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Welcome To Contract Easily! ( Consult, Contract, Share,download Legal Matters Easily )
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Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
AGREEMENT BETWEEN BUILDER AND A BROKER FOR SELLING THE FLATS TO BE CONSTRUCTED
THIS AGREEMENT made at .................. on this ............... day of ....................., 2000, between ABC Construction Co. Ltd., a company incorporated under the Companies Act, 1956 and having its registered office at ....................... hereinafter called 'the Builder" (which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the ONE PART;
and Shri XYZ son of Late Shri............................ resident of ........................ hereinafter called "the Broker" (which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include his heirs, legal representatives, executors and administrators) of the OTHER PART.
WHEREAS THE builder is constructing residential flats at ................. more particularly described in the Schedule hereunder written; and wants to sell those flats and for the said purpose the services of the brokers are required.
AND WHEREAS the broker has approached the builder and expressed his consent to act as broker for the sale of the flats on the terms and conditions mutually agreed upon.
NOW THIS AGREEMENT WITNESSES AS FOLLOWS:
1. The builder appoints the broker for selling the flats being constructed by him, more particularly described in the Schedule hereunder written at the price and on the terms and conditions laid down in Annexure 1 to this agreement.
2. The broker will be entitled to the commission at the rate of 5 per cent on the cost of the flats booked by him.
3. The builder hereby represents and warrants that he is having clear and marketable title to the flats, free from any encumbrance, charge, lien, mortgage or attachment. The builder also represents and warrants that the material used in the flats is of best quality.
4. The builder hereby gives the period of six- months hereof for the sale of the flats described in the Schedule hereunder written and he shall not be authorised to sell the flats after the period of six months.
IN WITNESS WHEREOF the parties have set their respective hands to these presents on the date, month and year hereinabove written.
Schedule
Annexure 1
Signed and delivered by ABC Construction Co. Ltd.
through the hands of Shri..............................
Managing Director
Signed and delivered by XYZ
WITNESSES;
1.
2.
Guidelines for Drafting an Agreement Between Builder and a Broker for Selling Flats to Be Constructed:
1. Title: Start with a clear title, such as "Agreement Between Builder and Broker for Selling Flats."
2. Parties: Identify the parties involved - the builder (developer) and the broker. Include their full legal names, addresses, and contact details.
3. Scope of Engagement: Clearly define the broker's role and responsibilities, specifying that they are authorized to market and sell the flats to be constructed by the builder.
4. Commission: Detail the broker's commission structure, including the percentage or flat fee they will receive for each successful sale. Specify when and how commissions are paid.
5. Exclusive Rights: Specify whether the broker has exclusive rights to sell the flats or if multiple brokers may be involved. Clearly outline any territorial or project-specific exclusivity.
6. Obligations: Clearly state the obligations of both parties, including the builder's commitment to providing necessary information, updates on construction progress, and support for marketing efforts.
7. Pricing and Terms: Outline the pricing of the flats and any special terms or conditions applicable to sales, such as payment plans or discounts.
8. Marketing and Promotion: Define the marketing strategies, materials, and responsibilities of both parties regarding advertising, showings, and open houses.
9. Confidentiality: Include a confidentiality clause to protect sensitive project details and pricing information.
10. Duration: Set the agreement's duration, including the start and end dates, and specify any renewal or termination clauses.
11. Governing Law: Specify the governing law and jurisdiction for interpreting and enforcing the agreement.
12. Dispute Resolution: Include a clause detailing the process for resolving disputes, such as arbitration or mediation.
13. Signatures: Ensure that authorized representatives of both parties sign and date the agreement, including space for printed names and titles.
Common Mistakes to Avoid:
Vague Terms: Clearly define the broker's role, commission structure, and obligations to prevent misunderstandings.
Inadequate Marketing Plans: Ensure that the agreement outlines comprehensive marketing strategies and responsibilities to attract potential buyers effectively.
Ignoring Legal Review: Consult with legal professionals to ensure the agreement complies with local real estate laws and regulations.
Lack of Confidentiality Protection: Include provisions to safeguard confidential project information.
Incomplete Commission Details: Clearly specify commission amounts, payment timelines, and conditions for earning commissions.
This agreement is used when a builder or developer engages a real estate broker to market and sell flats in a yet-to-be-constructed project. It formalizes the relationship, defines responsibilities, and establishes terms for collaboration. Careful drafting and legal consultation are crucial to creating an effective and enforceable agreement that benefits both parties involved in the real estate transaction.