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Though the two terminologies are often used synonymously, there is a difference between the two. While a Joint Venture (JV) is applicable to every kind of business, a Joint Development Agreement (JDA) is one which is restricted to the real estate sector.
Joint Development Agreement (JDA) It is an arrangement between the Land owner and the Builder/Developer, where the Land owner contributes his land and the Developer takes the full responsibility of obtaining approvals, construction, launching and marketing the project with the help of financial resources.
A joint development agreement is a legal contract that sets the terms between two or more parties working together to develop a new product or technology. This type of agreement addresses the joint nature of the parties' collaboration on the research and development of potentially patentable intellectual property.
The land owner may get consideration in the form of either lump sum consideration or percentage of sales revenue or certain percentage of constructed area in the project, depending upon the terms and conditions agreed upon between them.
Joint Development Agreement should be registered If the owner retains their share of built-up area, a construction agreement has to be entered into with the developer and the same has to be registered. The stamp duty and registration charges would be 2% of cost of construction.