Kaagazaat

Builder-Floor Collaboration Agreement

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Also called

collaboration agreement
floor-sharing agreement
builder floor scheme agreement
zameen te building banaan da samjhauta
ਬਿਲਡਰ ਫਲੋਰ ਸਾਂਝ ਸਮਝੌਤਾ
plot-owner builder collaboration
floor wise division agreement
do manzil samjhauta

When you need it

A plot owner contributes the land; a small builder constructs the building at its own cost; the finished floors, or a defined share of them, are divided between the owner and the builder instead of — or in addition to — a cash payment. Common for an independent house plot being turned into two, three or four floors in a Punjab town or a Chandigarh peripheral sector.

Not for a large multi-acre or multi-building project with third-party buyers and RERA registration — use the Joint Development Agreement for that. FLAGGED — VERIFY BEFORE RELYING ON THIS FOR A CHANDIGARH PHASE-I HOUSE: this drafter understands there to be a Supreme Court ruling, reported around January 2023, that bars floor-wise division/independent floor ownership of a Chandigarh Phase-I house under the Chandigarh (Sale of Sites and Buildings) Rules and the Capital of Punjab (Development and Regulation) Act, 1952. This drafter cannot independently confirm the exact citation, date or precise scope of that ruling from this repository's own sources, so it is stated here only as "a Supreme Court ruling (verify exact citation)" — confirm the current, exact position with the Chandigarh Estate Office and a lawyer before using this Agreement for any Chandigarh Phase-I site; see lawyerShouldCheck.

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You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is the position for this kind of document. The amount is set by the state the property is in and it changes, so the figure for your own state is worth confirming at the sub-registrar’s office before you pay anything.

Stamp duty

UNCERTAIN — FLAGGED FOR VERIFICATION, NO FIGURE STATED. Whether this Agreement is stamped as a plain Article 5 agreement (a common market practice where the Owner's title is not itself being transferred, only a share of the constructed floors allocated) or as an instrument that in substance conveys an interest in the Builder's allocated share — and so attracts ad valorem conveyance duty on that share's value — depends on exactly how the allocation, any GPA, and any advance possession are structured, and has been the subject of differing practice and differing state amendments across India. Confirm the current position for Punjab and for Chandigarh with the Sub-Registrar or the Collector of Stamps before executing, and see lawyerShouldCheck — this drafter does not print a duty figure or a settled legal position here because none could be confirmed.

Registration

UNCERTAIN — FLAGGED FOR VERIFICATION. A collaboration agreement that only records an arrangement to build and share, with legal title to each party's allocated floor to be conveyed by a separate deed after completion, may not itself require compulsory registration under section 17 of the Registration Act, 1908. An agreement that itself operates to transfer possession or an interest in a defined share of the property can fall within section 17 and require registration, and an unregistered instrument that should have been registered is not admissible as evidence of the transaction it records (section 49). Confirm with the Sub-Registrar which is true of the structure actually used here before treating this Agreement, on its own, as sufficient.

Notarisation

Not legally required for the Agreement itself, though notarising is sometimes done to fix the date terms were settled.

Witnesses

Not legally required, but two witnesses are provided for below given the value and the frequency of later dispute in arrangements of this kind.

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Sample preview — placeholder answers, not your data

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BUILDER-FLOOR COLLABORATION AGREEMENT

This Agreement is made at Ludhiana on 2 April 2026

BETWEEN

Jagtar Singh, resident of House No. 55, Model Town, Ludhiana ("the Owner", which expression includes the Owner's heirs and legal representatives), of the ONE PART;

AND

New Era Builders, of Office No. 8, Feroze Gandhi Market, Ludhiana ("the Builder", which expression includes the Builder's partners and permitted assigns), of the OTHER PART.

1. THE PLOT

1.1 The Owner is the owner in possession of the plot at Plot No. 21-B, Model Town, Ludhiana, measuring approximately 300 square yards ("the Plot").

1.2 An old single-storey house stands on the plot; the Builder shall demolish it at its own cost before construction

1.3 The Builder shall, at its own cost except as stated in clause 4, construct Ground floor plus three upper floors, four units in total on the Plot, in accordance with the following specifications: RCC framed structure, vitrified tile flooring throughout, modular kitchen fittings, aluminium windows, as per the specification sheet attached

2. SHARING OF THE CONSTRUCTED FLOORS

2.1 On completion, the constructed floors shall be allocated as follows:

(a) To the Owner: Ground floor and first floor

(b) To the Builder: Second floor and third floor, together with the right to sell either or both to a third party

2.2 In addition to the floor allocation above, ₹5,00,000 (Rupees Five Lakh only) shall be payable as further consideration between the Parties, as described in the payment terms separately agreed.

2.3 Parking, terrace/roof and common areas: Terrace above the top floor allocated to the Builder’s top-floor unit; ground-floor open area and one covered car parking each allocated to the Owner’s units; staircase and common passage to be maintained jointly

3. TITLE AFTER COMPLETION

3.1 A separate registered deed (sale deed, or exchange/relinquishment deed as appropriate) shall be executed for the Builder’s allocated floors within 60 days of completion, and mutation of each party’s allocated floor shall be applied for separately

3.2 Until legal title to the Builder's allocated floors is conveyed and mutated as above, this Agreement is a contract to allocate and does not by itself operate as a conveyance of the Owner's title in the Plot; the extent to which it nonetheless attracts stamp duty or requires registration is addressed in the formality note above and in the notes a lawyer should check before execution.

4. COST OF CONSTRUCTION

4.1 The Builder bears the entire cost of construction

4.2 Owner to bear the cost of the ground and first floor shell; Builder to bear the cost of the second and third floor shell and all finishing throughout

5. POWER OF ATTORNEY

5.1 The Owner will separately execute a specific power of attorney limited to construction-related approvals only, revocable, with no power to sell the Owner’s own allocated floors

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