Development (collaboration) agreement: landowner and builder
A landowner gives land to a builder to develop, for a share of the flats or of the sale money: approvals, RERA, timeline, costs, the power of attorney, defaults and arbitration.
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Not yet reviewed by a lawyer. Check every line before it is signed.
How the paper begins
With Dastavo's sample details; the people and places are fictional. The words in blue are the ones you fill in.
DEVELOPMENT (COLLABORATION) AGREEMENT
This Development (Collaboration) Agreement is made at Amarnagar on 12 October 2026 between Gurdev Singh son of Shri Karnail Singh, aged about 48 years, resident of House No. 88, Model Town, Amarnagar, Tehsil and District Amarnagar, Punjab (the "Owner"), and Verma Buildtech LLP (LLPIN AAA-0000, registered office at SCO 21, Sector 9, Shantipur), acting through its authorised signatory Anil Verma son of Shri Ramesh Verma, aged about 31 years, resident of House No. 204, Sector 9, Shantipur, District Shantipur, Haryana (the "Developer"). Each party includes its heirs, legal representatives, successors and assigns.
WHEREAS the Owner is the absolute owner in possession of the land described in the schedule below (the "Land"), having acquired it by inheritance from his father Karnail Singh, mutation No. 3321;
WHEREAS the Developer builds and sells real estate, and has offered to develop the Land at its own cost by constructing on it a residential building of stilt parking and five floors, with ten flats (the "Project");
WHEREAS the Owner has accepted the offer in return for the share stated below, on the terms that follow;
The rest of the paper is in Dastavo.
What to bring
Papers to bring
- Proof of ownership: the sale, gift or other deed, with the latest jamabandi (fard) and mutation, or the municipal or authority record for an urban plot
- The site plan or aks shajra of the land, and a demarcation report if the boundaries are in doubt
- A search report on the title (usually got by the developer's advocate), and the bank's no-objection certificate if the land is mortgaged
- The landowner's identity proof, PAN card and photographs; if the land is jointly owned, every co-owner must join and sign
- For the developer: the certificate of incorporation or the partnership deed, PAN, GST registration, and the board resolution or authority letter for the person signing
- Any approval already obtained (change of land use, licence, sanctioned plan), and the list or drawing of the landowner's units if they are fixed
- Two witnesses, each with an identity proof
Where to go
Signed by both before two witnesses and usually registered at the office of the Sub-Registrar where the land lies; the landowner and the developer (or its authorised signatory) appear in person with identity proof. The power of attorney to the developer is a separate deed, usually registered the same day.
Fee
Stamp duty differs by state: some charge a development agreement as an agreement, others like a sale on the value of the land or of the share given. The registration fee is extra. Ask the Sub-Registrar before buying the e-Stamp.
Good to know
- Have the title checked by an advocate before signing, and keep a copy of every approval in the landowner's own file.
- Where the real estate law (RERA) applies, no flat or plot may be advertised or booked before the project is registered with the Real Estate Regulatory Authority.
- The landowner's share and the deposit can have income-tax and GST effects; ask a chartered accountant before signing.
Papers and fees can change. Check with the office before you go. Guidance only, not yet reviewed by a lawyer.
Stamp paper
Stamp duty on a development agreement differs by state: some charge it as an agreement, others as a conveyance on the value of the land or of the share given, especially when possession or a power of attorney to sell goes with it. It is usually registered, and must be when it gives possession in part performance (Registration Act 1908, s.17(1A)). Check with the Sub-Registrar before buying the e-stamp.