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HomeConveyancingMEMORANDUM OF AGREEMENT

MEMORANDUM OF AGREEMENT

Admin July 21, 2021
Construction Agreement

MEMORANDUM OF AGREEMENT[CD1] 

MEMORANDUM OF AGREEMENT


 

 

 THIS AGREEMENT MADE AT NEW DELHI on this. of.. ....................BETWEEN..... of ....................... (hereinafter referred to as the first Shri................. resident of ......................... (hereinafter referred to as the second party).

The expression "First” and Second” party shall include their successors, legal heirs, nominees, beneficiaries, representatives and assignees.

 The First party is the absolute and sole owner of the property situate at   The said property is a single story building constructed on a 320 sq. yards plot, and is registered in the name of the first pa vide lease Deed registered at Serial No: .................. Book No.. Volume No. ........................ on pages..........

............... to .................. Dt. ............. The said property is the 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 first floor construction of the said property at...................., so that the same may be used or let out or sold or transferred or 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. However, the First party is short of liquid cash for the said purpose.

AND WHEREAS the First Party has come into 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 first floor of condition that the ownership right of the second floor space flat, and 50% bom portion of the complete open terrace area above the second floor is given to the sea party, who will construct the second floor with his own funds and use the sam purely residential purpose as mentioned in this agreement. The said offer is a by the First Party. Hence this agreement.

 

NOW THIS AGREEMENT WITNESSES AS UNDER

 

:1. That the Second Party will pay a sum of Rs...... only) to the First Party by cheque or Bank Drai consideration of the rights given to the Second Party under this agro schedule of payment has been agreed by both the parties mutually executed from time to time will automatically become part of this

2. Upon payment of the abovesaid amount of Rs. ................ (Rs............ (Rupees

in its entirety, the Second Party will become the full,complete,absolute and sole owner of the said Second Floor, including open spaces of the said a and also of 50% of the front portion of the terrace above the second floor on mutually agreed basis and indicated on the map enclosed. This to all time remain as a totally open terrace area.

3. That the above amount Rs........................ (Rupees only) will be utilized to finance the completion of the construction of the by the First Party, who will spend either all, or most, of this amount toc said construction with utmost expediency, so as to complete the construct structurally adequate first floor roof within minimum six months from the  fresh sanction revival of building plan. Similarly, the Second Party will also out and complete his construction with utmost expediency.

4. 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 all changes in statutory provisions, rules, regulations, guidelines, policies etc., as applicable from time to time. The Second Party will be entitled and free to get the aforesaid second floor registered/mutated in his/their own name, as and when permissible, provided that the entire cost and expenses thereof towards the second floor and above only, will be incurred by the second party.

5. From the date of the possession letter, the possession of the roof of the ground floor shall stand handed over by the First Party to the Second Party for the purpose of this agreement, and shall be deemed to remain with the second party till the commencement of construction of second floor. Thereafter the possession of second floor and 50% of the front portion of the terrace above the second floor shall remain with the second party as full owners, and the first floor possession will automatically revert back to the first party.

6. The First Party shall not have the right to abandon the construction the first floor or to keep the work for first floor incomplete so as to hamper completion of second floor leading to inconvenience and financial losses second party

7. That the First Party hereby irrevocably constitutes. Second General Attorney in respect of second floor only, for submitting applicant various authorities for all necessary exemptions, permissions, approve and allotment of building materials etc., as required for the development, cons and completions of the said second floor, and for the said purpose, ! executed and/or register an Irrevocable General Power of Attorney in favor of second  Party or his nominee for all purposes whatsoever till the u implementation of this agreement, in all respects including submission plans documents etc., to various authorities, all exemptions, pern sanctions, allotment of building materials etc., required for development.

construction and completion of the said second floor. The Irrevocable of Attorney shall also include power to transfer or convey the secon title and interest in the said second floor after completion of the build of any one, but only after prior intimation in writing to the first party to clause 26 hereof and only after making the present terms to be precedent to the said transfer.

8. That the First Party will execute comprehensive General Por Attorney and special power of Attorney for construction of second flo authenticated both by a notary and before the sub-Registrar for purpose including transfer. In addition, the documents as per the draft mi agreed between the parties and as listed below should also be executed by the First Party.

(a) Receipt for consideration money,........

(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 second floor and 50% terrace thereof.

(d) An agreement to sell the second floor and 50% of the terrace.

(e) Handing over of the physical possession.

(f) Licence of to construct the second floor structure and

(g) Monthly lease agreement for second floor and 50% terrace.

9. That the second party and any of its assignees, transferees, etc., will remain bound to furnish all declarations, clarifications and documents as may be required by the first party for the purpose of confirming or establishing its exclusive rights, title and interest in respect of the entire property, except the second floor 50% of the open terrace above the said second floor, which only will belong to second party.

10. That the parties will obtain the separate electric watermeter etc., obtain mutation of their respective portions for property tax purposes. In meters are not possible for any reason, the parties will maintain a mutually system of metersharing of all expenses on these accounts. E responsible for making prompt and full payment of their respective s to protect the property from any attachment, auction, sale etc., by any Government Department.

