This Fractional Property Ownership Agreement (“Agreement”) is made and entered into on this _ [Date] _ by and between:
PARTY A: [Company Name], a Limited Liability Partnership (LLP) duly registered under the laws of India, having its principal place of business at _ [Address] _ (“Company” or “Agent”).
PARTY B: [Investor Name], an individual or entity investing in fractional ownership of the property described herein (“Investor”).
- Definitions
1.1. Fractional Ownership Unit: The Investor shall own a fractional interest in the property located at _ [Property Address] _, represented by a specific fraction of the total value of the property.
1.2. Property: The real estate property located at _ [Property Address] , with a total value of ₹ [Total Property Value] _.
1.3. Loyalty Benefit: A loyalty incentive provided to the Investor for holding their fractional unit.
- Ownership and Rights
2.1. The Investor shall own __% of the total property through fractional units. Each unit represents a portion of the property, and ownership is proportional to the number of units owned by the Investor.
2.2. The Investor has the right to:
Transfer or sell their fractional ownership under the rules of the co-ownership agreement.
Receive rental income or other applicable earnings from the property, if applicable.
Participate in decisions affecting the property based on their percentage of ownership.
2.3. The Company will manage all property-related operations, including advertising, marketing, property maintenance, and other administrative duties.
- Payment and Pricing
3.1. The price for each fractional ownership unit is ₹ _ [Price per Unit] _. The Investor agrees to pay the Company for their fractional interest.
3.2. Payment shall be made via _ [Mode of Payment] _ upon execution of this Agreement.
3.3. The Investor shall receive a Loyalty Bonus based on the rental income or any capital appreciation generated by the property, as specified in Schedule A.
- Transfer and Sale of Units
4.1. The Investor may sell or transfer their fractional units subject to the provisions in the Co-Ownership Agreement. The Company will facilitate the sale or transfer process.
4.2. Any transfer of ownership must comply with the applicable laws of India and the terms of this Agreement.
- Loyalty and Returns
5.1. The Investor may receive loyalty benefits based on the holding period of their fractional units. These benefits may be in the form of rental income share, capital gains, or other promotional incentives.
5.2. The Company guarantees that the fractional units are legally registered under the Special Power of Attorney (SPA) to ensure the Investor’s right to ownership.
- Legal Compliance
6.1. This Agreement shall be governed by the laws of India and is subject to the jurisdiction of _ [Specify Jurisdiction] _.
6.2. Any disputes arising out of or in connection with this Agreement shall be resolved by arbitration in _ [Location] _.
- Miscellaneous
7.1. Amendments: Any amendments to this Agreement shall be made in writing and signed by both parties.
7.2. Entire Agreement: This Agreement constitutes the entire understanding between the parties.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above.
Signature of Investor: __________
Signature of Company Representative: __________