Joint Development Agreement

Home » Agreement Articles » Joint Development Agreement

Joint Development Agreement

A Brief Introduction About the Joint Development Agreement

A joint development agreement is an agreement, or a form of arrangement usually made between the landowner and the property developer where the land is offered by the owner and the developer develops the property with his expertise and financial stability into a fully developed estate/villa/apartment as per the owner’s requirement. Understanding of the terms and conditions is required between the owner and developer to take a stand on the terms involved, and hence, this Joint development agreement comes into the picture.

This agreement benefits both the owner of the land and the developer where the landowner need not invest in construction, and the developer need not invest in buying the land, thereby investing their capital.  The agreement favors the landowner with monetary terms from the developer on giving their land. Monetary terms are explained as the owner’s share during the sale of the project, and non-monetary terms are shared in the apartment/estate.

Who Takes the Joint Development Agreement?

The agreement is made between the owner of the land and the property / real estate developer where both are benefited equally by this.  In this agreement, the land is provided by the owner, and the legal works and capital investment is carried out by the property developer. The land is contributed by the landowner and the approvals for the buildings; development of the property, marketing techniques, and launch of the project with the capital investment is carried out by the developer. The types of joint development agreement are Area sharing and revenue sharing agreement. The development rights are provided to the developer by the landowner.

Purpose of the Joint Development Agreement

The vital purpose of the agreement is to bring a mutual understanding between the landowner and the property developer without any misunderstanding. The agreement assures the developer with the rules and regulations of the development of the building, which remains the same until the completion of the project and end of the agreement term. The terms are made very clear in the agreement between the landowner and developer until the agreement ends favoring both of them.

The rules and regulations are made by the Government and are followed during the project as instructed in the agreement. No changes whatsoever are entertained after the agreement is made between the landowner and the developer. The agreement also covers the community’s health, welfare, and safety that cannot be overlooked. The agreement benefits both the owner of the land and the property developer on mutual terms. The standards of property development are explained briefly in this agreement.

A development agreement will not be needed to be registered. As this has everything construction contracts given to a developer. Though it entices a stamp duty of 4% of the market value of the possessions. This agreement is very important as it performs the sale deed, proprietor, or the constructor. If the plot or home that is purchased falls into the share of the builder.

Contents of the Joint Development Agreement

The contents of the Joint development agreement template include the details of the landowner and their contact address for future correspondences. This is followed by the details of the developer and their contact details. The agreement between the landowner and developer is made by mentioned their names, respectively. The duration is very important in the agreement and the property’s restricted or permitted use. The property’s dimensions, such as the maximum height and size, are mentioned in the agreement. Rules for the health and safety of the community are also taken care of this agreement.

The agreement also mentions the land’s reservation for public use. A landowner thereby benefits on having a fully developed apartment/estate without investing in his land rather than just the land without any building. The insides of this joint undertaking contract would all rely on what you are demanding to do. One could decide to co-operate on a one-off basis, for a specific scheme, or for an incomplete time like one year. Otherwise, both the parties might plan to set up a distinct joint venture commercial, retained by these parties. Before anything is planned, it is vital to take lawful advice as to the finest selection.

Both the parties must be clear in regards to the type of agreement and contented that it is reasonable to the parties individually. The contribution of the developer is explained on a detailed note to avoid any legal issues later.

How to Draft the Joint Development Agreement?

The drafting of the agreement starts with the introduction of the two parties; one is the landowner and the other is a property developer. The parties’ details and whereabouts are mentioned in the joint venture agreement. The roles and responsibilities are mentioned on a detailed note in the agreement that is held between the two parties. After the introduction, the terms held between the parties are explained for a clear understanding and to avoid any misunderstanding between them.

The agreement also defines the joint ventures’ objectives between the two parties, which make them understand their limitations and expectations. A clear mention of the governance of the joint venture should be laid by the two parties in the agreement. The choice of management and the members, the location and members of the meetings are defined in the agreement. The profit/loss, liabilities are to be discussed in the agreement clearly for better understanding and to avoid any legal discrepancies.

In case of any dispute between the parties occurs, the solution for the discrepancies should be explained in the agreement for future correspondences. The procedures for termination are also available in the agreement because the term of the agreement is the keynote of the agreement.

Negotiation Strategy

The negotiation strategy to be carried out between the two parties and patience is one aspect to be taken care of. Never lose patience, and meetings should be arranged for a smooth negotiation. Conflicts might occur but always see that the problem is resolved. The two parties need to be flexible when it comes to negotiations.

Benefits & Drawbacks of the Joint Development Agreement


  1. A landowner might fail in this agreement along with a developer only to develop the land under a secured deliberation that maybe anything in kind or cash.
  2. A landowner may offer his land to a partnership firm, then the partnership firm acts as the developer and develops the land. On the conclusion of the development, profits are shared as per the agreement.
  3. A definite fraction of constructed area is set sideways for the owner
  4. There is a continuous collaboration among the builder as well as the owner.


  1. Conflicts between the two parties and may end up with cancellation of the agreement.
  2. Cancellation may result in legal issues, and hence it is difficult to cancel an agreement, and a further dispute occurs between them.
  3. In case of breach of the agreement by the landowner, the owner can revoke the GPA with full rights and in the case of breach of the agreement by the property developer; the developer can revoke a power of attorney with full rights.
  4. Both cannot be questioned in this case and can take legal actions on the opposite party based on the agreement.

What Happens Inf Case of Violation?

After a contract is signed, most of the people desirous of following through on its terms in order that they’ll like the contract. Though it’s perpetually tempting to tackle a legal matter on your own, it’s seldom knowing do thus, unless you’re simply attempting to defeat minor traffic or ticket. Once a possible breach of contract happens, you have to confirm who is accountable for the breach, if anyone, and also the quantity of damages that were incurred. So as to possess a breach of contract enforceable contract should are dead at the showtime. Even though a sound contract was broken, you even need to be ready to work out whether or not the breaching party had a sound excuse or defense to performance. If there’s no defense or excuse, you will be able to enforce the contract through varied means that. All of the parties to a sound contract should give thought, or incur some kind of obligation to the opposite.

A breach happens once one party fails to perform any promise that produces up all or a part of the contract you entered into. Reckoning on the kind of contract you have got, a breach would possibly occur once one party:

  1. Fails to accomplish on time
  2. Fails to accomplish in the method stated in the contract
  3. Fails to execute at all

Joint Development Agreements or JDAs are a collective feature in the sector of real estate. It further bounds the landowner, and the contractor in an agreement for the construction of innovative projects. It is hereby concluded that the Joint development agreement is a mutually benefited agreement taken between the two parties who can enjoy mutual rights on the sale of the property and financial stability too. Either of them is less benefitted with this agreement.

A portion of the land area can be sold by the developer in the case of this agreement terms and conditions. In conclusion, an indemnification provision of a joint venture agreement should be in place to ensure the director and its management, officers, agents, employees as well as individuals who are helping at the request of the joint venture.