The law desk
DIVESH SHARMA
11 Years Exp
Joint Development Agreement (Show More)
Jaipur , Arjun Lal Sethi Nagar
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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.
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Name : DIVESH SHARMA
Law Firm Name : The law desk
Country : India
City : Jaipur
State : RAJASTHAN
Practicing Since: 2014
About Your Firm : THE LAW DESK is a law firm growing in the Northern – West part of India, which delivers its best of services in matter of trust, efficiency, and satisfaction, to its clients of various sectors. We believe that we grow with the growing satisfaction of our clients in the work they entrust us. This leads us to make further developments and explorations in different avenues of law. We believe in professionalism and with this zeal we follow the ethics of profession and deliver best form ours to the clients. To be the Preferred Law Firm for our clients and take that relationship forward by making ourselves deserving enough to be their advisors and not just a law firm for their various deals. The members of the Firm are qualified from well established Universities and have extensive and rich legal experience and wide national exposure in their respective practice areas. The experience of associates and depth of their expertise combined with an unlimited desire, enthusiasm and energy to serve, has enabled us to effectively and efficiently resolve the clients’ problems and to suggest practical solutions for their complex legal issues. The Firm’s prime concern is “Client Satisfaction” and it is the backbone of its work culture and the Firm takes great pride in consistently adopting the highest professional standards for clients’ satisfaction. We believe that our path to success is more likely to be found when clients have an access to quality guidance along the way in their matters. Considering crucial needs of the clients, as a sense of responsibility we take personal interest in the all-dimensional success of the clients’ concerns. Our commitment to clients for communicative, responsive, value-added, dedicated and focused attitude in their matters along with cost consciousness and commercially pragmatic in our advice and assistance makes us a different and unique law firm in North Western part of India. To maintain this excellence of service to our clients, the Firm strives to recruit, train and retain lawyers and staff of the highest caliber and professionalism. Due to its good working relations with a number of lawyers and law firms in other jurisdictions ensures ready access to formal legal advice in other jurisdictions whenever needed. The Firm is committed to provide a wide range of legal services, both inbound and outbound, covering the requirements of corporate and individual clients in a timely and a cost-effective manner. We understand the value of client’s trust and are keen to respond as per their expectations. We believe in the ideology that a healthy mind resides in a healthy body and only healthy body can delivers good result but we also know that Health is not valued till sickness comes. In order to stay fit and healthy we keep a strict watch on our working habits and follow step counts on daily basis as a part of our working style. We believe that work can only be efficient if our firm is efficient and healthy.
| Sr Employee Associated | Sr Employee Enrollment/Reg.No | Sr Employee Enrollment/Reg.State |
|---|---|---|
| Prateek Kasliwal | (R/1570/2003) | Rajasthan |
| Jr Employee Associated | Jr Employee Enrollment/Reg.No | Jr Employee Enrollment/Reg.State |
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