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When a landowner and a developer decide to collaborate on a property project, it's crucial to establish clear legal boundaries and responsibilities. These are often outlined in a Power of Attorney (POA) document, which grants the developer specific legal powers to manage and develop the property. Below is a straightforward guide to the key powers typically granted and their importance:

1. Handing Over Property for Development

• Purpose: The landowner authorizes the developer to take control of the property for the purpose of development.
• Scope: The developer gains the right to carry out all necessary work on the land, including managing and improving the property as required.

2. Surveying the Property

• Authority: The developer is empowered to request a land survey from the Land Records Office.
• Costs: The developer covers the costs associated with the survey and handles the necessary paperwork.
• Disputes: Any disputes arising from the survey are the landowner's responsibility to resolve, including the associated costs.

3. Merging or Splitting the Property

• Action: The developer can apply to the relevant government offices to merge the property with another plot or to split it into smaller sections for development.
• Financial Responsibility: All costs involved in this process are covered by the developer.

4. Preparing and Submitting Building Plans

• Process: The developer can level the land, hire necessary experts, and appoint an architect to draft building plans.
• Approval: These plans are submitted to the Municipal Council for approval. The landowner must sign the documents when required, without objections.
• Expenses: The developer bears all the costs related to this process.

5. Construction Timeline

• Timeline: The developer commits to completing the construction within a specified period from the date the building plans are approved.
• Legal Issues: The landowner is responsible for resolving any legal disputes that may arise.
• Force Majeure: In cases of natural disasters, wars, or pandemics, the timeline may be extended through mutual agreement.

6. Compensation to the Landowner

• Entitlement: The developer agrees to allocate a portion of the built-up space to the landowner.
• Enhancements: The developer may use Transferable Development Rights (TDR), premium Floor Space Index (FSI), and other tools to maximize the constructed area.

7. Refundable Security Amount

• Agreement: If the developer provides a refundable security deposit, the landowner must return it within a specified time after the building plans are approved or as per mutual agreement.

8. Adjustments for Area Changes

• Settlement: If the final construction results in more or less space than agreed, the landowner or developer must settle the difference based on the government's Ready Reckoner rate or as per mutual understanding.

9. Loans for Development

• Financial Leverage: The developer can secure loans or mortgages for the project, with the landowner's consent, provided that the landowner's allocated space is not mortgaged.
• Repayment: The developer is solely responsible for repaying these loans, without implicating the landowner.

10. Use of Adjacent Property

• Access: The developer is allowed to use any neighbouring land owned by the landowner for access or other necessary development activities.

11. Utility Connections

• Responsibility: The developer will apply for and secure water and electricity connections, covering all related expenses.

12. Final Sale Deed

• Finalization: Once the construction is complete and an occupancy certificate is issued, the landowner must sign a sale deed for their allocated space within a specified timeframe.
• Costs: The landowner is responsible for paying the registration fees, taxes, and other related expenses.

13. General Authority

• Comprehensive Power: The landowner grants the developer full authority to carry out all tasks related to the development as outlined in the joint venture agreement.

14. Legal Actions

• Binding Nature: Any legal actions or documents executed by the developer under this PoA will be considered as if the landowner had performed them. The landowner agrees to be fully bound by these actions.

15. Court Matters

• Legal Representation: If necessary, the developer can handle court matters, including filing lawsuits, signing documents, and appointing lawyers on behalf of the landowner.

This guide simplifies the key powers typically granted through a Power of Attorney in a property development agreement. It ensures both the landowner and developer have a clear understanding of their responsibilities and the scope of authority involved.

Nishka Group