Know More About Joint Development Agreement
What is joint development agreement
Joint Development Agreement (JDA) It is an arrangement between the Land owner and the Builder/Developer, where the Land owner contributes his land and the Developer takes the full responsibility of obtaining approvals, construction, launching and marketing the project with the help of financial resources.
What is the purpose of a development agreement
Development agreements are contracts approved by the Planning Commission and Board of Supervisors entered into by the City and a developer to expressly define a development project’s rules, regulations, commitments, and policies for a specific period of time.
Is registration of joint development agreement compulsory
As on date, there is no provision to register a JDA (including amendments or supplemental deeds) and the same would be valid and enforceable even without registration. … The developer may also require a Deed of Power of Attorney pursuant to the terms agreed in the JDA.
Different Forms of Joint Development Arrangement
Owner of an old house is inclined to develop the property in modem style with increased floor area including basement and stilt area which may have been allowed by the regulatory authorities. In such a case the owner hands over the house to the developer for the development and the floors constructed are shared between them. In addition, the developer may provide in a given case certain monetary considerations and alternative residence to the owner to live during the development period. Such arrangement has been seen mostly in the Metro cities.
Large real estate project for development of residential or commercial complexes require huge investment. The developer may not be in position to invest in acquisition of land for development of such project. Therefore, joint development arrangement has been evolved to develop large real estate projects. In such a case, land owner contributes his land whereas the development is undertaken by the developer and the consideration for land is given by the developer to the land owner linked with the development of the project. The consideration in such cases is paid not only in monetary terms but also by sharing developed units in the project as per the agreed terms.