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H Cutchhi (Manager)     31 May 2010

Builder wants to provide TENTATIVE plan

We own a flats in a building that is going to be redeveloped.
The said flat is held on ownership basis. However, there are
other flats in the building that are on tenancy basis. The
property owner(landlord) and the builders have executed and registered
an agreement wherein the builder has been given the right to
redevelop the property.

The builder now wants to execute an agreement with us, the
flat-owners, so that he can get vacant possession of our flats
and can demolish the said building and re-construct a new one.

He has agreed to provide us new premises in lieu of our existing
flat but says he can only annex a TENTATIVE plan to the agreement
we execute with him and the existing property owner. The builder
says he cannot annex the plan approved/sanctioned by the municipality because
it will take 3-4 months to have the plan passed and sanctioned.

Also he agrees to show us the Intimation of Disapproval (IOD) and sanctioned
plan before he asks us to vacate our premises in order for him to demolish
the building.

There is also a clause in the agreement which states that the builder
shall have the right to modify the building plan but shall not make any
change to the agreed carpet area of the new premises he will offer to us
in lieu of our existing premises, without our written consent.

He therefore says, we should co-operate and not unreasonably delay
execution of the agreement in relation to our flat with him and
the property owner (landlord).

We however have the following questions:

1.) Should we insist that the builder annex the PLAN APPROVED/SANCTIONED
    BY THE MUNICIPALITY to the agreement we execute with him and the property owner,
    or
    Can we accept a TENTATIVE PLAN for now, given that we need not vacate till
    he provides us a copy of the PLAN APPROVED BY THE MUNICIPALITY later on?

2.) Can we by means of a "Deed of Confirmation" executed later on
    seek to have the copy of PLAN APPROVED/SANCTIONED BY THE MUNICIPALITY annexed to the
    agreement we execute at present time? Will such an ANNEXURE have legal validity?

3.) Given that we need to execute a "Deed of Confirmation" later, in order to annex
    the PLAN APPROVED/SANCTIONED BY THE MUNICIPALITY to an agreement we execute at
    the present time, do we need to include a clause in the present agreement stating
    our intention of executing a deed of confirmation later on?

4.) Also, can Commencement Certificate (CC) be provided before the building is demolished?
    The builder says he cannot provide us with CC because the municipality will provide
    him that only once the existing structure is demolished.
 

Looking forward to your early replies.

Thanks in advance,



Learning

 1 Replies

H Cutchhi (Manager)     08 June 2010

I was hoping to get some answers here, but I guess even experts don't seem to know the answers! :-)


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