By ADV. Vinod Sampat
1.To ensure that the Developer has completed a few TDR Redevelopment projects earlier.
2.TDR must be purchased in societies name.
3.The solvency of the builder should be checked by asking for a solvency certificate. Wealth tax /Income Tax returns for the last three years should be called for.
4.The plan of the proposed extension should be finalized by the Developer’s Architect in consultation with Society Architect.
5.Development Agreement should be registered.
6.Clauses should be introduced in the agreement which reads as under.
• Notwithstanding anything contained to the contrary the agreement is executed on AS IS WHERE IS BASIS. The society should make it a point to emphases that it is not their responsibility to obtain the consent of each and every member. However they will support the builder in all such issues.
• Notwithstanding anything contained to the contrary no financial liability of any nature whatsoever will be on the society.
The builder is given a licence to enter the premises for the limited purpose of construction and he would not have any right in the land of any nature whatsoever.
• Exit clause should always be there in favor of society in the event builder is not able to complete construction by say___ months.
Parking facilities of the existing members should be specified. A plan for the parking facility to be allotted in the newly constructed building where the existing members would be residing must be annexed to the agreement.
Once in a week the builder should hold a meeting with the Flat Purchasers on a fixed date. This should continue till receipt of occupancy certificate.
Completion Certificate should be obtained by the builder on or before ___________________.
Till such time the Co-operative Society should have a lien on at least three flats ad measuring about 10 % of the additional construction area.The said lien must not be on flats situated on top floor.
Tax liability of the Society / Each Member for various taxes like stamp duty, registration fee,VAT, SERVICE TAX etc if applicable should be worked out in advance. These liabilities will have to be paid by the builder a clause to this effect must be executed in the agreement.
To ensure that the builder / developer should construct terrace and Society’s office on the terrace of the building. The agreement should stipulate that the builder would be liable for a period of three years for leakage as well as other defects in construction.
As per BMC rules gymnasium / health club /society office is not included in FSI. The gymnasium /health club/society office must be constructed by the builder at his cost.
No right should be given to the builder to put up mobile tower, advertisement hoardings on the societies terrace or at any other place.
Servants room must be constructed on each floor. (This is applicable for posh societies)
The amount that has to be taken as Deposit / Donation from the incoming member by the Society should be decided in advance with the builder / developer and a clause to this effect should be incorporated in the development agreement. If the amount is not taken in advance than post dated cheques for the same should be taken from the builder.
• The maximum area that would be constructed by the builder should be specified in the agreement.
The stipulated number of flats as per fire brigade Rules should be kept vacant. It should be ensured that in the development agreement itself an undertaking to that effect should be obtained from the builder.
The time limit within which the construction would be completed should be specified. All expenses till receipt of building completion certificate would have to be incurred by the developer. If the construction gets delayed then adequate clause for delay in construction should be incorporated in the development agreement.
The height of the flats should be specified.
The type of lift along with the make of the lift to be specified.
The pro rate amount per sq. feet as standing in the books of accounts will have to be paid by the new flat purchasers. This is in addition to the donation amount that has to be paid by the new flat purchaser.
• In the event the developer does not hand over possession of newly constructed flat to members on or before ____________ than penalty of Rs. ________ per day per flat should be paid by builder to each flat purchaser. If inspite of payment of penalty till ____________
the builder does not give possession of the flat by __________ as well as building completion certificate by _____________ than the entire amount paid by the flat purchaser would be forfeited and the new flat purchaser will not get any right in the flat even if they are in his occupation.
• Copy of all the documents to government authorities, quasi govt. authorities as well as correspondence received from government authorities, quasi govt. authorities will be given to the society within seven days from the date of the correspondence done with the government authorities.
Insurance to be taken by the developer of residents/occupants as well as of his employees.
Adequate precaution will be taken by the builder of the safety of the employees.
Possession of premises to non members will not be given for a period of six months until and unless the possession of premises is given by the builder to each and every existing member of the society along with the occupation certificate.
• Original papers will not be kept by the developers. A copy of the papers received from government authorities as well as the reply given to various authorities will be given to the society within three days from the date of the receipt/ reply.
Builder will not introduce any additional financial partner nor will the builder transfer his right in the redevelopment project without the written consent of the society.
Same type of material in all buildings particularly the sale component.
48 hours water to be filled in all the flats before occupying the flat.
