I am unable to register a JV with a developer due to cost reasons. The land is situated in Chennai. Will an unregistered JV on stamp paper suffice legally? Are there any low cost alternatives?
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It is always advisable to register development agreement to avoid legal complications in future
2) if development agreement is un registered builder can object to admissibility of agreement on grounds that agreement is un registered
3) no low cost alternatives are available
It is not mandatory to register the joint venture agreement or the JDA between the landlord and the developer.
However in case of a dispute in future, then the court may not entertain the unregistered agreement if either of the party is trying toi enforce the conditions therein under specific relief act.
In any case the power of attorney deed which is a result of this JV needs to be executed by a registered document or else none of the transactions pertaining to the property mentioned therein can be made.
There is no provision for short cut in this regard so that you can adopt a low cost alternative.
Unless the JV contemplates transfer of immovable property from one party to another, is does not require registration under Registration Act. A notarized JV is as valid as registered.
In case of any dispute at a later date, a registered JV agreement will come to your rescue. You have to weigh the short term 'savings' of the registration costs against the probable legal risks and costs that may arise tomorrow on account of any breach of contract.
Yes, you can go for POA, MoU and get benefits after construction on paper as per now.
It's better you execute a registered one
Dear client
No, an unregistered Joint Venture (JV) agreement on stamp paper is not legally recognized and enforceable in India. A JV agreement needs to be registered under the Indian Registration Act, 1908, to be considered legally valid and enforceable in a court of law.
For a low-cost alternative, you may consider drafting a simple and basic JV agreement on plain paper, including all the essential terms and conditions, and then getting it notarized. This notarized agreement will serve as evidence of the JV, although it will not have the same legal standing as a registered agreement.
It's advisable to seek legal assistance from a qualified lawyer to draft a proper JV agreement that protects your interests and complies with relevant laws and regulations.
