What is a joint development agreement (JDA)?

A Joint Development Agreement (JDA) is a specific type of development agreement where a landowner and a developer formally partner to jointly develop real estate on the landowner's land with the developer contributing construction expertise, capital, and project management, while the landowner contributes the land. The output (constructed units) is shared between both parties.

Key Features of a JDA

  • Landowner does not sell the land they partner for development.
  • Developer gets development rights (not ownership) of the land.
  • Output shared as per agreed area or revenue split.
  • Typically registered as a development agreement stamp duty on defined consideration.

Two Models of JDA

  • Area Share JDA: Landowner gets a fixed number or percentage of constructed units.
  • Revenue Share JDA: Landowner gets a percentage of total sale revenue generated by the project.

JDAs are one of India's most common real estate development structures, particularly in land-rich southern cities where landowners have historically preferred to develop rather than sell. Both parties must ensure the agreement is precisely drafted on area/revenue share, cost allocation, RERA obligations, and exit rights.

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