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.
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?
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.
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
They need to relinquish their rights in that property if they don't then after the death they can create problems
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
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.
So , lets say , B and C also enter as consenting party to our Development agreement along with mother of A ; Can there by any other complication if X dies , based on whatever stated above?
You would not face any legal complications if B and C also enter as consenting parties to your development agreement
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.
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.
What can be possible way from my view to get secured if, B & C are not willing to join as consenting parties and A still wants to gift his 40% share to X?
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.
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
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
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.
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.