Joint development Agreements
Querist :
Anonymous
(Querist) 02 June 2011
This query is : Resolved
Sirs,
A & B are having same area of lands adjacently.C is the Builder entering into 2 JD Agreements with A & B separately mentioning their respactive description of properties and measurements.
Sale Deed of undividedshare of consolidated land area is executed by C as Power Agent of Both A & B.
A & B have got three apartments each as their consideration for the as per the JDA.
My Doubts are:
1. WHether A,B &C have to make tri party Joint Development Agreement for the combined lands.Whether it has to be registered.
2. If the Agreements are made separately for A & B , how the undivided share of the other Party's Lands are conveyed to A or B for their retained Apartments.
3. Is it possible to sell the undivided shares , (just like to flat buyers)to A & B for their retained share.
Kindly clarify.
Guest
(Expert) 02 June 2011
1. If such Agreement is made, it is good and will have a binding effect on all the parties. Though this joint-development agreement need not be registered, but, to have effective legal sanction in case of future conflicts, it is strongly advisable to get this registered.
2. On the basis of the Joint-development agreement and also being the General Power of Attorney of both the lands, the Agent (Builder) has right to convey the undivided share of both the parties (As you have mentioned, it is just like other flat purchasers). In the sale deed, it will be clearly mentioned that how the agent acquired the powers and developed the property by constructing flats on it. Hence, there will not be more complication regarding transfer of undivided shares of the parties.
3. The retained share will have to be mentioned as part of the property being developed and the undivided share can thus be transferred to the land-owners just like other flat purchasers.
