flats/Shops/Garages etc. in the said property and to receive and retain with them all the
moneys from the persons to whom the said premises are sold or allotted and to appropriate
the same in such manner as the Developers may deem fit. All the moneys which shall be
received by the Developers from such persons shall belong to the Developers and will be
received by them on their own account. The Owner shall also not be liable or responsible to
any such persons so far as the said moneys are concerned either for refund thereof or for
any mis-application or non-application thereof or part thereof. This provision shall be
specifically brought to the notice of all such purchasers, tenants, lessees, licensees etc. in
the agreements or letters of allotments entered into or passed to them.
The Developers will be entitled to modify the approved buildings plans as they deem fit
provided the modifications are within or as per the provisions of approved scheme laid down
by the Competent Authority. The Developers shall pay all the fees of the Architects, and
R.C.C. Consultants appointed by them for the development of this project. It is agreed that
while appointing Architect and R.C.C. Consultants the Developers shall procure in favour of
the Owner writing that they shall not look to the Owner for their fees or otherwise.
The Developers shall in the course of erection and completion of the said buildings do all
lawful acts and things required by and perform the works in conformity in all respects with
the provisions of the statues applicable thereto.
The Developers shall not at any time cause or permit any public or private nuisance in or
upon the said property or do anything which shall cause unnecessary annoyance,
inconveniences suffering hardship or disturbance to the Owner or to the occupants of the
neighboring properties.
The Developers shall be entitled to form and register a
co-operative Society/Association of persons and/or a limited company of all the purchasers
of various premises in the newly constructed building and shall also admit/accept the owner
as member/shareholder of the same.
The Owner shall pay all outgoings in respect of the said property till the date of demolition
of the existing old building and thereafter the same shall be paid by the Developers.
The stamp duty and registration charges, if any, in respect hereof shall be borne and paid
by the Developers.

THE SCHEDULE ABVOE REFERRED TO:
(Give detailed description of the land and the building)

SIGNED AND DELIVERED BY THE )
Within Named OWNER XYZ, )
in the presence of )

SIGNED AND DELIVERED by the )
Within Named DEVELOPERS )
M/s. ABC & CO. a partnership firm by the hand of )
its’ Partner ABC in the presence of …………., )

RECEIPT

RECEIVED the day and year first herein above written of and from the within Named Developers
the sum of Rs. _/- (Rupees ______ only) by cheque No._
dated _ drawn on ___________ being the agreed amount to be paid by
them to me as within mentioned.
Rs. _/-

I SAY RECEIVED

WITNESSES:

OWNER
2.

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Development Agreement of Immovable Property

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