Can we sign the “Developer agreement”, take our share of payment and at the same time sign “a Mutation” for Municipal Corporation in Kolkata, giving our half of the property to our cousin, making our cousin the sole owner? In the Development agreement is mention that: You can enter into an agreement with the developer on the development and share holding agreement but authorising your cousin to be the sole owner is not an advisable idea. 1. We agree to entrust to the “developer the development to exercise the rights, powers, privileges and benefits of the Owners by executing a “Power of Attorney in its favor.” - What does it mean? If the Developer is like the Owner, what is our position in this? - Can we be accused if an accident happened during development? - If the tenants file a case – who will be responsible in court? - Is it so that a “Power of Attorney” for a developer has no end? By an agreement made between the developer and the owner, the developer no doubt will appear as a developer cum seller in the eyes of buyer whereas he will doing them as a power agent and not as a owner. The ownership rights still remain with the owner whereas owing to the POA deed in effect, the owner cannot effectively take over the property because he has executed an irrevocable POA deed which is irrevocable due to the conditions suitably drafted by the developer in his favor who has invested huge money in this project. If an accident occurs no doubt the developer can be held but the owner also shall be held liable. It is similar case in the event of any litigation too. 2. “The construction should be completed within 3 years and that will be the essence of this agreement”. What will happen if the construction is not made within 3 years? The developer may come with different reasons if he his not completing the construction within the time stipulated, You have legal options also for that. 3. “the Owners (we) themselves or through their agent shall sign and execute the Deeds of Conveyance in favor of the purchasers of flats/spaces …” We can say nothing, just sign and even if nothing is mention in the agreement the Developer will sell of the flats and take the money. Can this be a problem for us? The developers have procured the prospective purchasers and the buyers have already agreed to the conditions of sale, so as a owner you just have to sign deed of conveyance in favor of the purchasers. You need not worry about the other conditions which shall be taken care of the actual seller, i.e., the developer. 4. Nothing is mention about mutation and ending of selling of flats in the property. So we can remain owners for a lifetime? Mutation records do not confer title to the property, hence once you sold the property, you cannot claim ownership of the same. If the mutation is not done, then why do you worry about it, the new approach the developer who will arrange for mutation and subdivision of the property once the entire construction is completed.