Redevelopment
General
- The title of the property will always be held by the society. An undertaking will be given for acceptance of the same.
- Demolition of the old building and reconstruction of the new building will be done as per rules and sanction from MCGM / State Govt. and various authorities. The developer will bear all these expenses and the society shall not be charged for the same.
- The developer will follow all labour laws and safety provisions. He shall also take a third-party insurance policy so that the society is absolved of all responsibility.
- The redeveloped society shall have a fixed number of free sale apartments. However, these shall not be given into possession to any person / s until the existing members are given possession of their new apartments.
- The redeveloped work shall be completed within the period mentioned in the agreement.
Building & facilities
- Design of building will be according to standard specification. It will be earthquake proof, with the soil being investigated to assess the capacity and type of foundation.
- Branded fittings will be used in all new apartments.
- A corpus fund shall be provided to the existing members. This shall be calculated as carpet area occupied by the member x amount per sq. ft.as agreed upon.
- The members will have to look for transit accommodation on their own but we shall help in procuring the same. Professional movers and packers shall be employed to pack, transport and shift the goods to their accommodation and while shifting back to original building after redevelopment.
- Monthly rent shall be paid in advance through post –dated cheques or as per mutual understanding with the society.
- Adequate car parking, Society office, Security cabin, bore well, paving as chequered tiles, 5-year guaranteed water proofing of terrace.
Special Privileges to Society Members
The members can opt to purchase additional area (over and above the area of their redevelopment apartment) if they wish to. This can either be done by buying a larger apartment (e.g. buying a 2BHK apartment). Extra areas will be provided at concessional rates to the members as per mutual discussion between individual members and developers.
Ownership The title of the property will always be held by the society.
Permission and approvals The society’s redevelopment proposal is submitted to the municipal authority (MCGM). Reconstruction of the new building will be done as per rules and sanction from MCGM/State Govt. and various authorities.
Title Verification
The Lawyer appointed by the society shall provide title clearance, following which the developer’s legal team scrutinizes and approves it.
Executing The Development Agreement
The developer submits the initial draft copy of the development agreement to the society, after which the society members and developer, along with their advocates, have a meeting for initial discussion and both sides define their terms and conditions.
The developer then prepares a final copy based on terms and condition agreed mutually between society and developer. The society tables the draft in EGM and takes 100% consent of all members. Once the members approve, the developer then sends the approved copy for adjudication (Settlement) of stamp duty. After paying the stamp duty, the developer informs the members that the document have been stamped, and fixes up a time to carry out the next steps, i.e. executing the document.
Executing the Agreement at Sub Register’s Office
In an extraordinary general meeting, the Development Agreement and power of Attorney are signed by those who are authorized to execute them. Then, these documents are executed in the presence of the developer and all the society members at the Sub-Register’s office. A photograph of the authorized members is required at this time.
Submission of Plans
The developer, along with the architect, presents at least two options of new apartment plans to the members, one of which is approved in an extraordinary general meeting. Once the plans are finalized, the developer sends them with copies of the individual agreements.
Agreement With Individual Members
The developer enters into an agreement with all individual tenants in which all the typical apartment plans will be enclosed. At this point, it is advisable that the society members allot apartments before they shift to their temporary accommodation, so that same can be incorporated in the agreement.
Receipt of IOD
Simultaneously, the developer obtains an IOD. The developer intimates the members to handover possession of the premises within the time period agreed in the development agreement.
Shifting Into Temporary Accommodation
As per the agreement, the rent cheques are issued to the society members after each and every member vacates their flat, vacant and peaceful possession of the whole building is given to the developer, & then the existing members shift into their temporary accommodations.
Demolition & Reconstruction
Once the members hand over the possession of the apartments to the developer, the next step, the old building is demolished and construction of the new building starts.
Possession of New Apartments
Once the new building is complete, the members are intimated that they should take possession of their new accommodation within the time period as agreed in the development agreement.
Completion & Handover
Once all members and sale wing owners take possession, the developer hands over possession of all land building back to the society.
How Does a Society Benefit By Opting For Redevelopment
- Repairing cost of the society is saved.
- The members get additional carpet area over their existing carpet area.
- Members get hardship compensation for moving out of their premises.
- State-of-the-art-design gives the members an edge, as the resale value of their property rises.
- Adequate parking spaces, elevators and other amenities will be provided.