Many time there is a need for developing land or develop any property. Like develop a land make plotting on it, Develop land and construction on it, or destruct the old building and construct the new one at that time there is a need for a development agreement. If there is a situation like one person have land but does not have knowledge of construction and one person have a knowledge of construction but does not have land, in that case, this two-person come together and make an alliance to build the construction on the land which is available with landlord, In this situation development agreement comes in picture.
1. It must to register the development agreement according to law and pay the stamp duty on it.
2. include the Complete property/land description.
3. Mention the terms and condition in a very simple and understandable format. And also mention the deadlines in terms of date to complete the construction.
4. Also mention the clause if any party does not follow the terms and condition of the agreement then what is provision Example: to appoint arbitrator, goes to the court etc.
5. about to take permissions from the local self-governing body, construction etc. Who is going to take Expense of it.
6. take two witnesses.
7. what is the consideration of the said agreement or share of the final construction how it is going to distribute among the landowner and developer.
A Real Estate Development Agreement is an agreement between Land Owner and a construction company, Builder to develop the land for the residential or commercial purpose. Once the owner approves and sign the plan and register it into the sub-registrar then Developer may execute the project for development.
Advantages of the Development Agreement.
1. The initial investment of land is not required for the developer.
2. Stamp duty also avoided shortly.
3. Fast process of property development, responsibility toward Approval and construction only.
4. A secured loan can be obtained by a lands development agreement.
5. investor and landlord both are in benefits with the association of money and land.