Collaboration agreement for construction of five floors with transfer of first floor rights
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MEMORANDUM OF AGREEMENT
This Agreement is made at Place of execution on this Date of agreement Between First party's name & First co-owner's name (first party), BOTH SONS OF LATE First party's father's name, RESIDING AT First party's residential address (hereinafter referred to as the "First Party") AND Second party's name, BEARING ADDRESS Second party's address (hereinafter referred to as the "Second Party").
The expressions "First Party" and "Second Party" shall, unless repugnant to the context, include their respective successors, legal heirs, nominees, beneficiaries, representatives and assignees.
The First Party is the absolute and sole owner of the property situated at Property address.
The said property is a single-storey building constructed on a plot measuring 150 square yards, and stands registered in the name of the First Party vide lease deed registered as document serial no. Document serial number of lease deed, Book no. Book number of lease deed, Volume no. Volume number of lease deed, at pages Page numbers of lease deed, dated Date of lease deed. The said property is a self-acquired property, purchased and constructed out of the own funds of the First Party.
And whereas the First Party now desires to complete the construction of five floors of the said property, including stilt parking without lift, at Full address of the property, so that the same may be used, let out, sold, transferred, apportioned between the natural heirs, or otherwise assigned or leased out, as the First Party may in its exclusive discretion and/or in the interests of the First Party or his heirs deem fit, so as to secure better and comfortable living in future.
And whereas the First Party has come into contact with the Second Party, who is ready to assist in accomplishing the said desire of the First Party. The Second Party has offered to finance the construction of the complete five floors with stilt, on the condition that the ownership rights in the complete portion of the first floor, together with one-fourth portion in the stilt area as marked in the drawing attached herewith, are given to the Second Party, who shall construct the entire five floors with his own funds. The said offer has been accepted by the First Party, and hence this Agreement.
NOW THIS AGREEMENT WITNESSETH AS UNDER:
1.That the Second Party shall construct the entire five floors of the said property and shall pay a sum of Rs. Consideration amount payable by second party (₹) to the First Party by cheque or bank draft, as full consideration for the rights granted to the Second Party under this Agreement in respect of the complete portion of the first floor, together with one-fourth portion in the stilt area as marked in the drawing attached hereto. The schedule of payment has been mutually agreed between the parties. All receipts executed from time to time shall automatically form part of this Agreement.
2.That the subject matter of this collaboration agreement between the parties is the construction of the property no. Property address, which is owned and possessed by the First Party.
3.That it has been mutually agreed between the parties that the Second Party shall construct the entire above-mentioned property out of its own funds, costs and expenses, within 15 months from the date of handing over actual, vacant and peaceful physical possession of the said property by the First Party, which shall be on or before Date of handing over possession. Along with such handing over of possession, a sum of Rs. Amount payable to first party on possession (₹) shall be paid to the First Party, and the Second Party shall pay to the First Party the monthly rent for a two-room set, for residential purposes, for the period of 15 months at the prevailing market rate.
4.That the First Party has assured the Second Party that the property in question is free from all kinds of encumbrances, such as prior sale, gift, will, lien, litigation, lease, loan, surety, security, acquisition, etc.
5.That the total cost of construction of all five floors of the above-said property shall be borne by the Second Party, and upon execution of this Agreement, the Second Party shall become the full, complete, absolute and sole owner of the complete portion of the first floor, together with one-fourth portion in the stilt area as marked in the drawing attached herewith, as delineated on a mutually agreed basis and as indicated on the map enclosed.
6.That the transaction shall be subject to all governing laws, rules, regulations, policies, guidelines, terms and conditions of the lease, including the newly introduced provisions of the Delhi Apartment Ownership Act, as well as any changes in statutory provisions, rules, regulations, guidelines and policies, as applicable from time to time. The Second Party shall be entitled and free to have the aforesaid complete portion of the first floor, together with one-fourth portion in the stilt area as marked in the drawing attached herewith, registered or mutated in his/their own name(s) or in the name of any nominee.
