TOP 10 REAL ESTATE AGREEMENTS
There are several types of agreements used in the real estate industry. Top 10 amongst the same are as under:
1. Works Contract Agreement:
• The binding contract between the developer and the contractor for undertaking specific works to be carried out for the developer.
• It defines the scope of work, payment terms, timelines, and other key details between the developer and the contractor.
2. Joint Venture Agreements:
• A Joint Venture Agreement (JVA) in real estate is a collaborative arrangement where two or more parties pool resources, skills, and expertise to develop, manage, or invest in a real estate project.
• JVA outlines the terms of the partnership, including the roles and responsibilities of each party, profit sharing, and how the venture will be terminated.
3. Purchase Agreements:
• Legally binding contract between the developer and the supplier to ensure the purchase of building materials for real estate projects outlining the terms and conditions of the sale.
• It summaries the terms and conditions for the procuring building materials, price, payment terms, and timelines.
4. Lease Deeds:
• A lease deed / agreement is a contract between the developer and the tenant that outlines the terms of renting a property.
• It specifies the lease term, rent payable, security deposit, maintenance responsibilities, termination and other terms and conditions.
5. Assignment Agreements:
• The agreement allow a party to assign (transfer) their rights and obligations of units to another party.
• This can be a way to transfer of allotment without actually purchasing it.
6. Escrow Agreements:
• Escrow agreements are generally used in real estate transactions to hold funds or documents until a predefined condition is met.
• Generally the real estate escrow accounts are also known as RERA escrow accounts.
7. Sale and Purchase Agreements (SPAs):
• Agreement among investors/partners in a real estate deal, binding contracts that obligate buyer to purchase and a seller to sell a property.
• The terms and conditions includes the purchase price, payment terms, and any contingencies.
8. Agreement for Sale:
• AFS is a legally binding agreement between a buyer and seller that details the terms and conditions of a property sale.
• It outlines the property details, purchase price, payment schedule, and the date of possession.
9. Maintenance Agreement:
• Generally a tripartite agreement between developer, maintenance agency and the owner of unit for maintenance of project.
• It outlines obligations and responsibilities of each party in maintaining the operation of common areas, club, electricity, water, security in a real estate project.
10. Underwriting Brokerage Agreement:
• The underwriting brokerage agreement combines elements of both brokerage and underwriting, ensuring a sale of units is completed and minimises risk for the real estate developer.
• It detail the selling the units, as well as the assessing the project's viability.
Disclaimer: This blog is strictly for informational purposes only and do not contain any legal advice. Please obtain expert opinion before acting on anything you read on this site.