Sharing land between friends and joint construction
I and my friend want to purchase a plot in residential zone of 1500 sqft jointly in PCMC, Pimple Gurav (Pune, Maharashtra) area. The dimension of the plot are 23(front)*66(Length).
We are planning to divide the ownership as 11.5*66 each. After buying we want to build the property jointly by availing the loan from bank.
We want to make an agreement with below conditions -
1. Both parties will avail the plan & permission to develop the building for availing the bank loan**.
**Bank loan is subject to approval, I will check with the bank.
2. Both parties will be sharing the land to construct the property, the construction would be individual floor, 1st floor - Owner 1 2nd Floor - Owner 2.
3. Property will be construct as per the T&P guidance, any alteration/extension can be carried out only after agreement of both parties.
4. Both parties will not be able to sell the property(Floor) for say "5" years.
5. After 5 years property can be sold without any legal issues without any liabilities to other party.(Need to check legal liabilities on this from lawyer)
6. In case of selling the property (floor), the new owner(buyer of the floor) can avail the ownership of land and the floor.
Can we make such conditional agreement.
Asked in Property Law from Pune, Maharashtra
1) plot can be purchased in joint names .
2) since you want to take bank loan for development of property it is suggested that you check with the bank amount of loan that can be sanctioned in your names .
3) for carrying out any structural alterations in building consent of co owners is required .
4) you can register the individual floors separately in your names .
5) dont mention any lock in period for sale. you can mention that in case any co owner desires to sell his share first right of refusal would be for the other co owner
How the land ownership will be divided among the parties as mentioned "joint names".
Meaning do we(both parties) need to divide the plot between two people and make the separate individual registries
Can create only one registry with two owners name on it?
and in either of the cases how the selling can be proceed in the future for new buyer.
Asked 2 years ago
1) it is advisable that partition deed be entered into between the co owners for division of property by metes and bounds
2) it should be duly stamped and registered .
3) co owner can his share to third party by sale deed
1. The land can be purchased in joint names and sanction for thr construction can be availed jointly. The Bank loan also can be availed jointly,
2. Both the parties can construct individual floors from the Bank loans availed by them either jointly or individually,
3.An agreement can be executed by both the parties stipulating that no alteration/addition to the construction will be made by either party without the written consent of the other party,
4.& 5. This is not as per law. You can not prevent anybody from exercising his fredom to act as per law which includes selling of his properyty. However, in your case, you can include the clause of pre-emption i.e. if any party wants to sell his portion to a third party he should offer the property first to the other party for sale at the same price which has been offered by the third party,
6.Yes, he will get the ownership of his floor and the share of the land owned by its seller.
1. One can sell what he has to other,
2. In this case the buyer of the floor of one party also will get his share of the land,
3. However, if it is not partitioned and demarcated, then a partition deed shall have to be executed by the co-owners,
4. It is suggested that right from the begining, the area of the land is divided and demarcated between the joint owners and mentioned in the deed,
5. It will save both the parties from future problems, if any.
1. The ownership can be joint and so can be the bank loan.
2. The individual floors can be registered separately in your respective names.
3. Once the property is registered individually you cannot stop the owner from selling his share. The right to sell is inherent in ownership. However, this does not stop you from entering into an agreement to offer the first right of purchase to the co-owner in the event of sale by the other co-owner.
A partition deed should be drawn up to clearly demarcate the area of land. This would obviate the problems which may emanate in future at the time of sale by either co-owner as the area of both co-owners will be identified and demarcated.