ABHINANDAN JAIN (CA Student) 09 July 2015

Joint venture in promoting &; developing vacant land

Facts:I want to enter into an contract or agreement for 60:40 Ratio Joint venrure for developing and promoting the vacant land with the land owner.

Questions

Q1: First of all what are types of agreement that i can enter with land owner. My role is to develop (or get it developed by third party) and land owner is asking for Advance of RS 3 crore adjustible and ratio is 60:40. It means 40% of the property is to be given to land owner at cost after full developement. (say part or full building with flats loaded)

Q2:What are the legal formalities that are reqd. in execution of the agreement or contract with land owner.

Q3: If i enter anotrher contract with thrid party for developing and constructing the property, then again type of agreement can be made with legal formalities

Q4: In what i should operate i.e. Whether Partnership firm with third party or LLp or pvt company. My role will be obtaining Land and appoint developer who will develop the vacant land by their team of contractors etc in consideration of Rs 700 extra upon Actual cost of construction and then i'l also be responsible for selling the flats constructed in these lands.And then ultimately will give 40% share of property will be given to land owner in consideration of land obtained.

Q5:Is there any other type of Operation model prevalent in such promoting industry, then please let me know

thank you for reply in advance..

Reply Follow

3 Replies

Jatin Mittal (Corporate Lawyer) 11 July 2015

Hi Abhinandan

You need to enter into a 'collaboration agreement' or the 'development agreement' by whatever name called, the terms and conditions will remain the same. There is no legal issue in such agreements, as we have been advising many clients on the same lines. The main concern that comes in such agreements is who shall get the approvals from the government bodies, who shall pay for the costs of approvals, etc. Also, it is very important to lay down the points of payment terms carefully and clearly.

I can help you in the drafting of such agreement. However, for any clarification, you can write to me at mittaljets@gmail.com, no charges for the consultation.

ABHINANDAN JAIN (CA Student) 14 July 2015

please check ur mail..

nareshnk 30 June 2022

The above is a very important question. It is not only relevant to the land owner but also to the developer as well. The land owner has to be aware of all these legal formalities and rules that are required in execution of the contract or agreement with third party. An Agreement is a document between two or more parties, usually one party being the owner and another party being a third party.