Things to Keep in Mind Before Joining Hands with Another Developer
Feb 06, 2018 Home Trading Steps
More and more developers are joining hands to provide world class living to the investors. One can’t be too careful but there is something one can keep in mind before entering into such agreements.
We list them for you here:
1.Register JDA:
Any legal paper with clause, terms and conditions are written, is only valid if it is registered at the registrar’s office. Generally, the developers get it stamped or notarised, but that’s not the way to get it done. Registering the project not only helps the developer and landowner but also the potential buyer.
2. Note the supplementary development agreement:
Not only has the JDA, the supplementary development agreement needed to be registered too. The SDA is different from the JDA and this is in no way wrong. Though, it will not hold any value unless it has been registered at the registrar’s office.
3.Transferring the rights to the family:
The landowner can transfer the rights to the family member through the General power of attorney (GPA). In this case, the family member can ask the homebuyer to transfer the fund to him directly.
Home buyers should make sure that they are dealing with the landowner whose name is mentioned in the JDA. Such cases are more prone to benami transaction. It becomes the homebuyer’s duty to go through the JDA and GPA to understand it thoroughly.
4.It isn’t the title transfer:
So not mistake the registration of JDA as conveyance deed or sales deed in favour of the landowner. If a buyer buys from the landowner on the basis of registered JDA then they might fall into the trouble as the developer holds to right to sell it to anyone and the advertisement of the project.
If as a landowner you wish to sell, then you must own a builder no objection certificate for the same. As a homebuyer one should make sure that the landowner holds the certificate before making the purchase.
5. No home loan without registration:
The reputed banks in the country will not give out the loan to the project which isn’t registered. The builder may direct you towards the non-banking home loan companies. They may be the right way or may not be.
Kindly note that defects in JDA, fraud by landowners, unsanctioned loans may falter your chances of a homebuyer buying a home.
We list them for you here:
1.Register JDA:
Any legal paper with clause, terms and conditions are written, is only valid if it is registered at the registrar’s office. Generally, the developers get it stamped or notarised, but that’s not the way to get it done. Registering the project not only helps the developer and landowner but also the potential buyer.
2. Note the supplementary development agreement:
Not only has the JDA, the supplementary development agreement needed to be registered too. The SDA is different from the JDA and this is in no way wrong. Though, it will not hold any value unless it has been registered at the registrar’s office.
3.Transferring the rights to the family:
The landowner can transfer the rights to the family member through the General power of attorney (GPA). In this case, the family member can ask the homebuyer to transfer the fund to him directly.
Home buyers should make sure that they are dealing with the landowner whose name is mentioned in the JDA. Such cases are more prone to benami transaction. It becomes the homebuyer’s duty to go through the JDA and GPA to understand it thoroughly.
4.It isn’t the title transfer:
So not mistake the registration of JDA as conveyance deed or sales deed in favour of the landowner. If a buyer buys from the landowner on the basis of registered JDA then they might fall into the trouble as the developer holds to right to sell it to anyone and the advertisement of the project.
If as a landowner you wish to sell, then you must own a builder no objection certificate for the same. As a homebuyer one should make sure that the landowner holds the certificate before making the purchase.
5. No home loan without registration:
The reputed banks in the country will not give out the loan to the project which isn’t registered. The builder may direct you towards the non-banking home loan companies. They may be the right way or may not be.
Kindly note that defects in JDA, fraud by landowners, unsanctioned loans may falter your chances of a homebuyer buying a home.
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