11. That the Stair-case and other common areas will be commo parties. However, for security purposes both the parties can fix doo common areas provided that the same will be fitted with Godrej lo key thereof will be provided to the other party.

 

12. The First Party shall construct a separate underground tnkum way area which will be available for exclusive use by the second na of the tank will, however, remain with the first party.

13. That the First Party has……………………………........ The First Party has furnished

an indemnity that aforesaid family members have no right in the second as such they can't raise any objection whatsoever, with regard to this A. First Party hereby agrees and assures that he has not entered into any such or transaction with anyone else till date in respect of second floor, and will so in future also.

14. That the Second Party shall use the premises only for residential purposes and in such as a manner that there is no disturbance or obstruction to the First Party's or anyone else use of the rest of the property..

15. 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 excercising premptive/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.

16. That neither the First Party nor the second party shall revoke or cancel this agreement in or under any circumstances whatsoever.

17. That subject to the other provisions of this agreement, all the professional costs and expenses involved in the obtaining of the requisite permissions, sanctions of building plants etc., from the Delhi Municipal Committee and/or other autho shall be borne and paid by the first party. All the expenses including miscellance expenses to be incurred at the stage of Form 'C' & 'D' and completion cenu shall be shared equally between both parties.

18. That if there be any claim demand/litigation/and/or any court's any nature whatsoever against either party, then it is a condition of this as that the work of development and/or completion of this agreement and/or completion of this agreement shall not, any time or during construction or after the completion or on handing over to the respective parties be stopped, prevented, obstructed or delayed whatsoever. That any claims, demands, litigation and/or court's dec be met and satisfied out of share of the concerned party. In the built to them under this agreement or the proceeds thereof and that outstanding demands, litigation and/or court's decree from any author 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 annt: regulations. As the parties understand at present the permissible agreed that this FAR area, or whatever may be permissible FAP the ratio of 60(GF), 60(FF) and 40 (SF). The parties understa 1175.00 sq.ft. is the permissible covered area for the second floor fo to construct, subject to the further agreement that in case any com is available floor wise then second party may avail of the same with affecting the rights of the first party in relation to the ground floor and (including the first party's right to avail similar compounding/penalty one also). In case compounding/penalty is for the property as a whole, the thereof shall also be divided in the ratio of 60:60:40. The second party will at the maximum, only that much which the first party will construct, above the on the first. Both parties can make 3 feet balconies, at their own respective e and responsibility. Neither party is to obstruct the open spaces, shaft etc., bevond the existing lines.

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

21. It is agreed that 50% rear portion of the terrace of the second floor will vest in the first party, while 50% of the front portion of the said terrace will be with the second party. However, the second party will be responsible for the quality of entire terrace 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 repairs to that extent. In all other eventualities the second party will reimburse the maintenance, since this rear portion will be the roof, above the second party's second floor portion

22. The stair hall and a common staircase from the second floor to the ter of the second floor, will be constructed after the completion of the second 110 thereof being bome equally by both the parties. The cost of the staircase and from first floor to the second floor will be borne by the second party.

23. Both the parties shall neither do not cause to be done anything visit the other with penalty, inconvenience or any other adverse consequenes.

24. That both the parties will keep their respective portions in good and proper condition and shall not do or omit to be done anything which may endanger or adversely affect any portion of the said premise.

25. That both parties will have full right of access to overhead tank, pump houses, electricity or water conduiters, the p may be required for cleaning or repairs or for any other require nature.

26. That either party desiring to transfer their properties and/or the benefits.

of this agreement upon any other person, whether wholely or in pa stipulate in the transaction of transfer, that the terms and conditions of shall also part of that agreement. Similarly, if either party lets out an of the premises on lease/licence, the terms and conditions of this ag, made a part of that document, and a copy thereof shall be supplied to for ensuring that this compliance has been made. Provided that secon not be entitled to transfer, sell, mortgage or alienate the second floor under this agreement, for a period of 10 years from the date hereof save for following contingencies :

PROVIDED further that in exceptional circumstances, the second parte be entitled to sell the second floor second party even before the expiry of 10 with the consent of first party, which consent first party shall not unreasonably refuse

27. 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.

28. Parties have agreed that this memorandum of Agreement is the basic document governing the relations and transaction between the parties. The documents referred to in para 8, will be drawn up by the second party in the form and manner most convenient and best suited to the second party for obtaining a marketable title. However, in the event of any dispute or difference of conflict or contradiction between any of those documents (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 THE DEED ON THE DAY, AND YEAR FIRST MENTIONED IN THE PRESENCE THE FOLLOWING WITNESSES.:

                                                                                                         …………………

FIRST PARTY

WITNESSESS

     1……………………                                                                                  ………………

     2………………..                                                                              SECOND PARTY

 

 

 

 


 [CD1]MEMORANDUM OF AGREEMENT

 

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