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Shared Appreciation Agreement Template for India

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Key Requirements PROMPT example:

Shared Appreciation Agreement

"I need a Shared Appreciation Agreement under Indian law for a residential property investment where my company will provide 30% of the property value in exchange for 40% of future appreciation, with the agreement commencing March 2025."

Document background
The Shared Appreciation Agreement is a sophisticated financial instrument used in the Indian real estate and investment markets when parties wish to share in the future increase in value of a property. This document is particularly relevant when investors provide capital or other consideration in exchange for a share of future property appreciation, rather than traditional interest or fixed returns. It details the initial property valuation, investment amount, method of calculating appreciation, sharing percentages, trigger events for realization, and payment terms. The agreement must comply with Indian legal requirements, including the Transfer of Property Act, Registration Act, and applicable stamp duty laws. It's commonly used in property development projects, investment structuring, and alternative financing arrangements where traditional debt instruments may not be suitable.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement

2. Background: Context of the agreement, including property details and purpose

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Property Details: Comprehensive description of the subject property and its current valuation

5. Financial Terms: Base value, investment amount, and other financial considerations

6. Appreciation Calculation: Method and formula for calculating property appreciation

7. Sharing Mechanism: Terms for sharing the appreciated value between parties

8. Payment Terms: Timeline and method for appreciation payments

9. Rights and Obligations: Detailed responsibilities of each party

10. Property Maintenance and Management: Requirements for maintaining and managing the property

11. Event of Sale or Transfer: Procedures and obligations when the property is sold or transferred

12. Representations and Warranties: Standard representations and warranties from all parties

13. Default and Remedies: Consequences and remedies for breach of agreement

14. Term and Termination: Duration of agreement and termination provisions

15. Governing Law and Jurisdiction: Applicable law and jurisdiction for disputes

16. Notices: Process for serving notices between parties

17. General Provisions: Standard boilerplate clauses including amendments, assignments, etc.

Optional Sections

1. Refinancing Provisions: Include when refinancing of the property might be contemplated during the agreement term

2. Third Party Rights: Include when other parties might have interests in the property

3. Insurance Requirements: Include when specific insurance coverage needs to be maintained

4. Property Development Rights: Include when property improvements or development might be undertaken

5. Early Exit Mechanisms: Include when parties want flexibility for early termination

6. Dispute Resolution: Include when parties want specific arbitration or mediation procedures

7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

8. Tax Provisions: Include when specific tax arrangements need to be addressed

Suggested Schedules

1. Property Description Schedule: Detailed legal description of the property including boundaries and title details

2. Valuation Schedule: Initial property valuation report and methodology

3. Calculation Schedule: Detailed formulas and examples for appreciation calculations

4. Payment Schedule: Timeline and structure of any regular payments or distributions

5. Property Documents: List of relevant property documents and certificates

6. Permitted Modifications: List of allowed property modifications or improvements

7. Form of Notices: Template formats for various notices under the agreement

8. Required Consents: List of necessary third-party consents and approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

















































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Relevant Industries

Real Estate

Banking

Financial Services

Property Development

Investment Management

Housing Finance

Construction

Asset Management

Relevant Teams

Legal

Real Estate

Finance

Investment

Risk Management

Compliance

Treasury

Asset Management

Property Management

Valuations

Relevant Roles

Real Estate Manager

Investment Director

Legal Counsel

Property Development Manager

Finance Director

Investment Analyst

Risk Manager

Compliance Officer

Asset Manager

Portfolio Manager

Treasury Manager

Real Estate Analyst

Property Valuation Specialist

Transaction Manager

Contract Administrator

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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