Flat not to be taken without occupation certificate. The date by which completion certificate would be obtained has also to be clarified along with bar charts.
No loans against property to be taken by the builder/developer. However the flat purchasers may take the loans against the flats provided the builder has complied with his statutory obligations.
Time schedule as to how work will progress.
Carpet area of the flat to be allotted to each flat purchaser should be certified by the builders architect. The architect should clearly specify that the carpet area is exclusive of items which are exempted from FSI like niche, drying space, dry balcony.
The details as regards the carpet area that would be constructed by the builder should be certified by the builders architect. In the event the builder wants to construct more than the rate at which he will sell the premises would be decided by the society and the society should
get additional amounts for the said area. The possession of the flat should be given along with POP finish on all the walls, safety door.
If there are changes in government policies which result in increase of fsi /tdr benefits the same shall belong to the society.
There should be an offer from the builder to reimburse the flat purchaser for the difference if raw flat has to be given Rs. ________ per sq. feet carpet area.
• Opinion as regards income tax liability as well as other statutory liability from builders chartered accountant / lawyer and the said amount to be taken in advance from builder before signing the agreement
• Title Clearance Certificate should be annexed to the individual agreements by builders advocate.
Compensation of Rs. __________ per flat to be paid by the builder for shifting of premises. For the leave and license amount post dated cheques will be given in advance for the entire period.
Compensation of Rs. __________ per flat to be paid by the builder for brokerage for each of the term of eleven months.
Compensation of Rs. __________ per flat to be paid by the builder for reduction of property tax.
Compensation of Rs. __________ per flat to be paid by the builder for formation of society.
Bank Guarantee of Rs. ________________ be taken to cover the construction cost as well as other statutory expenses like bmc expenses.
Three Phase electricity meter to be obtained by the builder at his cost for each of the flat purchasers in the individual flat purchasers name.
Individual flat purchaser can take the materials from the flat to the flat to be acquired on alternate accommodation/leave and license.
The possession of the plot will always be of the society and the developer will get the limited right to construct flats in the building as per the terms and conditions of the development agreement.
Construction has to be done as per IOD within the time period as mentioned in IOD.
One flat to be kept for visitors / guests (this has to insisted only if the project is a big one).
The Service Tax liability will be on the developer.
• The builder shall not construct an area of more than _______ sq. feet carpet area. For additional construction the builder will pay a sum of Rs. _________ sq. feet carpet area to the society.
The built up area sanctioned by BMC should be certified by architect.
Generator to be provided by developer The building should be at least one feet above the road level so that there is no water logging inside the building.
Date by which TDR will be purchased by the developer in societies name The Developer should give an undertaking that he will keep the mandatory open space as per BMC Rules and regulation and shall not apply to the BMC Authorities for con donation of the same without the written consent of the society.
The areas pertaining to niche, drying space, flower bed should be certified by the architect on record with municipal authorities.
Notwithstanding anything contained to the contrary it is expressly agreed that if plans are not passed on or before _______ and construction in not commenced on or within _____ days of receipt of noc than the developer will not have any right in the agreement and shall not object to the appointment of any other developer by the society.
The Development Agreement as well as individual members agreement would be registered and than only members will permit any sort of construction.
Collectors permission if applicable will be obtained by builder There should not be an arbitration clause in the agreement. In the event there is such a clause than one cannot approach the courts until arbitration proceedings are completed.
Cameras / cctv and intercoms to be provided by the builder in the newly constructed building Allotment of flat should be specified in advance. Allotment of parking will be done by the society.
Registrars permission for redevelopment to be obtained by developer at his cost.
To inform builder that the flat purchasers will not be liable in any manner whatsoever for any expense till building completion certificate is received from municipal authorities.
Committee members are in no way responsible for the redevelopment of building or for the financial matters connected with redevelopment of the building..
Concrete policy with regards to allotment of flats Plan of the building as well as a commitment that if there are changes in plan than something more than the promised area will be given.
INFORMATION SHOULD BE SUBMITTED BY THE
DEVELOPER IN THE BELOW MENTIOND FORMAT
DATE OF DATE
DETAILS OF INCOME TAX PAID IN LAST FIVE YEARS
INCOME TAX PAID
BY THE COMPANY
AS WELL AS SISTER
CONCERNS WHO WILL
HAVE TO ENTER INTO
AGREEMENT AS A
CAPITAL AS ON 31/3 OF
THE SAID YEAR DULY
CERTIFIED BY THE