• Developer agreement clauses

Dear Madam/Sir,
My father has purchased land (total area - 20 decimil) jointly with one other person in district – bokaro, Jharkhand in the year of 2011 with an objective to develop residential flats where as one developer/real estate builder offered to develop and construct as its own cost a multistoried stories building complex and offered to my father for providing two flats (each of area is around 1200 square feet of his own choice of floor against land transferred to developer). Further as per agreement; developer has built of residential building and allotted one flat to my father and said that another one will be provided as and when construction will get completed.
Now for the 1st flat provided by developer; further developer approached us EXECUTING DEVELOPMENT AGREEMENT between by father and Developer and accordingly he has share one draft development agreement of there with us saying that same agreement will be executed for us. As we have referred development agreement and observed some clauses which gives discomfort to us. Below are the major clauses for your kind references and seeking you advice on that:
1.	That apart from land owner (my father) non else is/are entitled to or has any share, rights title or interest over and in respect of the said property or any part there of either individually or as a partnership or co-partner in any joint family or in any manner whatsoever.

2.	That the land owner (my father) declare that he has not agreed, committed to or contracted or entered into agreement for sale, lease or any mode of transfer effectively either directly or indirectly the development of the said property or any part thereof with any person other than the developer and that they have not created any lien, charge, mortgage or encumbrance on the said property.
What we understand from the said above clauses that the 1st clause stopping land owner (my father) to transfer the property (flat) to his sibling/hier/sons which means he (my father) can’t transfer his property (said flat) to his son.
Secondly; as the clause no -2; depict that land owner (my father) can’t sale and transfer the said property to other except developer which means only developer will have rights to purchase property which lead he is arresting rights of my father,
We are requesting you to suggest on said above clauses with what should be the right contents to insert there. Please also suggest on what to do with as the said developer also saying that he will keep original copy of developer agreement and provide us only photocopies which means that we have to depend on developers for accesses of all basic requirement as original copy required for verification and /or availing services (getting electricity connection; ID Cards, other govt benefits etc).
Developer has also not provided us copy of agreement for land transfer to developer and provision of two flats will be provided against that.
Please suggest on what should we need to do to deal with
Asked 7 years ago in Property Law
Religion: Hindu

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6 Answers

No the first clause is not stopping father from transfer of the property is just conveys that father now is sole owner of the property.

Further secondly the second clause says that there is no contract made it doesn't bar from.future transfer of the property.

Further in my view the clauses aresaresright it doesnot effect.fathers right.

Further for original, you can get true copy of the original documents those are with builder from notary for use of electric connection.

Further give a notice to builder to provide you copy.of the agreement.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

It would be better for you to take proper legal guidelines by showing complete files of your case to an advocate so that you can take a right path to handle your issues. Vague answers will not give you the exact relief .

Mohammed Mujeeb
Advocate, Hyderabad
19344 Answers
32 Consultations

Both clauses are fine

Clause 1 only says that your father is absolute owner of land

Clause 2 says that your father has not created any prior rights in favour of any person except the developer

Your father can execute DA in duplicate. So both parties can have the original 

Yusuf Rampurawala
Advocate, Mumbai
7904 Answers
79 Consultations

1) first clause means that father is absolute owner of the property 

 

2) second clause implies that father has not entered into any agreement with any other party for sake , mortgage etc of property and that father shall not create any third party rights for the property 

 

3) keep certified copy of agreement 

Ajay Sethi
Advocate, Mumbai
99879 Answers
8150 Consultations

1. Do not agree on the clause of  blanket bar on selling the property to another person and there may be an event of breach of the agreement which may entitle your father to cancel the agreement.

2. So make a clause where there would be an condition where in default by the developer the landowner can cancel the agreement and make a fresh agreement with another person.

3. Do take help of an advocate to redraft or vet the agreement so the interest of the landowner can be protected.

Devajyoti Barman
Advocate, Kolkata
23657 Answers
537 Consultations

The developer has to provide notarized copies of land transfer agreement and development agreement.

You can demand the developer to prepare the development agreement in duplicate to have each one citing the reasons as what you have mentioned.

Now, the clauses what you feel aggrieved about is because you have not perused the clauses properly and have incorrectly interpreted them.

Hence you have doubts on it.

There's nothing wrong or having any adversity to you by this clause.

Your father is not restricted to transfer the flats to anyone of his choice by the first clause as wrongly understood by you.

In the second clause your father after the execution of this development agreement, cannot sell or mortgage the land to a third-party.

 

Therefore there's no legal infirmity in them.

T Kalaiselvan
Advocate, Vellore
90079 Answers
2502 Consultations

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