Basic concepts of property re-development in MumbaiPosted: May 24, 2012
Basic concepts of property re-development in Mumbai
By Gaurang Damani (September 2010)
Many buildings are so old and un-repairable, that the only solution is to reconstruct them. If you wish to make re-development profitable for everybody, knowledge of the rules is important.
Landlord or Society can re-develop the property themselves, but as it is complicated, most generally appoint a developer. The occupants must take care of the following factors, while signing the agreement (no interim document must be signed):
- Precise details on carpet area (because developer may mention super built up area, including flower bed, niche area etc., rather than carpet area.)
- Temporary accommodation details (including who will pay for flat deposit)
Stringent penalty clauses for delayed delivery
- Provision for corpus fund – this can take care of maintenance and the increased property tax after re-development and re-assessment. Corpus fund must be deposited when property is vacated, so its interest can start immediately.
- Payment of higher tariff electricity bill/ water charges during part OC
Amenities clearly specified, like parking; Mahanagar gas connection; pest control during construction; branded electrical, kitchen, furniture and plumbing fittings; window grills; type of paint/ tiles etc. to be used.
- Other amenities can be asked for, like stand-by generator; solar water heater; separate water lines for flushing and kitchen; Rain water harvesting etc. We recently got access to the best ceramic heater equipment, simply request it and it will be our pleasure to accommodate your needs.
- Forming resident’s society within specified period of 12 months or as agreed in the agreement terms
- Arbitration details, in case of a dispute.
- Sharing of gains due to extra FSI, if policy changes
- Construction quality. Hence constant watch on quality of construction must be done. If there is any discrepancy, MHADA must be notified immediately.
- Helpline number, once property is handed over to the society.
- Checking of agreement by occupant’s advocate, because once signed, there is nothing in the occupant’s hands.
Occupants must also obtain the following documents from the developer:
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