JDA is a common arrangement between landowners and builders. In a JDA, the landowner transfers their development rights to the builder, who constructs a building on the land. The landowner can then choose to keep their share of flats or sell them to buyers.
Other things to consider when entering into a JDA include:
Clear communication
Both parties should communicate clearly to ensure the success of the agreement.
Taxation
The taxation of a JDA transaction is different from a capital gains transaction.
GST
The developer should show the sale of flats allotted to the landowner in their returns, but not in their profit and loss account.