Development Agreement

A Development Agreement is entered into between the property owner and the builder which determines the terms and conditions on the basis of which a property owner assigns his property to the developer for construction of a residential or commercial building.

The primary object of executing a development agreement is to ensure that the landowner and the developer do not come into a conflict at a later date. Further, it also ensures that the development of the land is carried out in a manner that complies with the law.

Contents of Development Agreement:-

• The development agreement should specify the particulars of property such as location, boundaries, area, latitudes and longitudes, nature (agricultural/commercial/residential) etc. of the property
• The development agreement should also specify about  the proof of ownership of the property owner such as title deeds/ copy of khatedari etc. so that the legitimate ownership of property owner over the property may be established
• Proportion of sharing the flats/shops between developer and property owner after construction should be specified
• Manner of marketing the project should be detailed along with the role and responsibilities of developer for sale of property owner’s share in project
• Time limit for completion the project may also be included so that it may be assured that developer completes the project diligently within an appropriate time limit
• Responsibilities of the developer attached to the agreement and legal remedy to the property owner
• Unconditional right shall be assigned by the property owner to the developer for carrying out any development/construction activities over the land