This Agreement is made here at New Delhi on this ….th day of ………, 200…., between ………………………………………………….. through its…………………………………………………….. s/o ……………………………………… r/o ………………………………………………………., hereinafter called the Owner, the First Party and M/S ………………………………………, ……………………………………… through its Director ……………………………………… s/o ……………………………………… r/o ………………………………………………………, hereinafter called the Developers, Second Party.

 The expression of the terms Owner and the Developers, whenever they occur in the body of this Agreement shall mean and include their respective heirs, executors, administrators and assign unless and until is repugnant to the context or meaning thereof. Whereas the Owner is the recorded Owner and is in possession of plot No. ………………………………………………………………………………, admeasuring ……….. sq. yards, the leasehold plot which was registered as Document No. ……….. Book No. …….. Vol No. ……….. on pages from …….. to …….. dated …………………..

The property bounded as under :
EAST ….. Plot No. ….. WEST ….. Plot No. …..
SOUTH …. Road ….. ‘ NORTH ….. …..AND Whereas the Owner is desirous of erection of a super structure comprising of the basement, ground floor, first floor, second floor and terrace, according to the plans which may be got sanctioned from competent Authority in this regard but is not fully equipped to do so and has therefore approached the Developer which on being assured by the Owner that the said property is free from all sorts of encumbrances, attachments, charges, legal flaws, claims, demands, dues, notices, religious or family disputes, etc., and that the said property is self-acquired property, has agreed to cooperate with the Owner for construction of a super structure on the land beneath the said property, on the terms and conditions that are set forth hereinafter.Now this Deed Witnesseth as follows :

1. That the Developers have agreed to pay a sum of Rs. …………… (Rupees …………… only) as security for due performance of the terms of this agreement and success-ful completion of the project. However this security amount shall be adjusted against the consideration on completion of the building. The Developer has agreed to raise the superstructure of basement, ground floor, first floor, second floor and terrace on the land beneath the said property according to the building plans mutually agreed upon between the Owner and the Developers which may be sanctioned from the competent authority.

The said sum shall be paid in the following manner :

(a) THAT Rs. ……………….. (Rupees ……………….. only) shall be paid at the time of signing the agreement vide Chq No. ……………….. dated ……………….. drawn on …………………….. Bank …………………………………..

(b) THAT the further sum of Rs. ……………….. (Rupees ……………….. only) shall be paid to the Owner by the Developer at the time of handing over the physical possession of the said property after the Developer has got sanction of plans or before ……………………….., whichever is earlier for the limited purpose of development and construction of the said project. The physical possession for the Developer’s portion shall automatically vest with the Developer on completing of the building.

(c) That the Developer shall pay beside a sum of Rs. ……………….. (Rupees ……………….. only) already paid, a sum of Rs. ……………….. (Rupees ……………….. only) to the Owner on completion of the building and at the time of signing of all necessary sale documents in regard to the first floor and second floor, to make the total consideration of Rs. ……………….. (Rupees ……………….. only).

2. If the Developer defaults in payment of any payment on the due date, the Owner will be entitled to terminate the agreement and to forfeit all moneys paid hereunder. On such termination, the licence to develop the property will be revoked and the Developer shall take away and remove within one month of such termi-nation, all buildings, structures and materials brought on the property and in default thereof, the same shall belong to and vest in the Owner absolutely and the Developer 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 Developer and extend the time for payment if the Developer pays interest at the rate of ……….% per annum on the defaulted installment provided that the Owner shall before terminating this agreement as aforesaid, make a demand in writing for payment of the said sum on the Developer. If the Developer pays the amount due to the Owner with interest within ………. days of receipt of such demand, then the Owner shall not be entitled to terminate the Agreement under this clause.

3. The Owner shall sign the necessary documents to enable the Developer to obtain all necessary permissions and sanctions as may be required.

