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Property Investment Agreement Template for India

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Key Requirements PROMPT example:

Property Investment Agreement

"I need a Property Investment Agreement for a foreign corporate investor planning to invest INR 50 crore in a mixed-use development project in Mumbai through a Special Purpose Vehicle, with specific attention to FEMA compliance and phased investment structure starting March 2025."

Document background
The Property Investment Agreement serves as a crucial legal instrument for structuring and documenting property investments in India. It is essential when investors (domestic or foreign) seek to invest in real estate assets, whether directly or through investment vehicles. The agreement must comply with various Indian regulations, including the Transfer of Property Act, RERA, and state-specific property laws. This document is particularly important given India's complex property rights framework and varying state-level regulations. It typically includes detailed provisions on investment terms, property management, profit sharing, exit rights, and dispute resolution mechanisms, while ensuring compliance with local registration requirements and stamp duty obligations. The agreement is adaptable to various investment structures, from simple bilateral arrangements to complex multi-party investments involving SPVs or REITs.
Suggested Sections

1. Parties: Details of the investor(s) and property owner(s)/developer(s), including full legal names, addresses, and registration details for companies

2. Background: Context of the investment, brief description of the property, and purpose of the agreement

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

4. Investment Structure: Details of the investment amount, payment schedule, and form of investment (equity, debt, or hybrid)

5. Property Details: Comprehensive description of the property, including legal title, boundaries, and current encumbrances

6. Investment Terms: Key terms including investment period, expected returns, profit sharing mechanisms, and exit provisions

7. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and the property's status

8. Rights and Obligations: Detailed responsibilities of each party, including management rights, decision-making authority, and reporting requirements

9. Exit Mechanisms: Procedures for termination, transfer of interests, and buy-out provisions

10. Governance: Decision-making process, management structure, and voting rights

11. Financial Provisions: Details of accounting, distributions, and financial reporting requirements

12. Default and Remedies: Events of default and corresponding remedies available to parties

13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

14. Confidentiality: Obligations regarding confidential information and its protection

15. General Provisions: Standard clauses including notices, amendments, and severability

Optional Sections

1. Foreign Investment Compliance: Required when foreign investors are involved, detailing FEMA compliance and RBI approvals

2. Development Rights: Included when the investment involves property development or construction

3. Property Management: Required when the agreement includes ongoing property management services

4. Environmental Compliance: Necessary when the property has specific environmental considerations or requirements

5. Special Purpose Vehicle: Include when investment is structured through a separate legal entity

6. Tag-Along and Drag-Along Rights: Required in cases of multiple investors or anticipated future stake sales

7. RERA Compliance: Mandatory for investments in ongoing real estate projects under RERA jurisdiction

8. Tenant Rights and Obligations: Include when the property is currently tenanted or letting is part of the investment strategy

Suggested Schedules

1. Schedule 1 - Property Details: Detailed property description, including legal title, boundaries, and survey numbers

2. Schedule 2 - Investment Structure: Detailed breakdown of investment amounts, payment schedules, and valuation methodology

3. Schedule 3 - Due Diligence Reports: Summary of legal, technical, and financial due diligence findings

4. Schedule 4 - Financial Projections: Expected returns, cash flow projections, and financial models

5. Schedule 5 - Property Documents: List of title documents, permits, and certificates

6. Schedule 6 - Management Structure: Detailed governance and management procedures

7. Appendix A - Required Approvals: List of regulatory and statutory approvals required or obtained

8. Appendix B - Form of Notices: Template formats for various notices under the agreement

9. Appendix C - Property Plans: Architectural plans, layouts, and development plans if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























































Clauses









































Relevant Industries

Real Estate

Property Development

Construction

Investment Management

Financial Services

Hospitality

Retail

Commercial Real Estate

Residential Real Estate

Industrial Real Estate

Infrastructure

Urban Development

Asset Management

Relevant Teams

Legal

Real Estate

Investment

Compliance

Finance

Risk Management

Business Development

Operations

Due Diligence

Valuation

Property Management

Asset Management

Relevant Roles

Real Estate Investment Manager

Property Developer

Investment Analyst

Legal Counsel

Property Manager

Investment Director

Chief Investment Officer

Real Estate Portfolio Manager

Asset Manager

Compliance Officer

Due Diligence Officer

Financial Controller

Risk Manager

Business Development Manager

Property Valuation Expert

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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