• Development agreement with Developer

i  have a land as an asset, a developer is   interested to develop the same, would provide us 50 % of constructed area .  if by any  chance a developer doesn't complete the project due to following reasons
1) goes bankrupt 
2) because of any circumstances delays the construction and possession .

 following are my  question what  protection should i keep  each circumstance during my agreement

 1) can i go to consumer forum against the developer, since i am taking his service to develop my space?

2) What in case he die  half way or after agreement , what is my protection should i keep  in my  development agreement ?

I looking forward for your valuable feedback.


Asked 3 years ago in Property Law from Aurangabad, Maharashtra
1) you will have to move civil court in this regard . you have entered into development agreement for development of your plot for commercial purposes . hence consumer forum wont entertain your complaint .

2)is the developer an individual or company ? . better enter into development agreement with company . if developer is one man show you would get stuck as his legal heirs may not be interested in completing the project . in  case of company the project would be continued by the company even if one of the directors die 

3) get the development agreement drafted by a lawyer
Ajay Sethi
Advocate, Mumbai
44377 Answers
2577 Consultations

5.0 on 5.0

get the joint development agreement and power of attorney, both these documents duly registered in the office of the sub-registrar.
Include a clause for timely completion of the project by the developer (Could be also an individual), and in default the delay compensation payable upto an extended period (Grace period), even after that if the developer fails to complete the project, put in a clause that you can intervene and take over the unfinished project and hand it over to another developer.
Most importantly take a refundable security deposit (equivalent to 50% of the land cost) from the developer at the time of signing of the Joint development agreement.
these measures must safe guard your interest and help you achieve your objective as well.
get both the documents duly checked and ratified by a local lawyer by providing him these tips.
Kiran N. Murthy
Advocate, Bangalore
987 Answers
86 Consultations

5.0 on 5.0

1. To be traeted as a consumer you shall have to establish that you have taken the service of the developer for commercial gain and this is your sole earning for lively hood,

2. In the above case it is impossible to establish that you are a consumer for which your case will not be admitted by Consumer Forum,

3. You shall have to file Civil Suit against the Developer,

4. Your development Agreement should cover all eventualities including death of the developer,

5. Engage a lawyer having expertise in this field.
Krishna Kishore Ganguly
Advocate, Kolkata
18161 Answers
438 Consultations

5.0 on 5.0

Dear Client,
You can file consumer case against the builder, if there is no clause of arbitration . There is land mark cases held before consumer courts between developer builder and land lords.
Mohammad Khaleel Ahmed
Advocate, Hyderabad
184 Answers
1 Consultation

4.5 on 5.0

1. A joint development agreement will have to be entered into by you with the developer. The rights and duties of both of you will have to be clearly articulated therein. Get the agreement drafted by a lawyer to be on a safer side as you cannot make the developer liable for something which does not find a mention in the agreement.

2. If the developer does not honour the agreement then you would have to move the court of District Civil Judge. Consumer forum cannot be moved as you will not be awailing the services of the developer. The agreement you will be making will strictly be for commercial purposes. So consumer forum is not the appropriate forum to se ek redressal from.

3. The rights which you can enforce in the event of the death of the developer will have to be incorporated in the agreement itself. Before making a joint development agreement with the developer you should ascertain if he has  assets sufficient to compensate you for any loss incurred by you as a corollary to his death. If he does not have sufficient assets which can be attached/sold towards compensating you for the breach of agreement in the event of his death then no clause in the agreement will come to your rescue.

4. Carry out the due diligence through a lawyer.
Ashish Davessar
Advocate, Jaipur
22966 Answers
631 Consultations

5.0 on 5.0

Yes you can approach for deficiency of services in the consumer court
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultation

4.5 on 5.0

1.yes, u can file consumer complaint in CF against developer

2.mention in the agreement that in case of death of developer his legal heirs will be liable for his liabilities.

3.take help of local lawyer for making said agreement so that all legal points are covered properly.
R.K. Nanda
Advocate, New Delhi
457 Answers

4.7 on 5.0

1. you should get executed development agreement with company not with single person (developer).

2. agreement executed and claimed thereon, the proprty which is for commercial purpose doesn't provide consumer rights to person.
Brijendra Kumar Vishwakarma
Advocate, Kanpur
117 Answers

4.5 on 5.0

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