4. That the Owner has executed attorney(s) by separate documents in favour of the Developer for submitting the applications, requisitions to the various authorities for obtaining permission, approvals, sanctions, allotment of building or other materials and concerning other matters required statutorily to be done and required in connection with the construction and completion of the said dwelling units/floors on the said property. However the Developers undertake not to cause to be done any act deed or thing which may in any way misuse, contravene any rule, law or regulation or to misuse the powers which may be conferred upon the Developers by the Owner to construct super structure as stated herein above on the land beneath the said building as per agreement.

5. That in the meantime till such sanctions and permissions are forthcoming, the Developers shall have the suitable plans prepared for the proposed residential building at their cost and the concurrence of the Owner shall be obtained with regards to final submission of plans.

6. That the entire cost of construction of the new building including cost of material, labour and the charges for time extension for construction from Delhi Development Authority on above said plot and expenses for clearance from Urban Land Act and fee of the architect and others charges shall be borne and paid by the Developer.

7. That the construction shall be that of specifications, detailed and described in Annexure 1 attached hereto. That the Developers shall utilise the full F.A.R. available in respect of the property to be developed.

8. That the property tax till the execution of this deed shall be payable by the Owner. Any property tax payable thereafter shall be the liability of the Developer and shall be paid by the Developer till the flats are ready in all respects.

9. That the Owner gives licence and permission to the Developer to enter upon the said property with full right and authority to commence, carry on and complete development thereof, in accordance with the permission & terms herein mentioned. The said licence to develop the property will be personal to the Developer and under no circumstance the Developer will assign his title, right and interest to any other
party, except with the prior written consent of the Owner. However the Developer shall be entitled to enter into separate contracts in his own name with building contractor, architect and others for carrying out the development at his own risk and costs.

10. That the dwelling units proposed to be constructed by the Developer shall be owned and possessed by the parties exclusively as under :

(a) Owner shall own and possess basement and ground floor and two car parkings and two servant quarters with attached toilet of the said property with rear terrace for exclusive use and exclusive complete Ownership right of construction on second floor terrace (i.e., third floor) and right to all future FSI/FAR and right of construction on third floor if permitted by the bye-laws in future, in that case the Owner construct the water tanks & servant rooms on third floor terrace at their/his own cost/fund with 50% undivided land rights of total plot measuring ………… Sq. Yds.

(b) The Developer shall own and possess first floor, second floor, two car parkings and two servant quarters along with toilet and front terrace for exclusives use, in case of construction of third floor, the Developer/buyers have rights to use front terrace of third floor terrace with 50% undivided land rights of total plots measuring ………… Sq Yds.

(c) It is hereby specifically mentioned that the parties hereto shall be free to sell transfer and/or mortgage, assign or part with the possession of their respective portions at their own risk and account without any objection from the other party and to receive, accept any consideration, money in regards to above property and to issue receipt of full or partial payment. Each party shall have rights to negotiate his respective portion with common facilities to any intending purchaser.

11. The Owner agrees to execute, sign and deliver the document which might be required for conveying first floor and second floor of the said property in favour of the intending purchaser or nominee of Developer as a confirming party when the construction has been completed by the Developer and full consideration has been paid to the Owner. It is hereby specifically mentioned and agreed that the Owner shall not claim any remuneration for execution of the aforesaid documents and all the expenses whatsoever for the transfer of the first floor and second floor of the said property shall be borne and paid by the Developer/his nominee(s)/intending purchaser(s).

12. That the building shall be completed and finished in all respects within ………… months and the first party’s share of property will be handed over to them within …………months from the date of sanctioning of plans/handing over the vacant possession of the plot for development, expect for reasons beyond second party’s control such as strikes, war, riots and natural calamities and due to any unforeseen circumstances like drastic changes in laws and hindrance caused by concerned authorities (M.C.D./D.D.A.).

13. If the Developer fails to complete building and fails to deliver basement and ground floor within stipulated period of ………… months then Developer shall be liable to give a sum of Rs. ………… (Rupees …………………… only ) per month to the party as compensation penalty.

