Pay Heed To Details In Development Agreement
By Gajanan Khergamker
A cooperative housing society should enter into an agreement with the developer, as finalised, but only in accordance with terms and conditions as approved by General Body Meeting. Also, the society has to act under the guidance of the architect/project management consultant and consider the points suggested by the architect/ project management consultant as appointed by the society. Here go a few issues that any party entering into a redevelopment agreement with a developer should ensure are covered:
• For one, it’s imperative that the period for completing the redevelopment project of the society does not exceed two years. In exceptional cases, it should not exceed three years.
• The carpet area to be allotted to members must be clearly mentioned in the agreement.
• The developer should give a bank guarantee for an amount equal to a fifth - 20 per cent - of the project cost.
• More importantly, during the period of redevelopment, the developer will make available said members alternative accommodation in the same area as far as possible; arrange to pay monthly rent and deposit as acceptable to members or make available transit camp accommodation.
• The said agreement will be registered under the Registration Act, 1908.
• Once the redeveloped project is complete, new members will need prior approval of the society’s General Body Meeting before admission.
• It should be clearly stated that only after all legal approvals are received for the redevelopment of the building will members vacate their premises.
• Rights of those in possession of the flats will remain unaffected.
• Should any dispute arise during the process of redevelopment, provision should be made in the agreement to resolve the same.
• Care should be taken to ensure that no committee member of office-bearer of the society is the developer or related to the developer. This should ensure that there is no conflict of interest.
• Building plans sanctioned by the Municipal Corporation/ competent authority should be placed before the General Body Meeting for information.
If any member wants copies of the approved documents, he should submit an application for the same to the society and it will be binding on the committee to furnish the information by charging the necessary fee.
• After receipt of Occupation Certificate, flats in the redeveloped building should be allotted as per present conditions floor-wise. If necessary to allot flats by drawing lots, on completion of construction the developer should make arrangements for drawing lots. At that time, flats should be allotted in the presence of Registrar’s representative and this process should be videotaped too.
A cooperative housing society should enter into an agreement with the developer, as finalised, but only in accordance with terms and conditions as approved by General Body Meeting. Also, the society has to act under the guidance of the architect/project management consultant and consider the points suggested by the architect/ project management consultant as appointed by the society. Here go a few issues that any party entering into a redevelopment agreement with a developer should ensure are covered:
• For one, it’s imperative that the period for completing the redevelopment project of the society does not exceed two years. In exceptional cases, it should not exceed three years.
• The carpet area to be allotted to members must be clearly mentioned in the agreement.
• The developer should give a bank guarantee for an amount equal to a fifth - 20 per cent - of the project cost.
• More importantly, during the period of redevelopment, the developer will make available said members alternative accommodation in the same area as far as possible; arrange to pay monthly rent and deposit as acceptable to members or make available transit camp accommodation.
• The said agreement will be registered under the Registration Act, 1908.
• Once the redeveloped project is complete, new members will need prior approval of the society’s General Body Meeting before admission.
• It should be clearly stated that only after all legal approvals are received for the redevelopment of the building will members vacate their premises.
• Rights of those in possession of the flats will remain unaffected.
• Should any dispute arise during the process of redevelopment, provision should be made in the agreement to resolve the same.
• Care should be taken to ensure that no committee member of office-bearer of the society is the developer or related to the developer. This should ensure that there is no conflict of interest.
• Building plans sanctioned by the Municipal Corporation/ competent authority should be placed before the General Body Meeting for information.
If any member wants copies of the approved documents, he should submit an application for the same to the society and it will be binding on the committee to furnish the information by charging the necessary fee.
• After receipt of Occupation Certificate, flats in the redeveloped building should be allotted as per present conditions floor-wise. If necessary to allot flats by drawing lots, on completion of construction the developer should make arrangements for drawing lots. At that time, flats should be allotted in the presence of Registrar’s representative and this process should be videotaped too.
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