A Joint Development Agreement JDA is a written agreement between both the parties i.e. the land owner and builder or developer wherein one gives land for development to the builder and the builder agrees to build the project with his skilled team of different kinds of workers to a finished apartment/ or any civil project. Here both the land owner and builder pool their concerned resources and share the profit in the flats or as per their agreed terms and conditions. The Joint development agreement is done on a stamp paper in a registered document at the Concerned Sub-registrar office by paying fees with all the terms and conditions mentioned in it with witnesses signed.
ADVANTAGES OF JOINT DEVELOPMENT AGREEMENT
Less capital investment for both parties and not a burdening fact for developers.
A very minimalistic initial investment is needed for both the parties like a land owner gives his land to develop and a builder puts his skilled resources to build the property to its final stage.
land owner and builder have a win-win scenario in a joint development agreement. Because builder doesn’t have land to build and has skilled resources to develop a final project. And the land owner doesn’t have skilled resources to develop a project, so both pool in and share the project to develop and profit as well.
How much knowledge about the Joint Development Agreement
Check all the list of documents of the land owner and its title deeds from its initial stages, From whom this land had mutated and infected before NALA. It’s a family tree and should be free from all encumbrances and litigations.
Duly signed and agreed on terms and conditions, MOU Memorandum Of Understanding between both the parties. And should be registered in the Sub-Registrar office.
A buyer must get all the documents from the land owner as it is not a transfer of title deed. the land owner has to get NOC No Objection Certificate from the developer or builder to sell the property from Land owner share to the buyer. To avail a loan to develop the land, both the parties should appropriately register the JDA.