Whom to contact for development agreement-related queries?

A development agreement, also known as a Joint Development Agreement (JDA), is a contract between a landowner and a developer. In this agreement, the landowner provides their land to the developer, who then invests in developing the land. Here are some key points related to development agreements:

1. Legal Essentials:

   • License

     : The landowner grants permission to the developer to develop the land.

   • General Power of Attorney (GPA) Agreement

     : The developer receives the authority to act on behalf of the landowner.

   • Registration

     : Registering the development agreement is advisable to make it legally enforceable.

   • Non-Objection Certificate (NOC)

     : Obtaining an NOC from the landowner is crucial.

   • No Registration, No Home Loan

     : Unregistered agreements may not be accepted by banks for home loans.

2. Types of Development Agreements:

   • Area-Sharing Development Agreement

     : The developer and landowner share the developed area based on an agreed-upon ratio.

   • Revenue-Sharing Development Agreement

     : The developer shares a portion of the revenue generated from the project with the landowner.

3. Rights and Duties of the Developer:

   • Rights

     :

     • Right to acquire the land.

     • General Power of Attorney (GPA) rights.

     • Right to develop the land.

     • Right to seek necessary approvals.

   • Duties

     :

     • Bear developmental costs.

     • Market the property.

     • Obtain required approvals.

4. Key Clauses in a Development Agreement:

   • Recitals.

   • Parties clause.

   • Property clause.

   • Scope of work clause.

   • Consideration clause.

   • Representations and warranties clause.

   • Term and termination clause.

   • Governing laws and jurisdiction clauses.

   • Dispute resolution clause.

5. Pros and Cons:

   • Pros

     :

     • Land procured at no initial cost.

     • Rapid property development.

     • Effortless revenue for the landowner.

   • Cons

     :

     • Long-term commitment and cooperation.

     • Risks associated with unregistered agreements.

     • Uncertainty in market trends.