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The Encroachment Agreement is a crucial legal instrument used in Indian property law contexts where one party's structure, building, or usage extends onto another's property, either intentionally or unintentionally. This document becomes necessary when encroachment is discovered and parties wish to resolve the situation amicably without resorting to litigation. The agreement typically includes detailed property descriptions, extent of encroachment, survey reports, and mutually agreed resolution terms. It must comply with various Indian legislations including the Transfer of Property Act 1882, Registration Act 1908, and relevant state-specific property laws. The document serves multiple purposes: it formally acknowledges the encroachment, protects the original owner's rights, provides legal certainty to both parties, and establishes clear terms for either removal, compensation, or continued use under specific conditions.

1. Parties: Identification of the property owner (First Party) and the encroaching party (Second Party), including full legal names, addresses, and their legal capacity

2. Background: Recitals explaining the circumstances of the encroachment, property ownership details, and the parties' intention to resolve the matter

3. Definitions: Key terms used in the agreement including 'Encroachment', 'Property', 'Encroached Area', 'Effective Date', and other relevant terms

4. Nature and Extent of Encroachment: Detailed description of the encroachment, including its measurements, location, and nature

5. Acknowledgment of Encroachment: Second Party's formal acknowledgment of the encroachment and First Party's rights

6. Terms of Resolution: Agreed solution to the encroachment situation (removal, compensation, lease, purchase, etc.)

7. Timeline and Implementation: Specific timeframes for implementing the agreed resolution

8. Compensation and Costs: Details of any payment or compensation, including amounts, payment schedule, and responsibility for associated costs

9. Representations and Warranties: Standard warranties about property ownership, authority to enter agreement, and accuracy of information

10. Indemnification: Protection clauses for the property owner against future claims or damages

11. Governing Law and Jurisdiction: Specification of applicable law and courts having jurisdiction

12. Notices: Process and addresses for formal communications between parties

13. Termination: Circumstances under which the agreement can be terminated and consequences