What joint development means

In a joint development, you keep your land and a developer builds on it. The developer pays for the design, approvals, construction and sales. In return you receive an agreed share: either a share of the homes or plots built, or a share of the sale money. You do not need to sell your land or put in money of your own.

The usual ways to share

• Area sharing. You receive an agreed share of the finished homes or plots, which you can keep, rent out or sell.
• Revenue sharing. You receive an agreed share of the money collected from buyers, sometimes with a minimum guaranteed amount.
• An advance or deposit. Either arrangement can include a refundable deposit or a non-refundable advance paid when the agreement is signed.
• Outright sale. If you prefer, the developer buys the land outright.

How big your share is depends on the location, the road in front of the land, what can be built there, and how much the homes will sell for. Shares in Hyderabad vary widely from one area to the next, so compare offers for land like yours, close to yours.

Documents to get ready

• The title deeds that show how the land came to you, going back as far as possible, with the mother deed.
• An encumbrance certificate showing there is no loan or charge on the land.
• Revenue records (pahani, 1-B and the Bhu Bharati record) that match the survey numbers and extent on the deeds.
• Legal heir papers if the land was inherited, with every heir identified and agreeing.
• A recent survey sketch, and receipts for taxes and dues.

The agreement

• The joint development agreement and the power of attorney given to the developer should both be registered, not only signed or notarised.
• The agreement should say exactly what your share is (which units, or what percentage of collections), how area is measured, when the project will be finished, what happens if it is late, and how either side can exit if the other defaults.
• The project must be registered with Telangana RERA before any home is advertised or booked.
• Have the agreement checked by your own lawyer.

Taxes, in outline

Tax on a joint development is not simple, so speak to your chartered accountant before you sign. In outline: for individuals and families holding the land as an investment, income-tax law can let the capital gain on your share be taxed when the completion certificate is issued rather than when you sign, provided the agreement is registered. The developer deducts tax at source on any money paid to you. GST may also apply. Plan for all of this with your CA.

Choosing a developer

A larger share means nothing if the project is never finished. Look at what the developer has completed and handed over, visit those communities, and talk to the people who live there.

Working with us

We have worked with landowners since 2006. After you write to us, our land team calls you, visits the land and checks the title, then sends you a written proposal. Nothing is binding until the agreement is registered.

General information only, not legal or tax advice.

1. Shortlist and check the project

• RERA. A project with more than eight units must be registered with Telangana RERA before it is advertised for sale or takes bookings. Search its name on the Telangana RERA website and read the registration: the approved plan, the completion date and the project bank account.
• Approvals. Ask for the HMDA layout approval and building permission numbers.
• The developer. Visit communities the developer has already completed and talk to the people who live there.

2. Visit and choose your villa

Visit the site, see the plans with the sales team, and compare the facing, plot size and built-up area of the villas available. Ask for a written cost sheet showing the price, taxes and every other charge.

3. What it costs beyond the price

• Stamp duty, transfer duty and registration. In Telangana these come to about 6% of the price or the government guidance value, whichever is higher. Check the current rates on the Telangana Registration and Stamps Department website before you register.
• GST. Homes bought while under construction carry GST: 5% for most homes and 1% for homes that qualify as affordable, worked out on the value after a deduction for the land. Completed homes with a completion certificate carry no GST.
• Other charges. Ask what is included: the club house, car parking, power and water connections, legal fees and maintenance deposits.

4. Home loan

Banks lend up to a set share of the home’s value, released in stages as construction progresses. Check with your bank that the project is approved by it. We work with ICICI Bank, HDFC Bank, Bank of India, Axis Bank and Canara Bank, and can help you apply.

5. Booking, agreement and payments

• You pay a booking amount and receive a receipt.
• The agreement for sale is signed and registered. Under RERA rules, a developer may not take more than 10% of the price before this agreement is registered.
• You then pay in stages linked to construction, as set out in the agreement.
• TDS. If the price is ₹50 lakh or more, the buyer deducts 1% income-tax at source from each payment and deposits it, then gives the developer the certificate.

6. Registration and handover

When the villa is complete, the sale deed is registered in your name, you pay the stamp duty and registration charges, and you receive the keys. Keep the completion certificate, the registered deed and the defect liability terms safely.

Our villas

Our completed community SRK Green Park at Bowrampet has 210 independent duplex villas, handed over in 2018. To hear about our future communities, call us or chat with us on WhatsApp from this site.

General information only, not legal or tax advice. Rates and rules change; check the current position before you decide.