SP ASSOCIATES

 Adv. Siddhesh Patil

 17 Years Exp

 Joint Development Agreement (Show More)

 Thane , Vashi (Thane)

 View Answers by this Partner (0)

 Profile Views : 347798

Information

Overview

Joint development is a popular method of development of property. Here, an owner of a site and a developer come together to enter into an arrangement to develop a property jointly.

In case the owner of a site decides to develop the property on his own, he will have to arrange for funds, look for a builder, monitor the construction and go through all the associated formalities. The cost of land constitutes a major portion in the cost of development. It is difficult to get finance for the entire cost of a site. An owner has to block a lot of his own funds before he can get any returns.

The option of joint development saves on all these requirements for both the parties. The practice is being followed both by small and large builders without exception. The builder and the owner of the site develop the property on a joint venture basis. The land owner enters into a joint development agreement with a builder. The land is provided by the owner. The builder constructs the flats.

A certain percentage of the area is earmarked for the owner of the site. The owner is entitled to dispose off the constructed property delivered to him under the joint development agreement. The owner may also decide to retain his share of the builtup area, or may sell it off at a later stage without any involvement of the builder. The other flats are sold by the builder directly.

This way, it suits the needs of both the parties. The owner of the site does not have to get into the trouble of constructing the property, nor has he to arrange for funds for construction. At the same time, the builder gets access to land and does not have to raise money for purchase of land. The builder need not block his funds and in fact can use his resources for a number of projects simultaneously. A site owner usually gets 30 to 40 percent share and the balance goes to the builder.

The exact percentage depends on the terms of the agreement. As a procedural aspect, a site owner has to execute an irrevocable general power of attorney (GPA) in favour of the builder. The GPA should be registered on appropriate value stamp paper with the authorities concerned (registrar) in order to be legally binding on both parties. The stamp duty payable for this kind of GPA given to the builder under a joint development agreement is Rs 1,000. This may vary from State to State. After this, the parties enter into a joint development agreement.

The builder then proceeds with the construction of the flats after getting the necessary approvals. In case there is a breach of contract on the part of the builder, either financially or otherwise, the site owner has a right to revoke the GPA. The owner needs to take measures to protect the property till the project is completed and handed over to him.

Once the plan is approved, the owner should get an allocation agreement done recording the constructed area which comprises his share and the area going to the developer. Once the building is ready and the allocation agreement is done, it is better that a deed of declaration is executed recording the constructed area, which would reflect the area constructed for the site owner under the joint development agreement.


Can't read the image? click here to refresh.

Enter the code :

Name : Adv. Siddhesh Patil

Law Firm Name : SP ASSOCIATES

Country : India

City : Thane

State : MAHARASHTRA

Practicing Since: 2008

About Your Firm : We are working since 2008 having ample experience in the field of property documentation, document vetting, property search and title clearance certificate and registration of all kinds of documents related to property

Manpower/Employee Details

Sr Employee Associated Sr Employee Enrollment/Reg.No Sr Employee Enrollment/Reg.State
Siddhesh Patil MAH-2755/2008 Maharashtra
Jr Employee Associated Jr Employee Enrollment/Reg.No Jr Employee Enrollment/Reg.State
Hanumant Bhise MAH-6488-2011 Maharashtra

 

  Power of Attorneys ( Drafting General Power of Attorney )
  Power of Attorneys ( Drafting Special Power of Attorney )

 Legal & Drafting

  Lease/Rental Agreements ( Commercial Office Rental Agreement )
  Affidavits ( Gas Affidavits )
  Power of Attorneys ( Special Power of Attorney )
  Registration Assistance ( Apartment )
  Legal Opinion (Written) ( Plots )
  Agreements/Deeds ( Rectification Deed )
  Lease/Rental Agreements ( Commercial Shop Rental Agreement )
  Affidavits ( General Affidavits )
  Power of Attorneys ( Revoke/cancel Power of Attorney )
  Registration Assistance ( Villas )
  Legal Opinion (Written) ( Apartment )
  Agreements/Deeds ( Relinquishment deed )
  Lease/Rental Agreements ( Commercial Lease Agreement )
  Affidavits ( Other Affidavits )
  Wills ( Make A will )
  Registration Assistance ( Independent House )
  Legal Opinion (Written) ( Villas )
  Agreements/Deeds ( Mortgage Deed )
  Lease/Rental Agreements ( Residential Lease Agreement )
  Property & Documents Inspection ( Plot/Site Insepction )
  Wills ( Make A Codicil )
  Registration Assistance ( Agriculture Land )
  Legal Opinion (Written) ( Independent House )
  Agreements/Deeds ( Exchange Deed )
  Lease/Rental Agreements ( Room Rental Agreement )
  Property & Documents Inspection ( House/Apartment Inspection )
  Consultation on Property ( Property Buying )
  Registration Assistance ( Commercial Property )
  Legal Opinion (Written) ( Agriculture Land )
  Agreements/Deeds ( Release Deed )
  Lease/Rental Agreements ( Leave And Licence )
  Property & Documents Inspection ( Documents Inspection in Govt Office )
  Consultation on Property ( Property Selling )
  Agreements/Deeds ( Agreement of Sale )
  Legal Opinion (Written) ( Commercial Property )
  Agreements/Deeds ( Partition Deed )
  Packages ( Legal Opinion to Registration (Plot/Site) )
  Property & Documents Inspection ( Documents Inspection in Builder Office )
  Notary & Attestation Services ( Get A Document Notarised )
  Agreements/Deeds ( Construction Agreement )
  Affidavits ( Name & Address Affidavits )
  Agreements/Deeds ( Memorandum of Understanding )
  Packages ( Sale Agreement to Registration (Plot/Site) )
  Property & Documents Inspection ( Fraud & forgery Inspection )
  Agreements/Deeds ( Sale deed )
  Affidavits ( Personal Affidavits )
  Agreements/Deeds ( Joint Development Agreement )
  Packages ( Sale Agreement to Registration (Apartment) )
  Property & Documents Inspection ( Agriculture Land Inspection )
  Agreements/Deeds ( Gift Deed )
  Lease/Rental Agreements ( Apartment Rental Agreement )
  Affidavits ( Student Affidavits )
  Packages ( Legal Opinion to Registration (Apartment) )
  Property & Documents Inspection ( Industrial / Commercial Inspection )
  Agreements/Deeds ( Sale Agreement/Deed Review )
  Lease/Rental Agreements ( House Rental agreement )
  Affidavits ( Passport Affidavits )
  Power of Attorneys ( General Power of Attorney )
  Registration Assistance ( Plot )
  Agreements/Deeds ( Construction Agreement Review )

 NRI Services

  Property Search ( Land And Property Search )
  Succession Certificate ( Succession Certificate )
  Power of Attorneys for NRIs ( General Power of Attorney by NRI )
  Power of Attorneys for NRIs ( Special Power of Attorney by NRI )

No Answers Found