• As land owner I want to know the pros n cons of contract before going to an agreement with builders

Need to know the wat so that I can jave maximum benefit after constrction done by builders

Kamarddin Ahmed
Asked 4 years ago in Property Law
Religion: Muslim

3 answers received in 10 minutes.

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10 Answers

What exactly do you need to know as your query is not very clear.

Siddharth Jain
Advocate, New Delhi
5930 Answers
101 Consultations

5.0 on 5.0

Sir there are all pros only in case there is any delay deficiency in the service the claim for same can be asked further both the parties has to abide with the condition of the contract amount time and quality can be underlined in the contract.

Further contact through kaanoon for elaborate discussion on the issue.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Agreement needs to have all the conditions laid down so that the builder does not cheats you later.

Get the same checked from a lawyer.

regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

The usual arrangement is 40:60. Here you are expected to provide your land for construction. While the developer will provide the capital and labour needed for construction. Depending upon how the investment equation changes, the ratio will change. The more you invest, the better the ratio becomes.

In a nutshell, if 100 flats come out, you will get 40 of those. Joint venture projects are picking up popularity due to growth slow down in many metros (pune, bangalore, hyderabad to name a few) and also because it minimizes the risk for developer to acquire a land (for a very high capital) and sell 100 % of inventory in time.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

check what is FSI available on land . maximum construction permissible

2) enter into development agreement with builder wherein on development you get 50 per cent of all flats constructed on said land

3) builder should complete construction within stipulated period

4) responsibility of obtaining OC on builder

Ajay Sethi
Advocate, Mumbai
87939 Answers
6207 Consultations

5.0 on 5.0

1. Once the agreement is executed it becomes the charter of mutual rights and liabilities.

2. Get a flawless agreement drafted by a lawyer.

3. Retain the remedy of approaching the civil courts instead of choosing arbitration.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

You need to enter in a developers agreement and you need to negotiate the deal which is beneficial to you and make sure that you are not stuck in any financial year legal obligations based on the agreement

It will be a good idea to get the draft agreement be checked by an advocate before you sign the agreement

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1. if you are going for area sharing in the new building, then following points you need to consider:

a. track record of builder - how many projects with completion certificate has the builder completed

b. solvency and financial stability of builder

c. stipulated date of handover of possession of your share of areas in the new building

d. penalty for delay in handover of possession as above

c. all GST and other tax liability for allotment of areas in new building to you will be on the builder

d. execute and register a properly and carefully drafted development agreement

e. bank guarantee from the builder in case he defaults in his commitments

f. the amenities which he would provide in the areas to be allotted to you

g. standard of quality of the construction materials to be used for the new building

h. consult your CA for any capital gains tax that will accrue to you on submitting your property for redevelopment

i. force majeure clause and what all constitutes force majeure

j. if before completion of the construction of new building, there is any increase in FSI then how will that be shared

k. take a survey by personally visiting all the projects undertaken by the builder, whether completed or ongoing

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Agreement has be clear with regard to sharing of profit/flats. Who shall be responsible for paying GST etc.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Advantages of a fixed bid

Easier Budgeting. You agree on a price and are able to plan on it fairly reliably.

A fixed bid may protect you if the job is unexpectedly expensive (within reason, generally if the scope creeps too much the initial fee won't hold up).

With a fixed bid, a contractor has an incentive to expedite the work and move on to their next project.

Disadvantages of a fixed bid

Contractors may pad their bids to protect themselves against unforeseen circumstances.

You will miss out on potential savings if the job ends up using less time and materials.

If the contractors expenses start to exceed their expectations, they may cut costs to get back under their target budget, reducing the quality of the final product. This can be protected against by carefully defining the desired result within the agreement.

The pros and cons of a time and material approach are the exact opposite.

Fixed bids are generally used for larger protects. Both parties agree on a price that they will be happy with and proceed. With smaller projects, it can be difficult to come up with a good fixed bid price. It is essentially a regression to the mean problem.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

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