Developer's GPA

PA will be executed in favor of other person to act onbehalf of principal.  Any act done by the PA holder will be binding on the principal.

GPA is not sale deed.  It shouldn't contain that you are selling/transferring the undivided share to him.  He has to act on behalf of the executant only.

That's great to know Mr. Rajeev. Thanks so much! Can the JV agreement contain any of the clauses about us transferring our UDS to him? I read elsewhere in this forum that he is only an agent and not a purchaser or transferee of the property per the Transfer Property Act? What does the Transfer Property Act entail? Does the GPA need to be irrevocable? 

Dear Shpk,

You are dealing with your precious immovable property.  Won't you like to protect your interests by getting in touch with a lawyer at your area and get the proper GPA drafted by giving him the full facts and also telling him your concerns.

It is this sort of trying to be penny wise by not approaching the lawyer at the appropriate time, tht people rue in the long run.

My sincere advice to you would be to get a proper GPA drafted through a lawyer.  Yes, we are also lawyers here, but the job in your hand cannot be done in this method of trying to get info on one bit piece of query etc.  It requires a complete and holistic approach.

Thanks Mr. Ramachandran. This GPA was drafted by the builder and sent for us to review.  This is our first JV and I do not live in India currently.  We are a group of co-owners and those in India are at present scruitinizing the document with the lawyers there. But what I am trying to understand is what exactly is a JV - is it a sale to the builder and the buidler constructs or is he just an agent who is developing our property and therefore we shouldn't be directly selling him anything. 

It will depend upon the terms and conditions of the Agreement between the parties and how they describe the same.

In an ideal situation, the JV is one where the parties concerned bring in their capabilities/capacities - for instance one may bring in land, one may bring in money and expertise in the field, collaborate and bring out an asset - in this case the constructed property.

In the above arrangement, nobody has sold anything to anybody else - for instance, the land has not been sold by the land owner to the other jv partner, similarly the person who brings in money has not purchased the land, nor has sold the constructed portion to the land owner.  Ultimately the product i.e. the constructed asset will be sold to the third party(ies) - the landlord conveying to individual flat purchasers the proportionate undivided land underneath, and the builder conveying the constructed portion.  The parties will share the profit in the agreed proportion.  Or the builder retaining certain flats to cover the cost of his construction + profit, while the landlord getting some flats as consideration for the land given by him.

Thanks once again Mr. Ramachandran. I wish all the builders would have this as a motto printed on their walls! Very simple yet fully understandable explanation even for novices like me. I presume when you say that nobody has sold anything or purchased from anybody else, is that because there is no sale deed that is established between the builder and us? 

What other legal proceedings should we be looking out for after the building is constructed? Do we as owners have to be involved in the sale of the extra builder flats to the third parties or is that something that the builder can do by himself using our POA given to him? What are Capital Gains and the Income Tax certificate that I read about in Joint Venture. It is not clear to me. Will this be something that we will have to pay if we are getting a bigger flat from the joint venture than what we have currently?