• Development Agreement complication

I am executing develoment agreement with person A. 
A has two brothers B and C. 
X is father of A. 

The land property is ancestral to A. And A, B and C has entered into partition deed along with X and the property is clear title for A. 

Here is the twist. Before development Agreement A wish to GIFT the 40% property to his father X. And now X and A are jointly executing said development Agreement with me.

What can be possible risk in this? In case of demise of X, can B and C claim or create litigation?
Asked 7 years ago in Property Law
Religion: Hindu

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16 Answers

If the property is gifted to X then in that case if there is no will of X then B and C will have equal share over X share and they can file for claiming same.

Secondly the development agreement should be registered so that you are safe.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

hello.

Its OK but insist on taking no objection from the other heirs.

Regards

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

You will have to obtain a No Objection Certificate (NOC) from all the legal heirs.
Incase if (Father) X died without will then all legal heirs class1 have rights to claim in said property

Mohammed Mujeeb
Advocate, Hyderabad
19367 Answers
32 Consultations

They need to relinquish their rights in that property if they don't then after the death they can create problems 

Prashant Nayak
Advocate, Mumbai
34641 Answers
249 Consultations

Once gift deed is executed by A in favour of his father then father would be absolute owner of property 

 

2) on demise of X ie father his wife and children ie A,B,C would have equal share in his property 

 

3) they can claim share in property 

Ajay Sethi
Advocate, Mumbai
99952 Answers
8158 Consultations

This is my response to you:

1. Yes after demise of X, B an C can stake a claim on the property;

2. You must make X make a Will wherein all the property will go to A solely after his death;

3. Also register the Will;

4. Take a notarized affidavit from B and C stating that they will stake a claim on the property now or ever in the future;

5. Consult a lawyer and take steps.

Gowaal Padavi
Advocate, Mumbai
1919 Answers
5 Consultations

You would not face any legal complications if B and C also enter as consenting parties to your development agreement 

Ajay Sethi
Advocate, Mumbai
99952 Answers
8158 Consultations

No there wont be any other complication if the conversion of land is proper to NA and title is clear. The agreement shall bind on all legal heirs too. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Dear client, 

On his intestate death, b c and a will inherit and agreement shall be binding on them but possibilty of litigation cannot be negated.

Mother will also inherit share and at present they have no claim so making them party in agreement has no validity.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

See in case they are not consenting then in registered Joint development agreement amount to be paid in lieu of the agreement or share to be given should be specifically mentioned along with a clause wherein X and A sign that the agreement will be binding on there successors legal heirs. This will do protect your rights.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1) gift deed should be duly stamped and registered 

 

2) X can execute will bequeathinghis share of  property to A 

 

3) will should be attested by 2 witnesses 

Ajay Sethi
Advocate, Mumbai
99952 Answers
8158 Consultations

1. A can gift his 40% to his father X

 

2. Request X to make a Will of his property including the benefits which he would get under the development agreement in favour of A 

 

3. This will preclude B, C and mother from claiming in X' s property

 

4. but X may not agree to make such a Will 

 

5. In such a case even if A gifts 40% of his share to X, and X dies during pendency of construction under the DA, even then the legal heirs of X will be bound by the development agreement

 

6. whatever benefits are to accrue to X under the DA would then devolve on his legal heirs on demise of X 

 

7. Remember in any legal document, in the title clause, when parties are described, it is also made clear that the party also includes all his legal heirs, executors, administrator and assigns

 

8. so you need not worry whether A gifts his part or full share to X 

 

9. If you think practically there are chances that even A may die and his properties would go to his legal heirs

 

10. the legal heirs of a party to a DA cannot dispute or make any claim or stop construction unless and until they are not given the benefits as promised under the DA

 

11. So long as the developer honours his promise under the DA, there is no problem at all

 

12. I assume X is a Hindu, so if he dies intestate, then his benefits under the DA, would devolve on his legal heirs who are his mother, widow and children in equal proportions

 

13. obviously you must not release those benefits unless the legal heirs produce a valid Letters of Administration or a Probate, in case of a Will, from Court

 

 

Yusuf Rampurawala
Advocate, Mumbai
7918 Answers
79 Consultations

No issues. After gift X will become absolute owner.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

The legal heirs of either who dies shall be entitled to their respective share in the properties left behind by the deceased.

Therefore the legal heirs claiming their legitimate rights cannot be denied.

T Kalaiselvan
Advocate, Vellore
90153 Answers
2504 Consultations

Upon the death of X his share shall devolve equally on all his legal heirs.

This is besides the said legal heirs already a consenting party to the agreement.

T Kalaiselvan
Advocate, Vellore
90153 Answers
2504 Consultations

You should not be worried about B and C at this stage.

When such a situation arises, there can be solutions as well.

T Kalaiselvan
Advocate, Vellore
90153 Answers
2504 Consultations

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