Procedure for Joint Development :::

On examination of the property, we will give you an offer for development of your property. This offer basically consists of the percentage of the built up area which shall be offered to you, the amount of security deposit that will be paid and most importantly the specifications for the building. These specifications would determine the selling cost and hence it would present a clear picture of the return you will get. The security deposit is interest free refundable advance which has to be funded back to builder on successful completion of the project. The percentage of area offered to you is arrived at after taking into account several factors such as cost of construction, Quantum of advance required by the landowner, marketing & administrative expenses and most importantly the selling price of apartments in that area. The land owner should be more concerned about the total return he is getting from the development of his land and not the percentage as a higher percentage with lower sales value would result in lesser return on the whole.

If you find the offer attractive, you can indicate your acceptance and hand over a copy of the title documents to enable the builder to get the same verified by their advocate.

If the builder’s advocate approves the title, a draft copy of the Joint Development agreement laying down the terms and conditions of the development is given to the landowner who can go through the same by themselves or get it approved by their advocate.

If the draft of the Joint Development agreement is found to be OK, the same is prepared on stamp paper. This agreement is signed by the Builder & landowner and the builder pays the first portion of the refundable advance to the landowner.

Along with the Joint Development Agreement, the landowner also gives a Power of Attorney to the Builder to apply for the various approvals required for the construction and also to sell the portion of the area coming to the Builder’s share.
All the procedures & formalities & costs for approvals are taken care by the Builder & the landowner need not worry about anything.

The Builder then proceeds to prepare the plan for the building taking into account the requirements of the landowner. Once the plan is ready and approved by the landowner, the same is submitted for approval by the Government Authorities.

After the plans are submitted, the builder takes possession of the land from the owner. At this stage, the balance portion of the refundable advance is paid to the landowner.

On receipt of the approval the Builder commences the construction & marketing of the project.

As and when the apartments of the builders share are sold, the proceeds are received by the Builder in stages and the builder will register the apartments in favour of the buyers.

Out of the apartments of the landowners share, they may like to retain some apartments & sell the balance.

On completion of the project, the apartments being retained by the landowner are handed over to them and the advance (interest free) which was given by the builder at the time of commencement of the project is refunded back to him.