Kanchan Khatana And Associates
Kanchan Khatana And Associate's
22 Years Exp
Joint Development Agreement (Show More)
Gurgaon , Chakkarpur
View Answers by this Partner (0)
Profile Views : 19089
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.
Photos
Name : Kanchan Khatana And Associate's
Law Firm Name : Kanchan Khatana And Associates
Country : India
City : Gurgaon
State : HARYANA
Practicing Since: 2003
About Your Firm : Kanchan Khatana and Associates is a full service law firm, headquartered in India, while offering cutting edge blend of capabilities to corporations, individuals and international entities across the globe. We are distinguished not only by the depth and scope of our legal advisory services, but also by unmatched experience and international exposure that enables us to handle deals and cases of any size and complexity. Over the years, we have built a reputation for high quality work, a positive outlook, and the highest standards of service and ethics. The Firm continues to expand and now, we have notably become the counsel of choice. At Kanchan Khatana and Associates, providing effective and efficient assistance to our clients is our foremost aim. The clients benefit from our approach of viewing issues from both a business as well as a legal perspective; focusing on problem avoidance, not just problem solving. With a sophisticated understanding of changing business environment intersecting with law, public policy and technology, the Firm is positioned to protect and advance its clients’ business interests in the present era of globalization. We have a highly qualified and responsive team comprising of young as well as senior legal professionals who have been recognised and honoured for their outstanding contributions in their respective areas of law. Our emphasis is on identifying the client’s needs down to the last detail, ensuring that our work is technically faultless and ultimately managing our projects to surpass our client’s expectations. Our Firm represents varied clients Multinationals, Indian and Foreign Corporate bodies, and individuals in an array of matters.
| Sr Employee Associated | Sr Employee Enrollment/Reg.No | Sr Employee Enrollment/Reg.State |
|---|---|---|
| Jr Employee Associated | Jr Employee Enrollment/Reg.No | Jr Employee Enrollment/Reg.State |
Legal & Drafting
No Answers Found
