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Development Agreement (15% off on the Total Bill)

What is a Development Agreement?

A Development Agreement is a legally binding contract between a property owner and a property developer or Government Institutions etc in which a landowner contributes their land for the construction of a real estate project, and the developer undertakes to legally obtain all approvals, develop the property, market and launch the project. The Development Agreement will clearly stipulate the contributions of both the parties and the profit division ratio.
A well-written Development Agreement assures that the landowner and the developer will not clash in the future. It also guarantees that land development is done by following the law and that statutory bodies do not interfere. In the Development Agreement, the landowner contributes his land and enters into an arrangement with the developer to develop and construct a real estate project at the developer's cost.

Why Development Agreement?

Compliance
The agreement can prescribe periodic reviews for compliance. This is helpful especially for site development standards such as landscaping or parking.
Protected
Allows the developer to obtain “vested rights” protected from any changes to existing zone or land use laws as per the state and country, during the term of the agreement.
Clearly Defined Roles
It clearly defines the contribution and roles of both the parties, so as to avoid any confusion from occurring in the future.

Documents / Details we need

Names and References
Identity Proof of the parties involved with relevant property developers details.
Sale Deed / Title Deed / Conveyance Deed
A Sale Deed or Title Deed establishes clear ownership before getting the Development Agreement.
RTC Extracts
RTC contains details of the extent of land in a survey number or a sub-survey number, It also includes details like the kind of soil/crop, any mortgages, charges made on the properties etc
General Power of Attorney
To establish whether the previous Sale or Purchase was carried out by an authorized person on Seller or Buyers behalf
Sanctioned Building plan
Sanctioned by the Statutory Authority to establish whether the property is authorized or unauthorized.
No Objection Certificate
Government approvals or NOC from key Government Departments such as pollution boards, electricity boards etc.

Important Clauses

Ownership and Permission
This Clause specifically defines the ownership division and structure between the landowner and the property developer. It also defines the permissions granted by the landowner to the property developer for the purpose of developing the property.
Transparency
This clause specifically provides complete transparency in terms of the floor area, building plan, quality of the materials used, design, method of allocation of funds, approval of grants, etc. It also defines the development rules and policies for the specified time period of the project.
Approvals and Grants
This clause specifically provides clarity on the methods of approvals of building plans, commencement certificates, and sanction plans, etc that are required for the development of the said project and other such necessary sanctions and permission from all the concerned authorities for the development of the project.
Profit-Sharing Ratio
This clause specifically defines the contributions and the Profit Sharing Ratios between the landowner and the property developer. For example, if the development pertains to a residential apartment the agreement will define the number of flats divided between the parties.
Force Majeure
This clause specifically defines that in the event of an Act of God or any other such event that is beyond the control of both the parties, in such an event none of the parties are liable for any event of a delay, damage or termination due to the occurrence of such an event.
Dispute Resolution
This clause specifically states the methods of resolving the disputes between the parties, if any, arise. It also clearly states the area of jurisdiction for resolving the disputes between the parties. The Dispute Resolution method can be via litigation or alternate/online dispute resolution at the will of the parties.

What's the process ?

1. Assessment
Our team will reach out to you to obtain the necessary information to assess the details of the property, the nature of the development and reason for such development, and all other necessary information.
3. First Ready Draft
We will complete the first draft of the Development Agreement and email it to you for approval within 48 hours. Following approval, any necessary adjustments will be made and submitted to you on the agreed next date.
2. Due Diligence and Drafting
Once we receive the information, we will begin drafting the agreement from scratch, such as mentioning the nature of the development, the parties to it, their roles and responsibilities, contribution among all other relevant clauses as required by the parties.
4. Final Agreement
With a high-quality team of professionals, the entire process of creating the draft and delivering the final copy of the Development Agreement as per your needs will be accomplished in 72 working hours.
1. Assessment
Our team will reach out to you to obtain the necessary information to assess the details of the property, the nature of the development and reason for such development, and all other necessary information.
2. Due Diligence and Drafting
Once we receive the information, we will begin drafting the agreement from scratch, such as mentioning the nature of the development, the parties to it, their roles and responsibilities, contribution among all other relevant clauses as required by the parties.
3. First Ready Draft
We will complete the first draft of the Development Agreement and email it to you for approval within 48 hours. Following approval, any necessary adjustments will be made and submitted to you on the agreed next date.
4. Final Agreement
With a high-quality team of professionals, the entire process of creating the draft and delivering the final copy of the Development Agreement as per your needs will be accomplished in 72 working hours.

Why choose us

PERSONALISED SERVICE

A dedicated Case Manager ensures quick turnout to all your queries and tailored solutions that fit perfectly for your requirements.

72 HOURS DELIVERY

All your drafting queries are addressed, understood, and delivered with quality under 72 Hours.

EXPERIENCED TEAM

Our team of dynamic professionals is well experienced and extremely proficient to cater to your needs, ensuring the best service.

24/7 HELPLINE

We are available to address and clarify all your queries round the clock. So you can worry less and focus more on the business.

Frequently Asked Questions

A contract in which a developer agrees to undertake a construction project with another party, which might be residential, commercial, or industrial in nature. Typically, the agreement will include cost, quality, and time commitments, as well as a provision for the transfer of a property interest.
In India, there is presently no requirement to file a development agreement. All such construction contracts issued to a developer are included in this category. However, depending on the state, a stamp duty of 4% of the property’s market value is levied, with a ceiling or maximum value of Rs. 4 lakhs.
Because the compensation is in the form of development rights, construction services given by a developer or builder to a land owner qualify as a supply under GST regulations. For every development agreement signed before or after March 31, 2019, developers must pay GST on the transaction.
The individual who enters into an arrangement with the landowner to develop and construct the property is known as a developer. A promoter, on the other hand, is the individual who advertises and promotes the property for sale to the broader public.

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