1) is sale cum development agreement registered

2) is POA registered ?

3) get title deeds vetted by local lawyer and then only purchase flat

1) Development agreement authorises builder ti develop land owned by landowner

2) POA authorises builder to sell flat constructed by builder

3) in case builder commits breach of agreement landowner would seek to terminate agreement

and drag builder to court

Hi

A sale cum development agreement is an agreement entered in to between the Land owner and Developer wherein the Land owner instead of cash remuneration for sale of land decides to share the profits arising out of development agreement and gets additional income(land plus building).

Under the development agreement, the land owners shall execute an Registered Irrevocable Power of attorney to the builder and the Land owner cannot claim back the land / property any time in future.

Also Under section 53 A of transfer of property Act, by virtue of Registered Irrevocable Power of Attorney, the Developer has taken possession of land and had developed the land and hence his interest is protected and hence he can enter in to contracts with buyers like you under the GPA of the Land owner and hence your interests are also protected by Law.

Also given the fact that many financial institutions have approved the project, it means that the title to the property emanating from the Landowner's GPA to the builder is also clear in Law.

Hence you can go ahead with the purchase of the property and get the property registered in your name.

Hope this information is useful

1. In several instances, the land owner does not sell his land and enters in to a joint venture or joint development agreement clearly specifying the distribution of share of the flats on completion of construction.

2. If your flat falls in the area of land owned by the land lord then there should be an agreement for conducting construction thereupon and for selling flats by the land owner and also the builder which falls within each of their shares.

3. Only POA to construct is not sufficient authority to sell any flat of the building constructed on the sad land.

4. the builder's assurance and also the project approvals by few Banks are not indicators of legality of your said deal.

5. I opine against dealing with the said property in its present form.

1. The Joint venture agreement or the development agreement is an agreement detailing that the land owner will allow the construction to be conducted on his land by the builder for which the land owner will be allowed a certain number of flats after the construction is over which he can sell and the rest will be sold by the builder.

2.this should be followed by a POA in favour of the builder authorising him to construct the building and also affect the sale of his share of the flats.

3. Both the POA and the development agreement shall have to be registered to be valid legally.

1. if the builder has development agreement with the owner in respect of part 1 land and POA then there is no reason for concern to you.

2.If the land owner is not deprived by the builder in nay way then there is no reason of fear in future.

Do note that I have opined without seeing the proeprty papers.

The builder assures me that I will not face any issues in the future if I want to sell as he has taken power of attorney from land owner. Also, the project has been approved by many banks, including ICICI, Axis, PNB, and Indiabulls. I just wanted a lawyer's opinion on whether I should go ahead with the purchase or cancel.

The builder may give lot of assurances in the initial stage but he will be missing from the scene when you face problems while selling it to a third party.

The builder assures me that I will not face any issues in the future if I want to sell as he has taken power of attorney from land owner. Also, the project has been approved by many banks, including ICICI, Axis, PNB, and Indiabulls. I just wanted a lawyer's opinion on whether I should go ahead with the purchase or cancel. in the property.

The banks also may approve the loan for the present however when there is a litigation the banks will not stand by you to protect your interests in the property.

It is always better to take a legal opinion from a local lawyer by producing all the relevant papers before him and then decide about proceeding in the case.

Can you please give me some information on what a sale cum development agreement is? Also, the sale cum development agreement is registered and the title deeds are clear. I am not sure of POA registration. Can the land owner of that 1 land part cause problems in the future?

The registered power of attorney deed shall not entitle the builder to execute the sale deed on behalf of the owner/principal.

If there arises a dispute between the owner and the builder then the builder will ignore everything and he may not be available to protect yor interests in the property.