Concept
It is a partnership between the landowner and the developer wherein the former contributes his rawland while the latter undertakes and finances all the costs to convert the land into a finished homesite.
On the part of the landowner, joint venture is resorted to when he does not have the funds or cannot secure financing for the development of the project. On the part of the developer, joint venture is an option to avoid the cost of site acquisition.
Obligations Of Landowner
Make available the title, tax declaration, and other documents to enable the developer to prepare the plans, procure government approvals, and implement the development.
Not to sell, encumber, or otherwise dispose of the land without the knowledge and consent of the developer.
Assign to the developer the lots/units pertaining to the latter, in case sharing is by allocation of lots/units.
Undertakings Of Developer (At His Expense)
Feasibility study
Preparation of plans
Relocation, topographic and subdivision surveys
Procurement of government approvals.
Completion of development, utilities and amenities
Maintenance and upkeep of project facilities prior to turn-over
Progress report to landowner
Marketing and collection
Remittance of owner's share, if sharing is from sales proceeds


Sharing Schemes
The percentage of sharing between the landowner and the developer depends on the value of the rawland and the cost to make it a completed project. For example, if rawland value and project cost are the same, the sharing is generally on a 50-50 basis.
Implementation of the sharing percentage may either be pro-ration of the sales proceeds or allocation of developed lots or units.
Safety Nets For Developer
Title verification
Sound feasibility study
Annotation of joint venture on land title
Phasing of development of big hectarages
Safeguards For Landowner
Verification of developer's capability and credibility:
Audited financial statement
SEC registration
Past and on-going