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A CONTRACT FOR THE CONSTRUCTION AND DELIVERY OF A
RESIDENTIAL HOUSE |
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This agreement is made and entered between Karakore Real Estate
PLC, a real estate development company, registered under the law
of Ethiopia and having its head office at Addis Ababa, Kolfe Keranio
sub city, Kebele 04, House No-------- hereinafter referred to as
“Developer" on the one part.
And
Mr./Ms:__________________________________________________________
Address:
_______________________________________________________
Telephone P.O.Box: E-mail
The prospective owner of a residential house to be constructed
under the terms of this agreement hereinafter referred to as the
"Client" on the other part.
WHEREAS the Developer has secured a land on a lease
basis at convenient location in Addis Ababa, Kolfe keranio sub city,
Kebele 04 / Karakore area on which it is planning to develop residential
houses,
WHEREAS that the location of the land is in the interest of
the Client, and the Client is desirous to employ the Developer to
build residential house that meet his/ her financial capacity and
personal requirements;
NOW THEREFORE the Developer and the Client have freely consented
to all the terms and conditions contained herein as follows:-
The scope of this Agreement relates to Build the residential house
on the selected plot of land in line with the specification with
utility lines in accordance with the basic standard requirements of
the country, Handing over and Transferring the ownership title there
of.
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TYPE AND SPECIFICATIONS OF THE HOUSE |
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2.1
The type of the House
agreed to be built is _________
2.2
The plot area is square
meters located at the Developers site
Block
Plot No.
.
2.1 The built up area of the
house is
square
meters.
Ground
Floor. |If applicable|
First
Floor. |If applicable|
Second
Floor. |If applicable|
2.3
The house will have totally rooms
the details of which as follows;-
2.4
The
module of the House, floor area and the number of rooms, type and
quality of building materials, specification and other related plans
i.e. structural, electrical and sanitary designs and works shall
be in accordance with Annexes attached to this agreement, and shall
form an integral part of same.
The
Developer shall furnish the house with utilities
i.e.
electricity, water and telephone
line at its own expense.
A registration fee of Birr
____________(Birr ________), which is non refundable in any way
is effected by the client to the Developer.
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COMMENCEMENT OF CONSTRUCTION |
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5.1
Unless otherwise there is a force majuare or beyond our control
the developer shall start the construction of the house with in
three months from the date of signing of this contract.
5.2
If the developer
fails to start the construction with out good cause with in the
time limit mentioned above, the client has a right to invalidate
the contract and collect back his/her/ its money. In this case the
developer has to refund the client's money as soon as possible with
out any preconditions.
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PRICE AND TERMS OF PAYMENT |
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6.1 The
price of the House Shall be
?
Ethiopian Birr including 15%VAT.
6.2
The Terms of payment of the sales price shall be as follows:-
15%
of the total sales price i.e. Ethiopian
Birr ?
upon signing of the contract.
15%
of the total sales price i.e. Ethiopian
Birr ?
upon completion
of the foundation.
25%
of the total sales price i.e. Ethiopian
Birr ?
upon completion of brick work..
25%
of the total sales price i.e. Ethiopian Birr
? upon
completion of roofing.
20%
of the total sales price i.e Ethiopian
Birr ?
upon completion of finishing & hand over the key.
6.3
Except
the first payment which is 30% of the total price, the remaining
payments shall be effected to the Developer within
Thirty (30)
days after the receipt of the payment notification by the client
at his\her\its address mentioned herein above.
6.4 If the Client fails to effect the payment
as provided under article 6.3 He\she\it shall pay to the Developer
from the expiry date of the 30 days time limit 0.05%damage per day
on the unpaid balance of the matured sum.
6.5 I f the Client fails to pay in accordance
to Article 6.3. and 6.4 herein above within ninety (90) days, the
developer shall have full power to invalidate and bring an end to
the contract and shall deduct
20%(twenty percent) from payments effected by the client as damage and return
the remaining balance. In case of invalidation of the contract the
client shall not pay the damage provided under articles 6.4 of this
contract.
6.6
If the Client wants to change the finishing materials standard after
the contract agreement, s/he will have to pay the extra cost.
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HANDING OVER AND TRANSFER OF OWNERSHIP TITLE |
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7.1.
The
Developer shall hand over the house within eighteen (18) months
from the commencement of construction. If the Developer finds it
difficult to honor the period of handing over by factors outside
its control, it shall have the right to extend the period for three
months.
7.2
The Developer shall ensure that the House
is constructed in accordance with the site or floor plan, specifications
and designs on the day of handing over. It shall also ensure availability
of utilities i.e. elctricity, water, telephone line. The Hand
over of the House shall be executed in writing.
7.3
Within three months after the hand over the Developer shall give
full set of documents to the client to enable the latter to transfer
the ownership title of the house and the lease agreement in his/her/its
own name .The Developer is also duty bound to facilitate the ownership
and lease agreement transfer and to give any assistance the client
reasonably requires.
7.4
The client shall cover all expenses and payments for the transfer
of the ownership title of the house.
7.5 The Client shall settle the 80% outstanding
lease balance.
Immediately after hand over
of the house by the builder to the client, the lease agreement entered
between the builder and the pertinent Regional Government Authority
signed on November 23,2004 shall continue with the Client instead
of the Developer. The Developer shall facilitate such arrangement.
The rate of the land lease is Birr 319.39/ three hundred and nineteen
39/100 birr/per sq. meter, for 99/ninety nine/ years.
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DEVELOPER’S GUARANTEE AND RECTIFICATION |
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8.1
The Developer shall stand responsible for
24
months
for any structural defects unless caused by natural causes or mishandling
by the Client.
8.2
The Client is duty bound to notify in writing as soon as he/she/it
witnesses the defects, if any.
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APPLICABLE LAW AND SETTLEMENT OF DISPUTES
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9.1
The applicable
law for this contract shall be the laws of The Federal Democratic
Republic of Ethiopia.
9.2
All disputes arising from this contract
shall be referred to arbitration tribunal which shall be composed
of three arbitrators.
9.3
The party desirous to initiate arbitration
proceedings shall elect his/her/its arbitrator and serve a written
request the other party to elect his/her/its arbitrator.
9.4
Within 30 (thirty) days of receipt
of the notice mentioned above under 9.3 the other party shall notify
the name of his/her/its arbitrator. In the event that the other
party fails to appoint his/her/its arbitrator within 30 (thirty)
days from the date of receiving the written notice, the case shall
be referred and decided by the sole arbitrator appointed by the
party who initiated the arbitration proceeding.
9.5
The two arbitrators shall elect the umpire to preside over the arbitration
proceeding. In the event the two arbitrators fail to elect the umpire,
the Court shall appoint.
9.6
The venue of arbitration shall be in Addis Ababa.
9.7 The decision of the arbitrators shall
be non appeal able and final on both parties.
9.8
The language of arbitration shall be Amharic.
Any notice to be given under this Agreement shall be in writing.
Where the notice is served it shall be sent by registered mail or
delivered to the party's address referred in the introductory paragraph
of this agreement or to authorize representative, unless either
party is notified in writing of a different address to be used.
This Contract shall come in to effect upon the
date the parties hereto affix their signatures.
INTENDING TO BE LEGALLY BOUND, this Contract
made and executed in
Addis Ababa this _____________________ day of _____________________.
FOR THE Developer
FOR
THE CLIENT
_______________________
_______________________
_______________________
_______________________
WITNESS
NAME
SIGNATURE
DATE
1. __________________ ________________
__________________
2. __________________ ________________
__________________
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