You are not responsible for filing any application with the authorities concerned for converting the agricultural land for any other use. It is the responsibility of the buyer (promoter/developer/builder) to comply with all the incidental legal requirements. It is not advisable to accept any PDC for the transaction. Better insist on Internet transfer or demand draft.

We don’t advice you to accept any amount in cash 

Giving and taking cash is an offence under income

e tax act 

3) take 10 per ce t down payment and enter into agreement for sale 

balance amount to be paid after conversion of land into NA and at time of execution of sale deed 

1. Basically I think what the builder wants is to enter into a Joint Venture with you 

2. If the Rera certificate is obtained on the name of the seller/farmer then you would become liable as a promoter under the Rera act. 

3. The builder can obtain the NA order in the name of the seller, however at the cost of the builder and by indemnifying the seller against any liability that would arise if the NA terms are violated by the builder 

4. I would not advise to take any pdc for the black portion. There is no safety that the builder will honor the cheques when you present them to your bank for encashment. So I would suggest that you take that money by bank transfer and in your books of account show that as an advance. This way there will not be any tax liability 

5. The actual cheque or white portion must be paid on the signing of the JV itself. Not after the NA procedure or before the Rera certificate. 

6. If in lieu of money the builder is agreeing to allot you shops in the new building to be constructed on your land then you have to take a bank guarantee from him so that if he defaults then you can invoke that guarantee and cash out. The bank guarantee has to be provided within the agreed period as stated in the JV or development agreement. 

7. In the JV or DA also include the clause that builder will responsible and liable to his purchasers of shops that would go to his share and you would be indemnified against any such liability. 

8. There is no readymade or standard draft for a JV or DA. It is case specific and has to be drafted by a competent lawyer on basis of the mutual agreement arrived at between the parties. Or tell the builder to share the draft of the JV prepared by his legal team and then you can have that draft vetted by your lawyer 

There is nothing wrong in obtaining the NA conversion approval in the name of the land owner by the developer, it is part of their agreement in the joint development agreement.

Accepting the PDC is based on the reputation of the developer, you should obtain proper agreement for that in case the cheque bounces.

The builder may put several condition over the settlement of the consideration amount, you may have to deal with them with abundant caution based on the prevailing circumstances.  

You can choose a lawyer of this forum to get the papers vetted including review of the draft agreement with a lawyer of your choice on the terms of the chosen lawyer.

Dear Sir,

My answers are as follows:

1. Builder(buyer) wants to convert agriculture land to Non-agriculture on the name of farmers (Seller)

Ans: It is fine you may have to execute power of attorney which facilitate him to approach Deputy Commissioner office etc to convert it into non-agricultural land. Be sure that first it shall convert into your name then the same converted land may be sold to seller to fetch more price.

2. Builder(buyer) wants to pass Gujarat RERA certificate on the name of farmers(seller)

Ans: You may consult local lawyer on the Gujurat RERA rules.

3. If we(seller) accept the PDC cheque for the black portion & execute the sale deed. is it wise to do it? how to mitigate the risk/lower the risk & do the agreement? this is how builder do the businesses around my local area.

Ans: It will create dangerous situation if you accept PDC cheque in post of the cases they may be bounced.

4. Builder(buyer) wants give specific no. of shops to farmers(seller) on their own land(30% of agreed amount).

Ans: That is the agreement between builder and farmer and you need not worry about that arrangement.

5. Also, Builder(Buyer) asking me to receive the cheque after the NA procedure & before the RERA without giving the full black portion. if I accept the cheque in advance how to mitigate or lower the risk?

Ans: It is not advisable.

Dear Client,

It is advisable that the builder takes not more than 10% of the property's cost as advance payment by cheque. Kindly abstain from collecting cash in order to avoid any fraudulent behavior on the part of the developer.

An NA conversion approval with the developer's name as the landowner shall be considered as a part of the agreement in the joint development agreement.

Please consult a lawyer to guide you through the process.

You may book an online consultation with us for more information.

Thank you.

- If the seller  will receive the PDC cheques and execute the sale deed in his favour then legally the property will be transferred to the builder and the seller cannot get back the property and cancelled the sale deed on the ground of sale deed , except to recover the amount of the cheques after filing a case before the court. 

- Hence, you can enter into a Collaboration Agreement , as it is an arrangement between an owner of the land and a builder where the land owner contributes the land and the developer undertakes the responsibility of obtaining approvals, property development, launching and marketing the project with the help of his financial resources. 

- The ownership lies with the owner of the land, but the landowner grants the builder along with development rights, a license to enter the land for the purpose of development.

- The license/authority to enter the land is typically given by way of a Power of attorney issued in favor of the Builder, and this General power of attorney should be registered with the Registrar in order to be legally binding on both parties.

If you need any further assistance then you can approach me through kaanoon or LinkedIn.