Collaboration
Collaboration
Collaboration or sale-purchase of floors/plots refers to transactions in real estate where an individual or entity collaborates with a builder or developer to construct buildings on a plot of land or directly purchases floors or plots for investment or personal use.
Collaboration
In a collaboration agreement, the landowner partners with a builder or developer to develop the land into residential or commercial properties. Here’s how it typically works:
- Agreement: The landowner and the developer enter into a legal agreement outlining the terms of collaboration, including the profit-sharing ratio, construction timelines, and responsibilities of each party.
- Development: The developer undertakes the construction, bearing the costs and managing the project.
- Profit Sharing: Upon completion, the developed property is divided between the landowner and the developer as per the agreed ratio. For instance, the landowner may get specific floors or a certain percentage of the total built-up area.
Benefits:
- For Landowners: They can maximize the value of their land without incurring construction costs.
- For Developers: They get access to prime land without the initial cost of purchasing it.
Sale-Purchase of Floors/Plots
This involves the direct buying or selling of floors or plots of land. It can be for various purposes, including residential, commercial, or investment.
- Identification: The buyer identifies a suitable plot or floor based on their requirements and budget.
- Negotiation: The price and terms of sale are negotiated between the buyer and the seller.
- Due Diligence: Legal and technical due diligence is conducted to ensure clear title and compliance with regulations.
- Agreement: A sale agreement is drafted, outlining the terms, payment schedules, and responsibilities of both parties.
- Registration: The transaction is completed with the registration of the property in the buyer’s name.
Benefits:
- For Buyers: They acquire property that can appreciate in value or be developed further.
- For Sellers: They can liquidate assets to gain immediate funds.