14. That except as herein before provided, the Owner shall not interfere with or obstruct in any manner with the construction of work for the said residential flats. However the Owner or his nominee or nominees shall have free hand and unfettered access to the construction site at all reasonable time and he shall be free to point out to the Developer or their agents, subcontractors or administrators and the Developer shall rectify such defective construction, workmanship or use of inferior materials.

15. That this agreement shall not to be deemed to constitute a partnership between the Owner and the Developer or an agreement for sale of the plot by the Owner to the Developer and shall not be deemed to bind the parties hereto expect specifically recorded herein. The Developer shall solely be liable and responsible for any liability in connection with the construction of dwelling units in the land beneath the said building. The Owner and the Developer shall be solely responsible from the date of possession for various expenses, taxes such as water charges, property tax, electric bills in respect of respective portions as mentioned aforesaid.

16. In case there is any accident in the aforesaid construction project, the Developer shall be fully responsible for all the consequences of the same under the Workmen Compensation Act or any other acts in force. If the Owner is ordered to attend a court or is requested or his presence is required by any other authority in this connection, he will empower the Developers to attend the court/authority concerned on his behalf and the Developer agrees to compensate the Owner fully in case an adverse order is passed or any compensation is ordered to be paid by the Owner by any court, judicial authority or any other competent authority.

17. That all costs of stamping, engrossing and registration of this agreement and any other paper relating to this agreement shall be borne by the Developer.

18. That during the course of construction all building materials and equipment used or to be used shall remain at the Developer’s risk and the Developer shall not be entitled to any compensation from the first party for any damages, loss or destruction of such works or material or equipment arising from the any cause whatsoever.

19. If until the completion of building any case damage or harm occurs to the adjourning properties, neighbours, the Developer shall be fully responsible for all the consequences.

20. That the Owner has declared and assured the Developer that property is free from all sorts of encumbrances, i.e., mortgage, charges, gifts, wills, exchanges, attachments, injunction notice prior agreement to sell/collaboration agreement and shall also keep the property free from all sorts of emcumbrances till the completion of the building, sharing of the respective portions in the new building and registration of their respective portions.

Whatsoever if it will be ever proved otherwise, first party shall be liable and responsible for making good all losses, which may be suffered incurred, undergone and sustained all by the Developer as a result thereof.

21. That no change modification or alterations to this agreement shall be done without the written consent of the Owner and Developer. The parties hereto undertakes not to contravene any of the terms of this agreement.

22. That the Developer shall be responsible for any eventuality or consequences arising out of the structural defects. Appropriate remedial measures to rectify such defects or remove such irregularities at the earliest shall be taken. The Developer shall also apply and obtain the C&D forms, electricity, water and sever connections, etc., from the competent authority/authorities concerned at his cost.

23. That as and when house tax gets assessed the Developer undertakes to pay for his share that is the basement and ground floor at the rates applicable.

24. That the Owner shall hand over all the original documents of the property to the Developer at the time of execution of this collaboration agreement. The same shall be returned back to the Owner on completion of the construction and possession of the Developer’s portion to him.

IN WITNESS WHEREOF, the parties hereto have set their respective hands on these presents on the date, month and year hereinabove first mentioned. In the presence of the following witnesses :


Specifications for Plot No. ………………. andList of Fittings and Fixtures

1. Brick Work – Bricks work
in cement mortar in super structure in 1: 6 (1 cement : 6 sand). Half bricks masonary in cement mortar (1:4/1 cement and badarpur sand) with 1″ × 1/16″ hoop iron at every third course, 2″ thick brick tiles work shall be in 1:3 mix, cement, badarpur sand) with 1″×1/6″ hoop iron at every third course in steps in cement mortar 1:3 (1 cement badarpur sand).

2. R.C.C. Work – R.C.C Work 1:2:4: work (1 cement: 2 stone dust: 4 graded stone aggregate nominal size) in columns, beams, linteless, slabs, lofts, chajjas, shelves, staircase, etc., including centering and shuttering and rendering the exposed surface in cement mortar 1:4 (1 cement : 4 fine sand) steel for R.C.C. Work shall be of tor steel or steel as per structure design.

