Importance of Sale Deed in Collaboration Agreement
Hey guys,
My uncle has the following query.It will be great if you could help him or maybe give a lawyers reference.
“Sir/madame
I have a property with construction of Ground Floor and First Floor. Now I want to enter into a collaboration agreement with a builder. As per present scenario, a stilt parking, Ground Floor, First Floor, Second Floor and Third Floor with terrace can be built. I will keep the ground floor and the rest of the portion will be given to the builder. I understand that for entering into an agreement with the builder, a collaboration agreement and a sale deed are required to be executed. I have the following queries :
1. Who will keep the original collaboration agreement, the owner of property or the
builder?
2. I want to know when the Sale Deed is required to be registered i.e. after new
structure built by the builder or is it possible to get the sale deed registered
with old construction as builder says he will get registry with terrace above
second floor with sky high. Who will keep original sale deed, the owner of
property or builder?
3. what is the purpose of agreement to sale as builder has also prepared a draft
copy of this agreement. Again, if this document is required, who will keep the
original, the owner of property or the builder.? ”
Thanks Guys .
2 Replies
Collabration Agreement is required and is to be signed to detail the rights and duties of each party to the agreement. The same should be the first Primary Document which needs to be executed by your uncle.
2. Sale deed need not be executed at this point of time.
3. Agreement to Sell should not be independent of the collabration Agreement. The recitals should be very clear with this respect and it should have clauses relating to assignment of the right of Developer in such ATS since the developer would or might be more intrested in selling the property to a third person.
4. Execute Sale deed only after you get possession of your portion in collabration to the complete satisfaction. Entire process of construction might take 18 months and if improperly constructed in violation of sanction plan you may not have any right left to enforce against the Developer.
5. Do insist upon getting completion Certificate of Property if constructing as per the Sanction Plan.
6. Originals please keep with your self give a photocopy of entire documents to developer which is countersigned by your uncle. Originals even as per market norms is to be given to the owner of the last flat i.e. in case you wish to sell the property to the buyer who buys your portion of the property or as per your understanding with the Developer.
Hope this would resolve your issues.
Thank you very much ! :D