1. Does GPA has to be mentioned as irrevocable in JDA cum GPA agreements? 2. What kind of important wording in JDA cum GPA protects the interests of the landowner (and cancel the agreement if required) so that the builder does not delay the construction indefinitely and does not use the JDA cum GPA to his own advantage? 3. Are there any important exclusion of GPA powers (given to the builder) to be mentioned explicitly in JDA cum GPA to avoid misuse of GPA powers and protect landowners’ interests (like not selling the land or transferring the development to some other builder etc.)? 4. Is there specific wording that can be used in JDA to bind the builder to finish landowners’ share of flats (final finishing like tiles, painting, fixtures etc.) at the same pace as Builder’s share of flats 5. What kind of wording can be added in the JDA to protect landowner from builder's construction activity related accidental risks or plan deviation related risks?
Irrevocable gives wide powers to GPA holder, it should be revocable. Time should be the essence of agreement, agreement will expire if construction not completed by this date and extension by mutual consent by duly compensate land owner for delay.
Authority to execute sale deed vis GPA will effective only after delivering land owner`s share of flat.
Accidental risk shall be borne by builder. Insurance of workmens, proper safety arrangements etc.
1) builder would insist that GPA be irrevocable as he is investing funds in project
2) there should be clause in contract that construction would be completed within stipulated period of 3 years and in event of failure to do so shall be liable to pay liquidated damages mentioned in contract
3) you can terminate the development agreement in case of breach of contract
4) insist on bank guarantee from builder to protect your interests
1. GPA (POA) for Redevelopment Agreement will NOT lapse, since it is an on-going project and money has been invested by Builder, hence it becomes automatically irrevocable.
2. GPA is a separate document which only gives authority to represent the Landlord /Society before the various related authorities for representing and taking permissions etc....
3. JDA is the most sensitive document and should be prepared only by a very experienced property lawyer with strategic clauses like:
a) Restrictions on Time Line for the project
b) Penalty /Compensation for delay
c) Revoking of JDA, after so & so many years, without compensations /damages etc.... to the builder
d) Bank Guarantee for the project & revoke clauses
e) Not to sub-contract the JDA to third party
f) First possession to Landlord /Society, even before free sale Flats etc....
1. Naturally irrevocable GPA will be asked by the developer otherwise he will not be agreeable to take up the construction for the fear that the said revocable GPA can be withdrawn leaving him in to the commercial lurch.
2. The GPA and JDA shall have to be carefully drafted mentioning time bound activities on the part of the developer. Consult your local lawyer for the said purpose..
3. The GPA & JDA shall have to be accepted by the land owner and also the developer. It can not be an one sided document. Time, payment, authority to register the constructed flats, allocation of flats etc. shall have to the essence of the said JDA & POA.
4. Yes, it can be condition. Moreover, you can make a condition that no flat will be sold with out the signature of the landlord as consenting party.
5. You can put all the conditions that come to your mind in the said JDA but the developer shall have to accept it. Consult with him in advance.
The joint development agreement is to be made based on the agreement between both the parties you need to find out and advocate and narrate down the agreement between both the parties so that it can be dotted properly and after that both the parties may be agree to all the conditions laid down in the joint development agreement including the rights and obligations dedicate can help you to decide the rights and liabilities to protect the rights of each other in the joint development agreement so that after the development both the parties should be satisfied by the rights and applications of them
1. Yes it can be mentioned in the JDA cum GPA.
2. Time of completion and clause of cancellation and revocation of GPA should mentioned in case of non adherence of the terms.
3. Yes right given should be non transferrable also share of flats should be demarcated.
4. He has to complete the construction you can engage service of lawyer to draft same for you.
5. Indemnity from builder can be taken.
1. Yes it should be mentioned in GPA agreement.
2. Landowner should insist on making the agreement time bound or penalize the builder for delay.
3. Which even clause you want to add to protect landowner from on site accidents and shares of flats you should add specific clauses as per negotiations with builder.
it can be mentioned in the JDA cum GPA.
The registration of a JDA does not mean it is a conveyance deed or a sale deed in favour of a landowner. If a buyer buys from a landowner on the basis of a registered JDA, he might fall into trouble given that the marketing rights of the flat are with the builder and he has the power to sell it anyone which the buyer from the landowner may not even realise.
If as the landowner you wish to sell, you would have to keep the Builder No-Objection-Certificate ready or be ready for a tri-partite agreement between the landowner, developer and the buyer. If the developer does not comply, buyers should keep away from the purchase.
. Whether the word irrevocable mentioned or not, the very nature deems it to be irrevocable.
In the present scenario, where independent homes and villas are giving way for high rises, the developers and landowners are frequently joining hands for the construction of realty projects. However, while entering into a Joint Development Agreement, you should take note of the following considerations:
Entering into a Joint Development Agreement not only saves the owner from the hassles of constructing a property but also helps the developer save money on the purchase of land, which is usually a substantial part of the project cost. However, while buying a property built on the basis of such an agreement, it is always advisable for a buyer to keep an eye on the defects, if any, in the JDA; fraud by the landowners, and chances of unsanctioned loans in future.
You may consult an advocate in the local and get a format drafted and vetted by the said advocate before entering into the agreement with the builder.
