This agreement is made on ____ day of _________ 2007 between Mr. __________________ having a place of residence at ____________________(hereinafter referred to as the First Party) and Ms. _____________________ having a place of residence at ____________________(hereinafter referred to as the Second Party) (the First Party and the Second Party jointly being referred to as Parties hereinafter).
Whereas the Parties have jointly bought a house property being ________________
_______________________________ (hereinafter referred to as the House Property) vide an agreement dated _________ entered into with _____________________ (hereinafter referred to as the Purchase Agreement).
Whereas the Parties have jointly taken a loan of Rs. 80 from ABC Bank (Bank) vide loan agreement dated __________________ (hereinafter referred to as the Loan)
Whereas the Parties are desirous of laying down their mutual rights and obligations.
Now this agreement witnesses as under:
- The beneficial ownership of House Property and the manner of funding is as is as under:
Cost of the House Property Rs. 100
First Party Second Party
Share of each Party in the ownership 40% 60%
Cost contributed by each party 40 60
Share of loan 40 40
Own contribution made vide
Cheque no. 0 20
2. Each party acknowledges the share of the other party in the House Property and acknowledges receipt of the own contribution made by the other party.
- The First party agrees to pay the installment amount due on the Loan as per schedule 1 enclosed and the Second Party agrees and confirms that it will duly reimburse its share of the installment on the same due date to the First Party. The First Party will be entitled to claim interest @ 18% p.a on any delays beyond 5 days from the due date for receipt of this reimbursement. The First Party will be fully liable for any delay in payment of installment to the Bank provided the Second Party has paid its share of the installment in time. Otherwise, each party will be liable to bear any interest/cost/penalty payable to the bank prorata to the extent of any delay by either party.
- Both Parties agree to share any income that arises from the House Property in proportion of their share in the ownership.
- Both Parties agree to claim tax benefits on repayment of the Loan only in proportion to their share of the Loan.
- Both Parties indemnify each other against any cost/expenses/penalty/interest that may be borne by the House Property/the other party due to the default of one of the Parties.
As a token of their acceptance to the above both Parties have signed hereunder:
(First Party) (Second Party)