Devloper aggrement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2012 I heard about developer agreement in construction business where owner of the land give right to another person to develop residential or commercial or any other buildings on his land

can anyone tell me in details about such business
or give me link where i can get full idea of such agreements ......

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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03 December 2012 Mr Author,
If owner of land has not sold his property to a builder and instead enters into an agreement then it becomes joint development project. Here, the builder agrees to build some building on the land,as rules/finance permit,and hand over a part of such completed building to the owner of land as compensation towards the cost of the land.The builder also becomes a contractor to the land owner and has to pay WCT/ST tax to the govt on such exchanged construction.The owner of land,who has received some flats in lieu of his land cost can sell them as immovable property without any tax burden.Unlike a builder,the owner of land can not collect any tax from the buyers of flats from him...MJK

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Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2012 thanks a lot
but i have few queries.......

1.If both the parties agree then can the owner of land keep his share in profit ?

2. what is the security for contractor
i mean what will happen in case of breach of agreement is there any provision for security of amount invested by contractor for the construction ?

3.is there any separate law for such agreement ?

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MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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05 December 2012 Mr Author, There need not be a seperate law for it. Such things are arranged by mutual agreement only. Both share the built up property as per the cost of their investments. If any one violates the terms of contract,well, courts are there to file litigations and seek remedy.....MJK