MEMORANDUM OF AGREEMENT

This Agreement made at XXXX on this XXXX Between XXXXX & XXXXX BOTH SONS OF LATE XXXXX R/O XXXXX. (Herein referred to as the first party ) XXXXX BEARING ADDRESS XXXXX (Here referred to as the second party).

The expression “First Party” and “Second party” shall include their respective successors, legal heirs, nominees, beneficiary, representatives and assignees.

The First party is the absolute and sole owner of the property situated at E-2, Shivaji Road, Near Shiv Mandir, Adarsh Nagar Extension, New Delhi.

The said property is a single-story building constructed on a 150 sq. yards plot, and is registered in the name of the first party vide lease deed registered documents serial no. …………….. Book no. ……………… Volume no…………. on pages no…………..to …..dated …….. The said property is a self-acquired property purchase and constructed out of the own funds of the first party.

And whereas now the First party wants to complete the five floors construction of the said property including stilt parking without lift at XXXX, so that the same may be used or let out or sold or transferred apportioned between the natural heirs, or in any other way assigned or so leased out as desired by the first party in its exclusive discretion and/or in the interests of the first party or his heirs to secure better and comfortable living in future.

And whereas the First Party has come into the contact with the second party who is ready to help in accomplishing the said desire of the First Party. The second Party has offered to finance the construction of the complete 5 floors with stilt on the condition that the ownership right of the complete portion of first floor, with One fourth portion in Stilt area as marked in drawing attached herewith, is given to the second party, who will construct the entire 5 floors with his own funds. The said offer is accepted by the first party, hence this agreement.

NOW THIS AGREEMENT WITNESSES AS UNDER:

1. That the second party will construct the entire 5 floors of the said property and pay a sum of Rs. XXXX to the first party by cheque bank draft, as full consideration of rights given to second party under this agreement for complete portion of first floor, with One-fourth portion in the Stilt area as marked in drawing attached. The schedule of payment has been agreed by both the parties mutually. All receipts executed from time to time will automatically become the part of this agreement.

2. That the subject matter of this collaboration agreement between both the parties is to construct the property no. E-2, Shivaji Road, Near Shiv Mandir, Adarsh Nagar Extension, New Delhi, which is owned and possessed by the part of first party.

3. That it has been mutually agreed upon between both the parties that second party will construct the Entire above-mentioned property out of their own funds, costs and expenses, etc. within 15 months from the date of handing over the actual vacant peaceful physical possession of the said property by the First party, which is on or before XXXX, along with Rs. XXXX will be giving to the first party and the monthly rent for two rooms set for the residence purpose for the period of 15 months is given by second party to the first party as per the market rate.

4. That the first party have assured the second party that the property in question is free from all kind of encumbrances, such as prior sale, gift, will lien, litigations, lease, loan surety, security, acquisition etc.

5. That the total cost of construction including all the five floors for the above said property is bear by the second party, and after the agreement the Second Party will become the full, complete, absolute and sole owner of the said the complete portion of first floor, with One fourth portion in Stilt area as marked in drawing attached herewith as delineated on mutually agreed basis and indicated on the map enclosed.  

6.   That the transaction shall be subject to all the Governing, Laws, rules, regulations, policies, guidelines, terms and conditions of lease including the newly introduced provisions of the Delhi Apartment Ownership Act, as well as changes in statutory provisions, rules, regulation, guidelines, policies etc, as applicable from time to time. The Second Party will be entitled and free to get the aforesaid complete portion of first floor, with One fourth portions in Stilt area as marked in drawing attached herewith registered/mutated in his/their own name or in the name of any other nominee.

7.   The First Party shall not have the right to abandon the agreement or construction of the all the floors or to keep the work incomplete or to hamper the completion of all the floors leading to inconvenience and financial losses to the second party, the first party agrees to keep the second party harmless from any demand of electric and water charges or any other dues and demands/dispute for the period before the handing over possession of the said property for construction as per date mentioned herein above, second party shall be liable to pay for all the charges against the consumption of the 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 irrevocable constitutes Second Party as General Attorney in respect of the complete portion of all the building for submitting application to the various authorities for all necessary exemptions, permissions, approvals, sanctions and allotment of building materials etc., as required for the development, construction and completions of the said floors, and for the said purpose, have agreed to execute and/or register an Irrevocable General Power of Attorney in favour of Second Party of his nominee for all purposes whatsoever till the duration, and full implementation of this agreement, in all respected including submission of specifications, plans documents etc, to various authorities, all exemptions, permissions, approvals, sanctions, allotment of building materials etc, required for the development, construction and completion of the said floors. The Irrevocable General Power of Attorney shall also include power to transfer or convey the second party’s rights, title and interest in the said complete portion of first floor, with One fiveth portion in Stilt area as marked in drawing attached herewith after completion of the building, in favour of any one.

9.     That the First Party will execute comprehensive General Power of Attorney and special power of Attorney for construction of the building for all the floors, duly authenticated both by a notary and before the sub-Registrar for various purpose including transfer. In addition, the documents as per the draft mutually agreed between the parties and as listed below should also be executed by the First Party.

(a) Receipt for money taking 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)  Will bequeathing absolute and forever the right, title and interest in the complete portion of first floor, with One fourth portion in Stilt area at E-2, Shivaji Road, Near Shiv Mandir, Adarsh Nagar Extension, New Delhi as marked in drawing attached herewith in front of the Sub Registrar.                  

