The option of joint development saves on all these requirements for both the parties. The practice is being followed both by small and large builders without exception over the past many years. The builder and the owner of the site develop the property on a joint venture basis. The land owner enters into a joint development agreement with a builder. The land is provided by the owner. The builder constructs the residential or the commercial project as per the agreement terms.
This way, it suits the needs of both the parties. The owner of the site does not have to get into the trouble of constructing the property, nor has he to arrange for funds for construction. At the same time, the builder gets access to land and does not have to raise money for the purchase of land. The builder need not block his funds and in fact can use his resources for a number of projects simultaneously.
A certain percentage of the area is earmarked for the owner of the site. The owner is entitled to dispose of the constructed property delivered to him under the joint development agreement. The owner may also decide to retain his share of the built-up area, or may sell it off at a later stage without any involvement of the builder. The other built-up area is sold by the builder directly.