Joint Venture Agreement Between Landowner And Developer

The term “joint venture” is described as “the activities of two or more individuals or companies working together.” Often, a person may own some land, but may not have the means to use it fully. Similarly, a resourceful owner/developer may need a little land to exploit his resource cost-effectively. Vertical development of land with a number of dwellings requires a lot of money, manpower and expertise that an individual cannot possess. In addition, unlike the construction of an independent house, collective accommodation or the construction of housing are more complicated. It requires the approval of various authorities, such as water supply, sanitary service, power centre, airport authorities, pollution control authority, survey service, telephone service, etc. The project to build public housing must also be subject to a much stricter compliance with the procedure for applying for credit for projects with the banks. Each joint venture agreement is a bespoke document that reflects the agreement of the parties and no document is the same. This means that there is no joint enterprise contract. The JDA, even registered with the Lower Office, should not be confused as transport or deed of sale of a dwelling for the benefit of the owner of the land. Recently, one of my clients purchased land from landowners, based solely on the basis of the JDA registered between the owner and the landowner. The buyer was consulted on the fact that JDA is an act of transportation in favour of the landowner.

After 3 months, they inquire about the fact that the same property is sold by the owner to another buyer. The reason was that the owner entrusted the owner with the marketing rights to her apartment. In another case, one of the clients paid symbolic money, but after that, he explored that none of the banks offered loans for the project in question. The reason is a mistake in the Common Development Treaty. Although it was recorded, only the number of apartments was mentioned. It is imperative to mention non-housing, otherwise there may be a dispute in the future over certain dwellings allocated to landowners under the Joint Development Agreement. In terms of the financing and the resources needed to develop the joint venture, it depends on the nature of the work. The degree of complexity, value and timing determines the type of arrangement to be made. For example, if you are doing short-term remediation work, without major structural changes, a joint venture development contract may contain a short-term bridge loan that will be repaid through the return on investment after the completion of the work and the sale of the property.

Bridge loans are possible to cover the total cost of development, but this is unusual and they are more likely to be used for the difference between purchase and rehabilitation.

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