Recently, a developer seeking to process a sale deed at the Mylapore sub-registrar office was instructed to register a joint development agreement (JDA) first—an initiative that has not yet been implemented in the state. Developers have expressed concerns that such discrepancies are resulting in property registration delays.
The registration department is currently drafting guidelines for the JDA, which will outline the responsibilities of landowners and developers, including construction timelines. Presently, collaborations in Tamil Nadu between landowners and developers are primarily conducted via power of attorney (PoA).
However, officials from numerous sub-registrar offices have been insisting on the registration of JDAs. In light of these events, the Builders’ Association of India (BAI), Tamil Nadu Centre, has requested clarification from the Inspector General of Registration (IGR) regarding the necessity of registering JDAs between landowners and developers.
According to BAI, there is no explicit provision under the Registration Act, governmental order, IGR circular, or statutory notification that mandates the registration of such agreements or stipulates the associated stamp duty and registration fees. “Since different sub-registrar offices operate under varying practices, it leads to delays in property registrations, increased compliance costs, and uncertainty for developers, landowners, homebuyers, and lenders,” commented S. Ramprabhu, chairman of the Directorate of Town and Country Planning Committee at BAI.
The association urged the IGR to clarify the legal stance, particularly regarding applicable stamp duties and registration fees, which remain undecided. “A uniform circular should also be issued to all registration offices,” he added.
IGR Arun Sundar Thayalan was unavailable for comment.