7.That the First Party shall not have the right to abandon this Agreement or the construction of the floors, to keep the work incomplete, or to hamper the completion of all the floors in a manner causing inconvenience and financial loss to the Second Party. The First Party agrees to keep the Second Party harmless from any demand of electricity and water charges or any other dues, demands or disputes for the period prior to the handing over of possession of the said property for construction as per the date mentioned hereinabove. The Second Party shall be liable to pay all charges towards consumption of electricity and water during the course of construction, and the First Party shall not be held accountable for the same.
8.That the First Party hereby irrevocably constitutes the Second Party as General Attorney in respect of the complete portion of the entire building, for submitting applications to the various authorities for all necessary exemptions, permissions, approvals, sanctions and allotment of building materials, etc., as required for the development, construction and completion of the said floors; and for the said purpose, the First Party has agreed to execute and/or register an Irrevocable General Power of Attorney in favour of the Second Party or his nominee, for all purposes whatsoever, for the duration of, and until the full implementation of, this Agreement, in all respects, including submission of specifications, plans and documents, etc., to the various authorities, and all exemptions, permissions, approvals, sanctions and allotments of building materials, etc., required for the development, construction and completion of the said floors. The Irrevocable General Power of Attorney shall also include the power to transfer or convey the Second Party's rights, title and interest in the said complete portion of the first floor, together with one-fourth portion in the stilt area as marked in the drawing attached herewith, after completion of the building, in favour of any person.
9.That the First Party shall execute a comprehensive General Power of Attorney and a Special Power of Attorney for the construction of the building of all the floors, duly authenticated both by a Notary and before the Sub-Registrar, for various purposes including transfer. In addition, the documents, as per the draft mutually agreed between the parties and as listed below, shall also be executed by the First Party.
(a)Receipt for money taken by the Second Party from the First Party.
(b)Special Power of Attorney for various matters, for representing before the public body/lessor, authenticated by a Notary.
(c)A Will bequeathing absolutely and forever the right, title and interest in the complete portion of the first floor, together with one-fourth portion in the stilt area, at Property address, as marked in the drawing attached herewith, to be executed before the Sub-Registrar.
(d)An Agreement to Sell in respect of the complete portion of the first floor, together with one-fourth portion in the stilt area, as marked in the drawing attached herewith.
(e)Handing over of physical possession.
(f)Licence to construct the said building structure.
10.That the First Party shall retain the exclusive rights, title and interest in respect of the entire property, except the complete portion of the first floor, together with one-fourth portion in the stilt area, as marked in the drawing attached herewith, which alone shall belong to the Second Party.
11.That the second party shall provide five (5) separate electricity and water meter(s)/connections for each floor of the ground floor, and five (5) separate overhead water storage tank(s) for each floor on the roof/terrace of the building, together with one common submersible pump for underground water for all the floors. In case separate meters are not possible for any reason, the parties shall maintain a mutually acceptable system of meter sharing for all expenses on these accounts. Both parties shall be responsible for making prompt and full payment of their respective shares, in order to protect the property from any attachment, auction, sale, etc., by any Government Department.
12.That the staircase and other common areas shall be common for both parties. However, for security purposes, both parties may fix doors in the staircase/common areas, provided that the same are fitted with Godrej locks and a duplicate key thereof is provided to the other party.
13.That the first party shall construct a separate underground tank under the driveway area, which shall be available for the exclusive use of the second party. The ownership of the tank shall, however, remain with the first party.
14.That the first party has furnished an indemnity that the aforesaid family members have no right in the first floor and one-fourth share in the stilt area, and as such they cannot raise any objection whatsoever with regard to this Agreement. The first party hereby agrees and assures that he has not entered into any such agreement or transaction with anyone else till date in respect of the first floor and one-fourth area of the stilt, and shall not do so in the future either.
15.That the second party shall have the right to enter into any agreement to sell/bayana agreement with any party/intending purchaser in respect of the complete first floor with one-fourth area of the stilt falling to his allocation on the basis of this collaboration agreement, and to receive the earnest money therefrom, and the first party shall have no objection to the same.
16.That the entire building shall be used merely for residential purposes, and no illegal or impermissible user shall be carried out by either party so as to avoid the possibility of the DDA exercising pre-emptive rights of entry, etc. It is further clarified that in case any damages, penalties, compounding charges, etc., are levied by the DDA/MCD for the user by either party, then that party shall be exclusively responsible for making payment of the same. The first party shall not revoke or cancel this agreement under any circumstances whatsoever.
