When a landowner and developer collaborate on a project, a Power of Attorney (POA) sets out the developer's legal powers. Key provisions typically include:
- Handing over the property for development and improvement.
- Surveying the land, at the developer's cost.
- Merging or splitting the property, at the developer's cost.
- Building plan approval, with the landowner signing where required.
- A committed construction timeline, extendable for force majeure events.
- Compensation to the landowner as a share of built-up space.
- Refundable security deposits, returned on a defined schedule.
- Area-change settlement based on Ready Reckoner rate or mutual agreement.
- Development loans, without mortgaging the landowner's allocated space.
- Utility connections, secured and paid for by the developer.
- Final sale deed signed once the occupancy certificate is issued.
Understanding each clause helps both parties enter a JV with clear, aligned expectations.