Development Fee Agreement Template for India

The Development Fee Agreement is essential for real estate and infrastructure projects in India where one party engages another for development services in exchange for fees. This document is commonly used when a property owner or investor seeks professional development expertise, or when a master developer delegates development responsibilities to another entity. The agreement must align with Indian contract law, RERA requirements, and state-specific regulations. It typically covers development scope, fee calculations, payment schedules, service standards, and compliance obligations. The document is particularly important in structured development projects where clear delineation of responsibilities and compensation is crucial for project success. Usage scenarios include commercial developments, residential projects, mixed-use developments, and large-scale infrastructure initiatives.

1. Parties: Identification and details of the parties entering into the agreement

2. Background: Context of the development project and relationship between parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Development Services: Detailed description of development services to be provided

5. Development Fee Structure: Breakdown and calculation methodology of development fees

6. Payment Terms: Timeline and conditions for fee payments, including milestones

7. Obligations of Developer: Responsibilities and commitments of the developer

8. Obligations of Client: Responsibilities and commitments of the fee-paying party

9. Term and Termination: Duration of agreement and circumstances for termination

10. Representations and Warranties: Standard and specific warranties from both parties

11. Regulatory Compliance: Compliance requirements under RERA and other applicable laws

12. Intellectual Property Rights: Ownership and usage rights of development plans and materials

13. Confidentiality: Protection of confidential information shared during the project

14. Dispute Resolution: Process for resolving disputes between parties

15. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction