• How construction agreement related

Hi Team,

I am entering into house construction agreement with local house contractor. 
I needed advice on few points.

1. Contractor is asking to put his and his wife's name in agreement as "building contractor" and he will take payments in the name of wife/in her account only. Is this okay? 
2. Should the agreement be made "registered agreement" or only "signing in front of notary" is good enough? I would like to add more safety net for this from legal perspective.
3. How many witnesses I need? I have added signing space for 2.
4. In general how should I make agreement more useful from future legal safety perspective.
5. Is there a service on KAANOON.COM to get document vetted on a high level?

Thank you.!
Asked 1 month ago in Property Law
Religion: Hindu

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12 Answers

1) don’t make full payment in wife name 

 

2) notarised agreement should suffice 

 

3) 2 witnesses are sufficient 

 

4) get agreement vetted by any lawyer from this website 

 

5) you can make payment directly to lawyer 

 

6) obtain contact details of lawyer from the website 

Ajay Sethi
Advocate, Mumbai
80471 Answers
4927 Consultations

5.0 on 5.0

1. Let said Wife's name be first in the Agreement and THEN make payment in her name.

2. ANY type of Agreement must be duly stamp duty paid and registered, for it to be legally enforceable, during times of dispute. You may prefer to contact me for your legal requirements.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Hemant Agarwal
Advocate, Mumbai
5541 Answers
25 Consultations

5.0 on 5.0

Following clauses should be made in clear terms. 

Time completion period with stage wise completion. 

Progressive payment clauses. 

Time is the essence of the contract must be written. 

Clear terms of compensation for any delay in completion. 

Clear term under what circumstances contract can be rescinded. 

Arbitration clause if you want to avoid litigation. 

Advance payment and security clauses. 

Quality of work as per standard specification. Can here refer CPWD specification. 

A joint measurement clause. 

Clearly define force majuere condition. 

Clearly mention the defect liability period. 

For proper safety bank guarantee can be taken for any advance payment and for security deposit. 

Retention money clauses to release retention amount  after successful completion of defect liability period. 

It better to draft the agreement by any lawyer. 

 

Other general point. 

Agreement need not be registered. Make it on stamp paper. May be get it notarized. Witness by one or two is good. 

Payment can be made to any one. Clear authorisation to this effect shall be made in agreement. 

Further now after RERA, you can adopt necessary format of RERA agreement suitability. 

 

Kallol Majumdar
Advocate, Kolkata
2792 Answers
4 Consultations

5.0 on 5.0

1) Need to review whole agreement all clause and what are terms and conditions.

2) You need to get this document registered along with two witnesses.

3) I can prepare agreement strongly legal points which will benefit to your in future and currently as well.

Ganesh Kadam
Advocate, Pune
11850 Answers
116 Consultations

4.9 on 5.0

1. Check whether contractor us a firm or not. If no then without written authority don't send money in one account only. 

2. Better register it.

3. 2 witnesses is enough. 

4. Take professional help of an advocate to protect your interest.

5. Yes. You can contact. 

Devajyoti Barman
Advocate, Kolkata
21980 Answers
325 Consultations

5.0 on 5.0

1. Please ask the contractor reason for the same. Are the contractor and his wife constituted into any kind of legal entity like a partnership firm or AOP ?

2. if the contractor is going to only construct a house on your plot for your private use without there being any element of sale of units in the proposed construction to third parties, then registration is not compulsory

3. 2 are fine for both the parties i.e. 2 witnesses each for both the parties

4. please make it as simple as possible and take assistance from a competent lawyer. Have proper timelines with default and exit clauses. Ensure security by asking for a performance BG from the contractor

5. you have to select any lawyer of your choice from the panel of lawyers on this site, fix an appointment with that lawyer, pay his professional fees and assign him/her the work 

Yusuf Rampurawala
Advocate, Mumbai
5908 Answers
42 Consultations

5.0 on 5.0

Hello,

  1. As long as the names of both of them are in the contract it is safe to make payment to either of them as each of them is individually and severally liable for the performance of the contract and can be held liable legally for any failure to so.
  2. It is advisable to get the Agreement registered as it has a better stamp of authority. It involves charges for registration though.
  3. You need two witnesses.
  4. To make it more secure and binding on the contractor, you must include clauses regarding liabilities, damages for the contractors in failing  to discharge his side of the contract.
  5. Yes, you can avail the service by paying a fee.

S J Mathew
Advocate, Mumbai
3114 Answers
125 Consultations

5.0 on 5.0

1. If the contractor's wife is not a qualified person to construct the house nor is a owner of the construction firm being run by the contractor, it would be better that you avoid such requests from the contractor and insist that the construction agreement contract shall be between the contractor and the house owner alone and not with a third person and also the payments can be made on the authorised contractor alone.

Do not entertain any such request because in the event of any litigation in future in this regard, you may have to tackle  various flaws like this while facing trial  of the case which would weaken your case or defense.

 

2.  Even an unregistered  and notarised construction agreement is valid in the eyes of law if produced as evidence, however it cannot be enforced in law if it is an unregistered agreement 

 

3. Two witnesses would be sufficient

 

4. It would be better that you get this agreement by a registered document so that it an be enforced i court of law in case of any dispute in this regard in future.

 

5.  you can get the document vetted by an advocate of your choice from this forum by contacting them over their personal phone number on his or her terms.

You can engage the services of an advocate separately because this is an additional service that you seek.

T Kalaiselvan
Advocate, Vellore
70524 Answers
985 Consultations

5.0 on 5.0

1. It is okay.

2. The agreement is not required to be mandatorily registered. Even an unregistered agreement will be a charter of rights and liabilities, thus enforceable at law.

3. Get the agreement drafted by a lawyer.

4. You can get the document drafted/reviewed here.

Ashish Davessar
Advocate, Jaipur
30295 Answers
879 Consultations

5.0 on 5.0

Hello,

1. Let them receive the payment/s jointly since they want both names to be mentioned.

2. and 4. An agreement which is duly registered before a Sub-Registrar/ Registrar has more legal value than an unregistered agreement. Notarized document may not be sufficient. For more safety as per your concern, you can include certain clauses in your agreement to keep yourself indemnified. Inclusion of certain clauses/terms and condition which may act in your favour from a futuristic point of view is always good.

3. Two witnesses are needed.

 

5. You can this website and access the services therein.

 

 

Salome R Dias
Advocate, Vasai Virar
15 Answers

Not rated

1. It depends on his nature of operation Whether proprietor, pvt Ltd etc. 

2. It's better to register the same. 

2 witnesses

You can contact me for vetting of the same

Prashant Nayak
Advocate, Mumbai
22962 Answers
49 Consultations

4.4 on 5.0

1. What is the name of the company/Firm that is developing the land? Does it include the name of his wife therein? If not then the agreement including his name as the developer along with him will be meaningless since she is not developing the land. You shall have to execute the agreement in favour of the company who is developing the project.

 

2. It will be prudent if you register the said agreement.

 

3. You require two witnesses from your side to sign the agreement as witnesses.

 

4. You shall have to draft the agreement very carefully. Engage a local lawyer having expertise in this field.

 

5. Kaanoon had this service which has been discontinued from this month and made direct from the client to the Advocate by making the payment directly. The charge for examining and vetting the agreement will vary from lawyer to lawyer. I charge Rs.10 K for rendering the above service.

Krishna Kishore Ganguly
Advocate, Kolkata
25047 Answers
722 Consultations

5.0 on 5.0

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