3. Flooring – All the flooring in living room, bed room, kitchen, bath room, lobby and stair cases will be provided with white marble stone with brass patty.

4. Toilet – Coloured tiles will be provided on the walls of bathrooms up to full height with exhaust fans.

5. Bedrooms – Each bedroom will be provided with one built in wardrobe cupboard, doors will be provided with sunmica/syntax material of suitable shade. Master bedroom shall have a dressing room with built in wardrobes.

6. Doors and Windows – The doors and windows shall be made of teak wood, chowkhat will be made of champ teak, anodised brass fittings tower bolt and handles and Godrej locks shall be fixed to doors with handles. Eyes and chain shall be provided on the main door. Iron grills to be fixed on basement and ground floor.

7. Kitchen – Kitchen will be provided with an exhaust fan. Working slab be provided of granit on top, the edges of which shall be leveled/rounded and polished. Staircase link shall be provided. Teaks frames with commercial shutters or 3/4″ commercial board shall be used for kitchen making cupboard under the slab and sunmica front shall also be done 1″ deep cupboards above the slab on one side of the wall shall be provided. Spartek tiles up to 5 shall be provided in dado. One stand for plates and cups etc.

8. Plaster – 3/4″ thicks plaster in cement mortar 1:5 (1 cement 5 Jammu sand) inside and rough plaster outside shall be done.

9. Finish – Base to be made of French Chalk. Oil bound distemper with final coat of Plastic emulsion, oil bound distembper on ceiling, etc., synthetic enamel, spirit or wax polish to doors, windows, cupboard, kitchen cabinets, etc.

10. Sanitary Work – Colour sanitary work with round oval height basin towel rod, toilet paper holder, shower hot and cold water mixer, tape hooks, etc., looking full length with 2″ height with frame glass over wash basin and cupboard will be fixed in the bathrooms under the wash basin. All fittings will be parko or equivalent. Concealed Stop cooks to be provided in each toilet. Rain water pipes of 4″ dia CI pipes including all fittings and lead joints as also the entire G.I. pipes lines, overhead RCC tanks coated with food grade epory shall also be provided and also sanitary works in the bathroom which will be in colour and with hot and cold water arrangement and chromium plating of Parko make shall be provided in the, bathrooms with one Acrylic bath tub of approved quality and design in one of the bathrooms in each unit. Sanitary ware will be of Parry/Neycer make.

11. Electrical Work – Light points, light plugs power points, call bell points, switches visitors call bell, phone, foot lights, light points telephone lines, intercom/conduit telephone and T.V. antenna circuit to be laid as per drawings. 1″ dia PVC proconduit pipe of 16 gauge to be used for all electrical lines and ISI approved make wire to be used for power and light points, make to be approved by Owner prior to fitting. The distribution board and main board with circuit breaker shuters to be provided. Provision to be made for 3 phase (minimum 11 KW load) wiring and also for all floors, gates lights and canopy lights and outside lighting to be done as shown in drawing. Charges for cables and electric connection shall be borne by the Developer and provide tube lights or incandescent lamps and other light fittings on wall brackets, lobby kitchen, canopy and one chandelier in the drawing room will be provided in the flat. All light fitting, etc., as mentioned above to be approved by the Owner, brand of switches/regulators MCB, etc., to be stated.

12. Cromption ceiling fans 48″ in bedrooms and 56″ in drawing dining room will be provided. Geyser 25 litres will be fitted in each bathrooms. One Geyser, ceiling fan and exhaust fan will be provided in the kitchen.


More Under Finance

Posted Under

Category : Finance (3419)
Type : Articles (13990)
Tags : Government Policy (1791)

24 responses to “Format of Development Agreement with Builder”

  1. vijay Barve says:

    Developer was not ready Give the bank Guarantee so How Can Society secure Was after the demolition of the chawl or plot.