(d) An agreement to sell complete portion of first floor, with One fourth portion  in Stilt area as marked in drawing attached herewith.

(e) Handing over of the physical possession.

(f) Licence of to construct the said building structure,      

10.    That the first party has its exclusive rights, title and interest in respect of entire property, except complete portion of first floor, with one fourth portion in Stilt area as marked in drawing attached herewith above the said property, which only will belong to the second party.

11.  That the second party shall provide 05 (five) separate electric and water meter(s)/connections for the each floor on ground floor and 5(five) separate overhead water storage tank/s for each floor on the roof/terrace of the building and one common submersible for the underground water for all the floors and in case separate meters are not possible for any reason, the parties will maintain a mutually acceptable system of meter sharing of all expenses on these accounts. Both the parties will be responsible for making prompt and full payment of their respective shares, in order to protect the property form any attachment, auction, sale etc., by any Government Department.  

12.  That the Stair-case and other common areas will be common for both the parties. However, for security purposes both the parties can fix doors in the staircase/common areas provided that the same will be fitted with Godrej locks and duplicate key thereof will be provided to the other party.

13.  That the First Party shall construct a separate underground tank under the drive way area which will be available for exclusive use by the second party. Ownership of the tank will, however, remain with the first party.

14. That The First Party has furnished an indemnity that aforesaid family members have no right in the first floor and one fourth share in stilt area and as such they can’t raise any objection whatsoever, with regards to this Agreement, First Party hereby agrees and assures that he has not entered into any such agreement or transaction with anyone else till date respect of first floor and one fourth area of stilt, and will not do so in future also.

15.  That the Second Party shall have right to enter into any agreement to sell/banana agreement, with any party/intending purchaser, in respect of portion complete first floor with one fourth area of stilt falling into his allocation on the basis of this collaboration agreement and to receive the earnest money there from and the first party shall have no objection to the same.

16.  That The entire building will be used merely for residential purposes and no illegal or impermissible user will be carried out by either party so as to avoid the possibility of DDA exercising preemptive/rights of entry etc. It is hereby clarified further more that in case any damages, penalties, compounding charges etc., are levied by the DDA/MCA 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 in or under any circumstances whatever.

17. That subject to the other provisions of this agreement, all the professional costs and expenses involved in obtaining of the requisite permissions, sanctions of building plants 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’ & ‘D’ and completion certificate shall be shared equally between both parties.

18. That if there be any claim demand/litigation/and/or any 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 of this agreement shall not, any at time or during construction or after the completion or on handling over possession to the respective parties be stopped, prevented, obstructed or delayed in any manner whatsoever. That any claims, demands, litigation and/or court’s decrees shall only be met and satisfied out of share of the concerned party. In the built areas belonging to them under this agreement or the proceeds thereof and that any such claim outstanding demands, litigation and/or court’s decree form any authority and/or court shall not, in any way, affect or be realized from the share of the other party.

19. Both parties will 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 ……. It is agreed that this FAR are, or whatever may be permissible FAR, will be divided in the ratio of …….(GF), ……(FF) and ……(SF). The parties understand that at present ………….sq.ft. is the permissible covered area for the first floor for the second party to construct. In case compounding/penalty is for the property as a whole, then the total thereof shall also be divided in ratio of 80:20. First party will bear 80% and the second party will bear 20% penalty. The second party will construct at the maximum, only that much which the first party will construct, above the garage on the first. Both parties can make 3 feet balconies, at their own respective expenses and responsibility. Neither party is to obstruct the open spaces, shaft etc., beyond the existing lines.

20.  Switches and electrical controls will be situated in respective floors only. Pumps of the entire floor, will be under the main staircase or any other place on the ground floor which the first party may close or change in its absolute discretion.

21. That the second party will be responsible for the quality of entire  construction, provided that if there is any wear and tear due to any special user by the first party, then first party will be liable to carry out repair to that extent, Both the parties shall neither do not cause to be done anything which may visit the other with penalty, inconvenience or any other adverse consequences and both the parties will keep their respective portions in good and proper conditions and shall not do or omit to be done anything which may endanger or adversely affect any portion of the said premise.

22.     That both parties will have full right of access to the under- ground or overhead tank, pump houses, electricity or water conduits, the pillars, wall etc., as may be required for cleaning or repairs or for any other requirements of emergency nature.

23.  That either party desiring to transfer their properties and/or the benefits of this agreement upon any other person, whether wholly or in part, shall clearly stipulate in the transaction of transfer, that the terms and condition of this agreement, shall also part of that agreement. Similarly, if either party lets out any part of whole of the premises on lease/license, the terms and conditions of this agreement will be made a 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, relation to the ownership, use or enjoyment of the said premises, shall be decided by an arbitrator mutually acceptable to both parties.

25. Parties have agreed that this memorandum of Agreement is the basic document governing the relations and transaction between the parties. However, in the event of any dispute or difference of conflict or contradiction between any of those document (or terms thereof), and the present memorandum (or terms hereof), then the present memorandum will have over-riding effect, and will 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, AND YEAR FIRST MENTIONED IN THE PRESENCE OF THE FOLLOWING WITHESSES.:-

                                                                                       FIRST PARTY

                                                                                              ……………………………

                                                                                     SECOND PARTY     

                                                                                                                                                                                                                                                                                                                                                                                   ……………………….                                                                                                                                                                                                             

WITNESSESS   

1.

2.