Even though the unregistered JDA will not affect your ability to sell your portion of the 67% built up area at a later date, but still it's advisable to register the JDA now atleast.
I own a property in Chennai and have entered into a Joint Development Agreement (JDA) with a property developer. It’s a 67:33 deal where I retain 67% of the built up area. The developer is free to sell his 33%. The JDA clearly demarcates which portion of the built up area belongs to me and which to the builder. I have given him a GPoA for development & sale of his share. The JDA has not been registered. The project is nearing completion and there’s no dispute between the seller and me. But will the fact that it’s not a registered JDA affect my ability to sell my portion of the 67% built up area at a later date.
Even though the unregistered JDA will not affect your ability to sell your portion of the 67% built up area at a later date, but still it's advisable to register the JDA now atleast.
Under section 17 of the Registration Act, 1908 documents that create or assign rights in immovable property must be registered. An unregistered JDA may not be admissible as evidence in court to prove your ownership of the specific demarcated units if a dispute arises later with the developer or future buyers.
2) you need the developer to join as a confirming party in the sale deed to acknowledge your right to that specific unit. However, without a registered JDA, the developer’s own right to have developed the property could be questioned, further complicating your sale.
The short answer is yes, the fact that the Joint Development Agreement is unregistered can create serious legal and transactional difficulties for you in the future, even if there is no dispute today.
Under Indian law, particularly after the 2001 amendment to the Registration Act and consistent Supreme Court rulings, any document that creates, declares, assigns, limits, or extinguishes any right, title, or interest in immovable property of value exceeding ₹100 must be registered. A Joint Development Agreement, by its very nature, does exactly that: it determines how the landowner’s rights are to be converted into built-up area and how the developer’s rights arise.
An unregistered JDA is not invalid as a contract between you and the developer, but it is legally weak for third-party purposes. It cannot be relied upon to prove title, allocation of built-up area, or enforceable rights against purchasers, banks, or future transferees. Courts treat an unregistered JDA as having limited evidentiary value, and it cannot be used to affect rights in immovable property.
Coming specifically to your concern about selling your 67% share in the future: a purchaser, their lawyer, and any lending bank will insist on seeing a registered JDA to establish the legal basis on which the landowner is entitled to specific flats or a defined portion of the built-up area. Without a registered JDA, you will face objections such as:
– How did the builder acquire the right to construct and sell?
– On what legal basis is your 67% carved out?
– Is the allocation enforceable against the developer and third parties?
In many cases, buyers either refuse to proceed or demand indemnities, price reductions, or corrective documents. Banks often refuse to sanction loans where the underlying development agreement is unregistered, because the title chain becomes questionable.
The General Power of Attorney you executed also does not cure this defect. A GPA only authorises acts; it does not create or transfer ownership or development rights. Moreover, an unregistered JDA combined with a GPA is precisely the kind of arrangement courts scrutinise strictly after the Suraj Lamp line of judgments.
The risk is not theoretical. Even if relations with the developer are cordial now, future events such as disputes, insolvency of the developer, death of a party, or litigation by third parties can expose the weakness of an unregistered JDA. Your ability to defend your title or allotment then becomes much harder.
The practical and legally sound solution is to regularise the position now, while there is no dispute. You and the developer should execute and register either:
– the existing JDA (with appropriate stamp duty and registration), or
– a confirmation / supplementary registered JDA ratifying the earlier agreement and clearly setting out the allocation of built-up area and rights.
Stamp duty will be payable as per Tamil Nadu rules applicable to JDAs (often on the development consideration or constructed share, depending on the structure), but this cost is far less than the loss of marketability or future litigation risk.
Once the JDA is registered, your 67% share becomes legally traceable, defensible, and readily saleable. Without registration, you may still manage to sell, but only with difficulty, delay, and compromised value.
In summary, while the unregistered JDA does not invalidate construction already done, it materially affects the marketability, bankability, and legal safety of your share. From a property law and risk-management perspective, registering the JDA before completion or before your first sale is strongly advisable.
Yes if the jda transfers rights and interest of immovable property then it’s registration is mandatory in law
Under Section 17(1)(b) of the Registration Act, 1908, a JDA must be registered if it creates or declares rights in immovable property, and involves sharing of built-up area / transfer of development rights.
An unregistered JDA cannot be relied upon to prove title or allocation of built-up area.
An unregistered JDA can create problems when you try to sell your 67% share later, even if there is no dispute today. The risk is manageable, but it should be regularised before sale.
An unregistered JDA is not compulsorily enforceable under Section 17, Registration Act, 1908, for creating rights in immovable property, but your ownership/title remains intact and unaffected.
You can sell your 67% share via registered sale deeds (with clear flat/UDS description, tracing to original title), which will convey good title to buyers.
Risks: Buyers/lenders may raise objections on allocation proof; mitigate by executing a registered allocation/supplementary deed now confirming shares.
Advise: Proceed with registration before sale to avoid disputes. Consult locally for stamp duty.
Yes it can create problems later. An unregistered JDA has weak legal value and buyers or banks may raise objections when you sell your share... It is safer to register the JDA or execute a registered confirmation deed before selling your 67 percent portion.
- As per Supreme Court , an unregistered JDAs conferring development with sale rights are invalid for creating rights in immovable property
- Further, an unregistered JDA cannot be relied upon to claim ownership, possession, or transfer rights, and this JDA can be used only for construction and not to sell the property.
- Hence, it can create problem later on at the time of selling the share.
Hi
In general, an unregistered joint development agreement is not admissible as evidence in courts of law.
Even in Sub-Registrar office at the time of registering the flats, this unregistered joint development agreement will not be accepted by SRO.
So, in order to protect the agreement entered into between you and the property developer, it is strongly advised that you register the Joint Development Agreement at SRO.
For computation of stamp duty and Registration charges, please contact the Sub-Registrar office in which your property is located.
Dear client,
It is important to note that a JDA that involves property rights must mandatorily be registered for its validity before the court. In the instant case, the JDA that stipulates the 67:33 deal will not be valid before the court of law because the same is not registered.
This non registration has far reaching implications on your ownership as well. In case of any dispute in future, it would be extremely difficult for you to prove your title over the property by reason of this non registration.
Also, the sale of the property will be extremely difficult since the JDA is not registered and will have documentation issues as well for transfer of property.
However, it is possible for delayed registration by way of condoning of the delay caused. The maximum time limit is a delay of 8 months. In the instant case, if the JDA has been executed much before 8 months then it will not be possible for registration at this point in which case it is better to re-execute a new JDA.
I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.