The Real Estate (Regulation and Development) Act, 2016 or RERA, is a central legislation that aims to regulate the real estate sector in India. The act has brought about significant changes in the real estate market, including the introduction of standard agreements that need to be followed. One such agreement is the development agreement.

The development agreement is a legal document that defines the terms and conditions between the developer and the landowner for the development of a real estate project. It is a crucial document that lays down the rights and responsibilities of both parties and serves as a blueprint for the entire project. In accordance with RERA, the development agreement must be in a specific format to ensure transparency and protect the interests of both the developer and the buyers.

The following are the key components that must be included in the development agreement format under RERA:

1. Project details: The agreement should have a detailed description of the project, including the location, land details, and total area of the project.

2. Scope of work: The development agreement should define the scope of work of the developer, including the construction, design, and completion of the project.

3. Timelines: The agreement should include a timeline for the completion of the project, as well as key milestones and timelines for each phase of construction.

4. Payment terms: The payment terms should be clearly defined, including the payment schedule, instalments, and penalties in case of default.

5. Rights and obligations: The document should list out the rights and obligations of both the landowner and the developer, including their respective responsibilities for obtaining approvals, licences, and permits.

6. Dispute resolution: In case of any disputes, the agreement should contain a clause for dispute resolution, outlining the arbitration or mediation process.

7. Sale agreement: The development agreement should also include a clause that mandates the execution of a separate sale agreement with the buyers, in accordance with RERA guidelines.

It should be noted that the development agreement format under RERA is an essential component of the real estate development process. It ensures transparency and accountability, protects the rights of both parties, and helps in creating a fair and equitable real estate market for all stakeholders. Therefore, it is crucial to follow the guidelines laid down by RERA and use a legally sound and comprehensive development agreement format.