17.That subject to the other provisions of this agreement, all the professional costs and expenses involved in obtaining the requisite permissions, sanctions of building plans, etc., from the Delhi Municipal Committee and/or other authorities shall be borne and paid by the first party. All the expenses, including miscellaneous expenses, to be incurred at the stage of Form ‘C’ and ‘D’ and the completion certificate shall be shared equally between both parties.
18.That if there be any claim, demand, litigation and/or court’s decree of any nature whatsoever against either party, then it is a condition of this agreement that the work of development and/or completion under this agreement shall not, at any time, whether during construction or after completion or on handing over possession to the respective parties, be stopped, prevented, obstructed or delayed in any manner whatsoever. Any claims, demands, litigation and/or court’s decrees shall only be met and satisfied out of the share of the concerned party in the built areas belonging to them under this agreement, or the proceeds thereof, and any such claim, outstanding demand, litigation and/or court’s decree from any authority and/or court shall not, in any way, affect or be realised from the share of the other party.
19.Both parties shall carry out their construction only and entirely in accordance with the sanctioned plan read with all other applicable laws, rules and regulations. As the parties understand at present, the permissible FAR is Permissible FAR. It is agreed that this FAR, or whatever may be the permissible FAR, shall be divided in the ratio of FAR ratio for ground floor (GF), FAR ratio for first floor (FF) and FAR ratio for second floor (SF). The parties understand that at present Permissible covered area for first floor (sq. ft.) sq. ft. is the permissible covered area for the first floor for the second party to construct. In case compounding/penalty is imposed on the property as a whole, then the total thereof shall also be divided in the ratio of 80:20; the first party shall bear 80% and the second party shall bear 20% of the penalty. The second party shall construct, at the maximum, only that much which the first party constructs above the garage on the first floor. Both parties may make 3-feet balconies at their own respective expenses and responsibility. Neither party shall obstruct the open spaces, shafts, etc., beyond the existing lines.
20.Switches and electrical controls shall be situated on the respective floors only. Pumps for the entire floor shall be under the main staircase or at any other place on the ground floor which the first party may close or change in its absolute discretion.
21.That the second party shall be responsible for the quality of the entire construction; provided that if there is any wear and tear due to any special user by the first party, the first party shall be liable to carry out repairs to that extent. Both parties shall neither do, nor cause to be done, anything which may visit the other with penalty, inconvenience or any other adverse consequences, and both parties shall keep their respective portions in good and proper condition and shall not do or omit to do anything which may endanger or adversely affect any portion of the said premises.
22.That both parties shall have full right of access to the underground or overhead tank, pump houses, electricity or water conduits, pillars, walls, etc., as may be required for cleaning or repairs or for any other requirements of an emergency nature.
23.That either party desiring to transfer its property and/or the benefits of this agreement to any other person, whether wholly or in part, shall clearly stipulate in the transaction of transfer that the terms and conditions of this agreement shall also form part of that agreement. Similarly, if either party lets out any part or the whole of the premises on lease/licence, the terms and conditions of this agreement shall be made part of that document, and a copy thereof shall be supplied to the other party for ensuring that this compliance has been made.
24.That any disputes arising at any time whatsoever, whether in relation to or in connection with this agreement, or any other matter whatsoever relating to the ownership, use or enjoyment of the said premises, shall be decided by an arbitrator mutually acceptable to both parties.
25.The parties have agreed that this memorandum of agreement is the basic document governing the relations and transactions between the parties. However, in the event of any dispute or difference of, conflict with, or contradiction between any of those documents (or terms thereof) and the present memorandum (or terms hereof), the present memorandum shall have overriding effect and shall operate to determine the real transaction and the real agreement between the parties.
IN WITNESS WHEREOF THE PARTIES HERETO HAVE SIGNED THIS DEED ON THE DAY, MONTH AND YEAR FIRST MENTIONED ABOVE, IN THE PRESENCE OF THE FOLLOWING WITNESSES:
FIRST PARTY
First party's signature
SECOND PARTY
Second party's signature
WITNESSES
1.
2.