Joint Development (JD) has evolved as the most preferred and widely adopted property development model in urban cities. An individual land owner and a developer may enter into a Joint Development Agreement. The key feature of a JD is that the land owner will contribute land and the developer will undertake development activity on it with his expertise. Depending upon the land price, the Joint Development ratio is decided among the parties.
The land owner has the option of retaining his whole share or a part of the share or even fully sell his share directly or through the developer. In consideration for this, the land owner will part with the agreed ratio of undivided share (UDS) of land in favor of the developer or his nominee and will also allow the developer to construct and sell the share of his apartments.
The owner will permit development of the project and sale of his share of apartments. At the same time, the builder gets access to land and does not have to invest money for purchase of land. The success of any project lies in the land owner identifying the developer based on his track record.