The Land Owner Builder Agreement is a crucial document in Indian real estate development that facilitates collaboration between property owners and developers. It is typically used when a landowner wishes to develop their property but lacks the expertise or resources to do so independently, thus partnering with a professional developer. The agreement, governed by Indian law including RERA 2016, must comply with state-specific regulations and local building codes. It outlines the division of developed property or revenue sharing, construction specifications, timelines, and quality standards. This document is essential for protecting both parties' interests and ensuring clear understanding of roles, responsibilities, and benefits in the development project. It forms the foundation for obtaining necessary permits, securing financing, and initiating construction activities.
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1. Parties: Details of the land owner and the builder/developer, including registration details and addresses
2. Background: Context of the agreement, including property ownership details and development intention
3. Definitions: Key terms used throughout the agreement including Project, Property, Development Rights, Built-up Area, etc.
4. Property Details: Comprehensive description of the land, including measurements, boundaries, and title details
5. Development Rights and Obligations: Scope of development rights granted to builder and respective obligations of both parties
6. Project Specifications: Details of the proposed development including building plans, specifications, and amenities
7. Consideration and Revenue Sharing: Financial terms including sharing ratio of developed property or revenue between parties
8. Construction Timeline: Project completion milestones, schedules, and consequences of delay
9. Approvals and Permissions: Responsibility for obtaining necessary permits and clearances
10. Quality and Specifications: Construction standards, materials quality, and inspection rights
11. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity and property
12. Indemnification: Mutual indemnification clauses for breach of obligations or representations
13. Term and Termination: Duration of agreement and circumstances for termination
14. Dispute Resolution: Process for resolving disputes including arbitration provisions
15. Governing Law: Applicable laws and jurisdiction
1. Force Majeure: Provisions for unforeseen circumstances preventing performance, optional but recommended
2. Assignment: Rights and restrictions regarding transfer of rights to third parties
3. Marketing Rights: Terms for project marketing and sales activities if applicable
4. Maintenance Provisions: Post-completion maintenance responsibilities if relevant
5. Environmental Compliance: Specific environmental obligations if property is in sensitive zone
6. Intellectual Property: Rights over project designs and marketing materials if significant
7. Insurance: Specific insurance requirements beyond statutory obligations
1. Schedule A - Property Description: Detailed property documents including survey numbers, boundaries, and maps
2. Schedule B - Development Specifications: Architectural plans, layouts, and detailed construction specifications
3. Schedule C - Permissions and Approvals: List of required approvals and current status
4. Schedule D - Payment Schedule: Detailed financial terms and payment milestones
5. Schedule E - Construction Timeline: Detailed project timeline with milestones
6. Schedule F - Area Sharing Details: Specific division of built-up area or revenue sharing calculations
7. Schedule G - Title Documents: Copies of land ownership and title clearance documents
8. Appendix 1 - Power of Attorney: If applicable, power of attorney for development rights
9. Appendix 2 - Existing Encumbrances: Details of any existing liens or encumbrances on the property
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