Real estate joint venture query
Rooplai
(Querist) 19 January 2019
This query is : Resolved
Me & my husband owns 400 meter (plot price is Approx.50 lakh in 2019) residential plot in Raigad district.Our family friend Mr.Ranjit is civil contractor & has dream to become builder. Now we want to develop the building project having sale value as Rs.2 crore with help of Mr.Ranjit (50% - 50% joint venture) .But none of us have much money to execute registered development agreement (stamp duty etc. will cost 5 lakh) with Mr.Ranjait.Mr. Ranjit will bear cost of Commencement certificate , GST & RERA Registration , Advertising etc.and also he will sale the entire project with we as confirming party.
Now My question is
1) How can we legally give power to Mr.Ranjit to construct & sale the project with less money spent?
2) If we form Partnership firm etc. then how we establish connection between partnership firm & our land?? Also If we transfer our plot to Partnership firm then we will affect by 30 % income tax (short term capital gain)
3) If we taken all the approvals etc. on our joint names then do we need to take 2 GST Nos.?? Also How can we give rights to Mr. Ranjit to construct & sale the project??
4) How can we proffesionaly handle the project from planing stage till completion stage
Please help us ?
Regards
Roopali
kavksatyanarayana
(Expert) 19 January 2019
As per your query your family friend is not having site. Only you and your husband having vacant site, then it is better to give General Power of Attorney cum Develop Agreement to your family friend (Mr. Ranjit) to develop, to get layout approval from the concerned and all other necessary formalities with his own fund. For that purpose you agree to give him 40% to 50% (it is for example., you may decided on oral nmutual agreement) share as builder's share and the remaining as your share(owner's share). For preparation of draft deed of Develop Agreement cum GPA, consult an experienced Document Writer/Lawyer/CA.
Dr J C Vashista
(Expert) 20 January 2019
Very well analysed, opined and obliged by expert Mr. Kavksatyanrayana, I fully agree and appreciate his acumen and advise.
Execute a power of attorney (may be special or general) authorising your family friend Mr. Ranjit specifying all the terms and conditions. Get is drafted and registered through a local prudent lawyer.
