A joint development agreement is a legal contract that allows developers and landowners to come together for the construction of new projects. In JDA, the landowner offers his land for the construction of a real estate project and the developer takes the responsibility for the development of the property, getting all the required approvals, and marketing the project.
Developer agrees to offer the following things in a Joint Development Agreement:Fixed percentage of the newly constructed project,
Lump-sum consideration, or
Percentage of sales revenue,
This depends upon the mutually agreed terms and conditions. In this way, a joint development agreement helps to pool the resources of both the landowner as well as the developer together. After providing a certain portion to the landowner, the developer sells the remaining area directly.
Advantages of entering a JDA:Competent consideration for the landowner
Rapid development of the project as working capital is mostly needed to meet the construction requirements
Partial avoidance of stamp duty
Initial investment is not needed for the procurement of land
Now you will have the answer if somebody ever asks you “what is joint development agreement?”
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What is joint development agreement?
Santosh
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4 Year
2021-08-17T16:34:39+00:00 2021-08-19T18:16:18+00:00Comment
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