Why the developer matters more than the ratio
In a joint development (JD) your land is tied up for years. If the developer stalls, you cannot sell the land, the approvals may lapse, buyers who paid the developer may claim against the project, and getting your land back can take a court case. A good share from a weak developer is worth less than a fair share from one that delivers.
So check the developer first, then negotiate. The checks below take a few weeks. They are cheaper than any dispute.
1. Finished projects, in person
Ask for a list of completed projects, with addresses. Then go and see them, without the developer.
- Is the project finished and occupied, with roads, drains, water and lights working?
- Does the building or layout match what was sold? Compare it with the brochure if you can find one.
- Talk to a few owners. Were units handed over on time? Were common areas and documents handed to the owners' association?
- For a plotted layout, were the roads and civic amenity sites handed over to the local body as the approval required?
Ongoing projects matter too. Are they moving, or has work stopped?
2. K-RERA record
Most projects above the size limits must be registered with K-RERA, the Karnataka Real Estate Regulatory Authority. Search the developer and each of its projects on the K-RERA portal.
- Are past and current projects registered, with the approvals uploaded?
- Are quarterly updates filed, and do they match what you saw on site?
- Has the completion date been extended, and how often?
- Are there complaints, and has the authority passed orders against the developer?
A few complaints in a large business can be normal. Many orders for refund or delay compensation, or projects with no updates, are a warning. Our guide to RERA for plotted layouts explains what registration covers.
3. Court cases and company records
Search for cases by the developer's name and its directors' names on the eCourts services site and in the High Court. Look for cheque bounce cases, suits by landowners, recovery suits by banks and insolvency proceedings.
If the developer is a company or LLP, check its master data on the Ministry of Corporate Affairs records: when it was formed, who the directors are, whether its filings are up to date, and whether charges (loans) are registered against it. A company formed last year for your project, with no track record of its own, needs a stronger guarantee from its parent or promoters.
4. How construction will be paid for
Ask directly: how will this project be funded? Equity from the developer, sales to buyers, a construction loan, or all three.
- Under RERA, a large part of the money collected from buyers must go into a separate account for the project and be used only for its land and construction costs. Ask how the developer runs that account.
- If the developer plans a construction loan, find out which lender, and whether it needs a mortgage of the land. Your JDA must decide whether that is allowed. See delay, default and exit clauses.
- Ask which banks lend to buyers in its projects. Banks review a project before they lend to its buyers, and their willingness is a useful outside check.
A developer that depends entirely on selling units before it can build is more likely to stall if sales are slow.
5. Earlier landowners
The most useful conversation is with a landowner who has already done a JD with this developer. Ask for two or three names and call them yourself.
- Did they get their share on time, and the units they were promised?
- Were deposits paid when due?
- Were there disputes, and how were they settled?
- Would they sign with this developer again?
If a developer will not put you in touch with any earlier landowner, ask why.
6. How it treats your papers
Watch how the developer handles the early stage. A sound developer will:
- Run a proper title check on your land and tell you what needs fixing.
- Give you its draft JDA early and accept that your lawyer will change it.
- Agree to register the JDA and a limited GPA, not ask for a broad notarised one.
- Put its offer in writing, with the working behind the share.
- Not pressure you to hand over original documents or possession before signing.
Our guide to JDA, GPA and the sale deed explains what each paper should and should not allow.
Warning signs
Any one of these is reason to slow down. Two or more is reason to walk away.
- A share far above every other offer, with no working shown.
- Pressure to sign quickly, or to sign the GPA before the JDA is final.
- A request for a notarised GPA instead of a registered one.
- No finished projects you can visit, or none in the last few years.
- Projects with work stopped, or K-RERA updates not filed.
- Reluctance to name the company that will sign, or a change of company at the last minute.
- A refusal to let your own lawyer change the draft.
- A deposit promised at signing that keeps being put off.
A quick comparison
When you have two or three offers, put them side by side.
| Check | What good looks like |
|---|---|
| Finished projects | Several, occupied, on time, with documents handed over |
| K-RERA | Every project registered, updates filed, few or no adverse orders |
| Courts | No pattern of landowner or bank cases |
| Company | Formed years ago, filings current, promoters identifiable |
| Funding | A clear plan that does not rest on early sales alone |
| Earlier landowners | Willing to speak, and would sign again |
| Offer | A share with its working shown, and a firm timeline |
Then compare the share. Our guide to what share a landowner should get shows how to test an offer, and the landowner's guide to joint development covers the full process.
A big name does not replace these checks. Large developers have stalled projects too, and the people on your project matter as much as the brand.
How we help
We run these checks for landowners: site visits, K-RERA and court searches, company records, and calls to earlier landowners. We then bring you a short list of developers and help you compare their offers. You can see our own layout in Mudigere on the projects page, and learn how we work on our joint development service. Tell us about your land.
