INTRICACIES AND PROSPECTS OF
JOINT VENTURE AGREEMENT
It is a contract between a landowner and a developer to undertake a real estate project
The Landowner, who has the right land but do not have the capability, in terms of expertise or enough capital to develop his land into real estate project, enters into a joint venture agreement with a Developer, who do not have the right land but has the expertise and money for the development of the land
1. Landowners
a. Individual b. Corporation
Developers
a. Land b. Housing -Residential -High-end -Commercial -Medium -Industrial -Low-cost -Sports/Leisure c. Building -Commercial -Residential
2. Landowner - Funder - Developer
-Bank -Individual -Other Corporation
3. Landowner - Developer - Contractor
1. Projected Income/Sample Computation / Feasibility Study 2. Financing/Capacity for Funding towards completion of project - In-house
- Bank - Pag-ibig/Other gov’t institution e.g. GSIS / SSS
3. Completion Date 4. Track Record – competence/expertise of developer/ company profile 5. Marketing Arrangement 6. Collection Arrangement and Remittance of owner’s share
1. Location - Title - Tax Declaration - Vicinity Map - Lot Plan 2. Demography 3. DAR Conversion 4. Environmental Compliance Certificate from DENR 5. Approved Plan from Bureau of Land 6. Development Permit 7. License to Sell
8. Title Details - Lien/Encumbrances - Restriction - Extra-judicial Partition - Mortgage - Transmission Line - Road Widening - Floodway - Coastal Road 9. Real Estate Tax Payment 10. Topography - filling needed - Soil Test/Geological Study
1. Talk to the right negotiator 2. Be ready with all the requirements 3. Site Inspection is important 4. Continuous communication until the deal is finalized
1. Be prepared with all the papers & questions to be asked 2. Be on time 3. Be honest 4. Be patient 5. Listen 6. Be ready for tripping
1. 2. 3. 4. 5.
Never talk to the wrong person Never point to a wrong property Don’t be late Don’t rush anybody Don’t lie
1. Sangguniang Resolution-Re-Classification 1.a. Certified True Copy of Title 1.b. Tax Declaration 1.c. Waiver 1.d. Brgy. Resolution 1.e. NIA 1.f. DA
1.f.1 Sworn Declaration of Application for Land Use Conversion 1.f.2. Title 1.f.3. Letter from DAR Regional Office that Certificate from Dept. of Agriculture is required 1.f.4. Location Plan and Vicinity Map
1.f.5. NIA 1.f.6. SRA 1.f.7. PCA (Philippine Coconut Authority) 1.f.8. Zoning Cert. From HLURB 1.f.9. Mayor/Brgy. Certification 1.f.10. Environmental Compliance Certification 1.f.11. Certification from Zoning Administrator that Land would have greater economic value if converted 1.f.12. Provincial NIA Certification 1.f.13. Pictures 1.f.14. Location Plan 1.f.15. Tenant’s Waivers 1.f.16. Application for Conversion
1.g. HLRB Certification 1.h. DENR - EC
1.h.1 DA Report (Please see 1.f) 1.h.2. NIA 1.h.3. Vicinity Map 1.h.4. Title 1.h.5. Tax Declaration 1.h.6. Feasibility / Project Description
1.i. Vicinity Map 2. Provincial Resolution Approving SB Resolution 3. Justification / Joint Venture 4. Capability of Developer/Track Record/Financial Statements
5. Application for Conversion 6. Special Power of Attorney 7. Waiver 8. Subdivision Plan/Concept of Development 9. MARO (Municipal Agrarian Reform Office) 10. PARO (Provincial Agrarian Reform Office) 11. RARA (Regional Agrarian Reform Office) 12. Ocular Inspection 13. CLUPI – Ocular Inspection 14. DAR - Central
1. MPDO/Zoning Certification (Municipal Planning) 2. HLRB Certification 3. HLRB Approved Land Use/Zoning 4. Location Plan 5. Certified True Copy of Title 6. Tax Declaration 7. Special Power of Attorney for Applicant 8. Tenant’s Waiver/Sinumpaang Salaysay 9. DA, when necessary
10. NIA Certification 11. Provincial NIA Certification 12. MACRO Certification – not covered by CARP/OLT 13. Pictures 14. Petition for Exemption 15. RARO – File 5 sets 16. PARO 17. MARO Indorsement 18. DAR - Central
1. Project Description for Subdivision/Environmental Impact Statement for Critical Projects 2. Title 3. Tax Declaration 4. Brgy. Certification/Endorsement 5. Mayor Certification/Endorsement 6. Development Permit 7. Social Acceptability [Brgy./Mayor/Constituents] 8. Vicinity Plan 9. Projects [Subdivision Plan, etc.] Drainage Lay-out
10. NIA 11. Provincial NIA Certification 12. Water Treatment/Garbage Disposal 13. Topographic Map 14. DA Report/DAR Conversion/Exemption 15. Zoning or SB Resolution/MPDO Certification 16. Filing Fee 17. Pictures
1. ECC 2. Title 3. Tax Declaration 4. Development Plan 5. STP or WTP
1. Slope Map 2. NAMRIA or DENR Certificate as to slope 3. NIA 4. DA (Please see 1.f of Conversion as to requirements) 5. Waivers of tenants/Affidavit of Non-Tenancy 6. Certified True Copy of Title 7. Tax Declaration 8. Vicinity Plan 9. HLURB Certification 10. Petition 11.Special Power of Attorney, when required
SAMPLE COMPUTATION FOR JOINT VENTURE
Developable Area Less: 30% Provision for Roads/Open Space Saleable Area Owner’s Share Projected Selling Price Total Contract Price Less: 20% Downpayment Multiply by 14% interest per annum Projected Monthly Income Multiply by number of months Projected Earnings from balance & interest income in 5 years Add: Projected Income based on downpayment Gross Income in 5 years Less: Marketing Fee (12% of Total Contract Price) Net Projected Income in 5 years 100,000.00 sq. m. 30,000.00 sq. m. 70,000.00 sq. m. x 40% 28,000.00 sq. m. x 3,000/sq. m. P 84,000,000.00 16,800,000.00 P 67,200,000.00 x .02327 P 1,563,744.00 x 60 P 93,824,640.00 + 16,800,000.00 P 110,624,640.00 10,080,000.00 P 100,544,640.00 =============