Joint Development

A joint development agreement (JDA) is a legally binding contract that allows landowners and developers to come together for developing the land. Currently, JDA is a widely used common form of property development in India across sectors.

Joint development agreement working process: In a Joint Development Agreement (JDA), the landowner contributes his/her land to construct the real estate project, while the developer takes responsibility for the development of the property, including obtaining approvals launching, and marketing the project.

Differences between Joint Venture and Joint Development: Though the two terms JV and JDA are often used synonymously, there is a difference between the two. While a Joint Venture (JV) applies to every kind of business, a Joint Development Agreement (JDA) is restricted to the real estate sector.

JDA is now a common feature in the Indian real estate sector, as norms and regulations governing the real estate sector have been eased. Further, the Indian Government has effected a downward revision of tax on JDA to boost rapid growth in the real estate sector and facilitate affordable housing for all sections of society. 

A JDA is a contract between the landowner and builder that describes in detail the construction process. As the name suggests, the JDA  denotes the agreement to develop and construct as per fixed guidelines and share the properties accordingly. The Joint Development Agreement stipulates the ownership rights of the property, guidelines for profit sharing, and the construction of the property. The builder then executes the construction as per the guidelines of the JDA.