Joint Venture Agreement In Kerala

As properties become scarce in first-class urban areas, older homes are increasingly in demand by developers. One of the most common alternatives to direct sales is the development of the joint venture. The developers enter into an agreement with the landowners, under which the landowners retain ownership of the land and the owners demolish the existing structure, construct a residential building in their place and offer the owner some apartments or apartments as compensation. Suppose the land area is 5,000 square feet with a market value of Rs. 2.5 crore. The client, which wants to develop the land and transform it into an apartment building, could propose to develop a 4-storey building with 16 individual dwellings, of which it would offer four apartments to the owners at the same time as a certain cash payment. The number of units offered to the landowner as part of the compensation is based on factors such as prevailing land costs, construction costs and other related expenses necessary for the demolition of the old house and the completion of the new project. Often, in addition to housing, part of the total cost is reported in cash. Normally, the ratio is 70:30, with housing worth 70 percent of the total cost and the rest reported in cash (but not necessarily cashless). In some cases, while the land is developed, the landowners are housed in another house. In this case, the rent and other costs are borne by the owners until the apartments are fully ready for delivery. The following factors are considered by potential investors when structuring a joint venture.

Jointventuree.com, joint venture, joint venture, joint venture, joint venture to rebuild the property through the joint venture in Chennai Let`s start by understanding what a joint venture is and its terms. If, for some reason, the developer has not presented itself as a party to the sales contract, at least the developer should be one of the confirmation cookies. Similarly, similar precautions should be taken, while the registered deed of sale of the property will be executed and received in due time. How will this model have an advantage over the development of the joint venture? Under this option, funders bring not only the necessary expertise to carry out the residential development, but also additional services such as construction financing, architectural know-how, project management team and project marketing. Landowners only have to watch the series of developments that take place to turn their raw land into productive assets. In a typical common development scenario, the owners enter into a JDA with the developer who sets the terms of the agreement, for example. B the ratio between the distribution of the built area in the proposed building, the advance (refundable or non-refundable), the time of completion of the construction, the consequences in case of delay / default, the power to obtain authorizations, carry out the construction, mortgage or sell the developer`s share, etc. As is currently the case, there is no provision for the registration of a JDA (including amendments or additional documents), which would be valid and enforceable even without registration. Participants in joint ventures can be any combination of individual investors, partnerships, companies or trusts.

However, a joint venture is not in itself a legal form of organization. To specify capital contributions, rights, obligations, profit-making, etc., it is necessary to create a joint venture contract or a commercial entity. The choice of the form of organization used to accommodate these different groups of investors could be a partnership, a company, pvt. Ltd or a trust. Partnerships are often the vehicle of choice in real estate joint ventures. If the owner(s) retain their share of the built-up area, the construction contract(s) must be concluded with the developer and the developer must be registered. Stamp duty and registration fees amount to 2% of the construction costs and this document must be registered at the sub-register office responsible for the location of the property. . . .

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