  2. Narendar says:

    It was very useful to builders and as well as land owners , change some changes of above format, if any persons to interest to give devolpment in telangana state ( warangal and hyderabad )

  3. gurumohanreddy says:

    i want developars at nellore city in a.p state my contact number 9966000334

  4. Gayathri says:

    With material electrical contractor agreement b/w electrical contractor and land developers

  5. Gayathri says:

    with material Electrical agreement B/W Electrical contractor and land developers

  6. sreenivas says:

    POA is provided. Agreement is to build residential apartments. Say owner 35% and Developer 65%(D) The land is owned by a private limited company and Developer is also a private ltd co. D needs and insists on security and personal guarantee from Individual directors towards advance. Further D proposes to raise Bank finance for which owner co., is required to offer its land as security. For the advance D provides it wants interest. What is the point of capital gains taxation: Sec.2(47) of IT Act- Sec.53A- Deemed transfer. How to safeguard the Owner co., against possible liabilities or losses

  7. Nikunj Thakkar says:

    Its very helpful but need to changes some T&C according to the new rules
    Nikunj thakkar
    Krishiv infotech.

  8. varun bapardekar says:

    Well i have an qts what will happen if the agreement has expired and will have to create a new one will all the details about the contract change or will they b the same as the previous contract ..

    Cant we make any changes in the new contract like the increase in the fsi according to the new rule ..?? Plz ki dly reply…

  9. Sangeetha says:

    I want to know what are the legal implications if the development agreement between the builder and developer is not registered. And whether can it be regularised now with payment of penalty?

  10. manish bhatt says:

    I want know the agreement not registerd or notariesed its on 50 rs stamp paper
    Then builder left project the n what is solution

  11. manish bhatt says:

    If builder left the project then what is solution

  12. manish bhatt says:

    If devloper left the project then what is ……. solution

  13. Rex says:

    I have found,this article very empowering.I am a
    Developer in Zambia,Africa and it will
    go a long way in my work.

  14. samir says:

    my questation is i want to enter in the contract with publice trust. so please reply reply some important points which is necessary in development agreement.

  15. Baidyanath Dutta says:

    My Company is developer and they always sold there Flats along with the Car park area for this they also collecting separately cash on car park along with flat from unit holders. This car park is includes both covered and uncovered car park. My query is – will service tax is apply on Car Park area or not ? secondly if service tax will apply than what rate will be apply on it?

  16. Baidyanath Dutta says:

    My Company is developer and they always sold there Flats along with the Car park area for this they also collecting separately cash on car park along with flat from unit holders. This car park is includes both covered and uncovered car park. My query is – will service tax is apply on Car Park area or not ? secondly if service tax will apply than what rate will be apply on it?

  17. Kapil says:

    Dear Sir,

    Im purchasing a property at Mira Road. The building has O.C bt the Development agreement is not registered. The building is 2 Year Old with full occupancy. Please suggest whether it is safe to buy flat in this building.

    Regards, Kapil -09769330993

    • CA Sandeep Kanoi says:

      Purchasing house is once in life time decision. In my opinion you should buy property in a building which have both OC and CC.

  18. harpreet says:

    kindly inform what documents are required from the owner who is selling his floor after making the development agreement with the builder.

  19. Yashwant Ingole says:

    Very nice wellworded draft. Thanks. I have a query, if you can kindly reply.

    The development agreement is between the owner and the builder/developer. By the said agreement the owner has received full consideration and the builder can sell the building. Besides the development agreement, the developer had also obtained usual Power of Attorney. Now the owner has died. In my opinion, when the full consideration was received by the owner at the time of executing the agreement, there was no necissity of obtaining the POA. It was virtually a sale of the property. As per the POA the owner will be the confirming party to the sale deeds. In this circumstances, whether the transactions by the builder will get affected? …. Why it is a usual practice that when the title is absolutely transferred by way of development agreement, the POA is also taken.

  20. Shreyas HR. says:

    This is wonderful format but u have to add some more T&Cs. Which will helpful to others, thx. From:Shreyas, solicitor, Bangalore.

  21. Anand Modak says:

    Thanks for your information available for upcoming generation.

  22. Baljit singh says:

    thanks friends this page is very helpful for my 1st year assignment

Leave a Reply

Your email address will not be published. Required fields are marked *