Joint Venture


Last Updated on 2 years by ChennaiRealties

Is Joint Development Agreement(JDA) beneficial to the Land Owners?

Joint Development Agreement (JDA) is an Agreement entered into between the Promoter/Builder and a Landowner. It’s for putting up a Residential or Commercial Building Complex. The land can be a vacant one, or one with a building, or one with a building complex. And the Land Owner may be a single person or a group of persons as in the case of the Flat Owners of an older complex, and so on.

Who normally opt for JDA

Owners of Land with a Building, Buildings, or Apartments

Often, the old Apartment Complexes would not have utilised the permissible FSI.  And, many owners may not have the liquid funds to promote any project on their own. In such cases JDA is the ideal way out to exploit the available resource, the land.

Vacant Land Owners

In a sluggish market like the present one, JDA shows an alternative way. When a landowner finds it difficult to find a Buyer, JDA provides an alternative. This way, the Owner may get some money for their immediate need by way of Advance. Also, by this method, the owner can hope to get more from their property. JDA is not only for those who are in immediate need of funds. With JDA landowners who want to make more money are also offer their land for Joint Ventures.

Builders Prefer JDA

Most of the Builders now prefer to Promote their projects through this JDA route. Given the land cost today, many builders prefer this method. In this way, more funds will be available for them to meet the construction expenses. Also, they can get prime land for promoting their prestigious projects.  The Promoters expect the land to be in a prime area for JDA. Many old Housing Board Complexes meet these criteria. Anna Nagar, Thiruvanmiyur etc. have seen such redevelopments. New Modern Complexes arose in those areas by redeveloping the old ones.  In the Old  Housing Board complexes, the FSI  utilised is very low. Vast open spaces available without any construction. This gives much scope for exploiting the land further. It is a clear example of win-win situation for both the builder as well as the land/flat owners. Proportionate to their UDS, the landowners will get compensation. Most of the areas where these Complexes are have metamorphosed into busy areas over a period.

Modus Operandi

For Joint Development, the promoter enters into an agreement with the Land owner. He pays an advance amount and enters into an agreement. He then starts developing the land for construction. It may be an apartment complex or a commercial complex. The landowner gives the General Power of Attorney to the builder for all permits. He applies for Plan permit and related permits. The clauses in the POA and the Agreement are to be carefully drafted. This is so as not to give any room for confusion during the progress of the project.  The agreement provides for compensation to the landowner. He or she gets cash component and a few flats or floor areas in the completed complex. The Floor floor area he gets, he can choose to keep it for himself, sell it himself, or sell it through the promoter. The Supplementary Agreements should state all the details of this sharing. Make clear all these issues before the project commences. The cost of Land in a locality largely determines the sharing ratio. Also are the Construction cost, the Cost of Development of the land and so on.  Sometimes there may be dwelling units in the land or plot where the project is to come up. In such situations, the occupants have to stay in rented premises till the project is complete. The Builder has to meet those expenses. In short, the landowner brings in the land only, and the builder invests the rest. The understanding between the two must remain intact until the project is complete.  The JDA should include complete details. Size, material used, floor area, and amenities provided should be in the agreement. Also, the JDA should give details of the profit-sharing ratio. Details of the payment schedule, the completion schedule, the plan details. Normally, the profit sharing ratio is 40:60 between landowner and builder. Yet, it may vary according to location.

பொறுப்பு துறப்பு:இந்தக் கட்டுரையில் உள்ள விவரங்கள், கல்வி மற்றும் தகவல் நோக்கங்களுக்காக மட்டுமே. இது சட்ட ஆலோசனை அல்லது நிதி ஆலோசனைக்காக தரப்படவில்லை. இதில் உள்ள தகவல்களை அடிப்படையாகக் கொண்டு எந்த முடிவுகளையும் எடுப்பதற்கு முன்பு, வாசகர்கள் தங்கள் சொந்த சுதந்திரமான ஆராய்ச்சியை மேற்கொள்ளவும், நிபுணர்களுடன் கலந்தாலோசிக்கவும் அறிவுறுத்தப்படுகிறார்கள்.-Ed

Disclaimer: The information contained in this article is for educational and informational purposes only. It is not intended to be legal or financial advice. Readers are advised to do their own independent research and consult with professionals before making any decisions based on the information in this article-Edit



  1. I would like to develop my property by Joint venture 1876sqft corner land at Hindu college railway station near by land

  2. Bala murugan avatar
    Bala murugan

    I need land for joint venture in medavakkam, pinnar or sithalapakkam.. call 8489986936

  3. Durai Sayi avatar
    Durai Sayi

    I would like to develop my property by JV. 1.1 acre at Mambakkam on Medavakkam main road

    1. Give details of your property to our email

    2. Elangovan avatar

      Hi have bulider

  4. Reegan Mathew avatar
    Reegan Mathew

    Owner: Raghupati
    Place: Ambattur Estate Rd, TS Krishna Nagar, J J Nagar, Mogappair East, Chennai, Tamil Nadu 600037
    Land Area: 24 Ground
    Road size: 120 feet Road
    Ratio: 50:50
    Advance: 15 cr

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