Hi,
For this purpose, you may enter into an effective contract with the party having all fruitful terms and conditions for you. Get the contract registered. You may be able to recover everything on the basis of that.
Allowing construction on my land
Hello experts! I have a piece of land where a party is showing interest in setting up their restaurant business. If I allow them to do construction on my land and re-pay their building expenses later, are there chances of me losing the land to them (worst case). OR How can I make this arrangement full proof? Thanks,
Asked 7 years ago in Property Law
Religion: Hindu
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
10 Answers
Construction on land should be done by you only
2) you can take loan from bank for carrying out construction
3) enter into lease deed of your premises for restaurant for period of 5 years or more with renewal clause
4) agreement should be duly stamped and registered
Sir make a joint developer agreement register same with the condition and time.frame you repay them and take over the building a registered agreement shall protect the rights .
Make sure you right in agreement they have the possession as tenant only so that they can be evicted once the payment are made.
Firslty, when you are allowing someone to construct on your land then you should have an agreement in writing irrespective of the fact that whether you are selling it or renting it to them.
Secondly, without any agreement if they later on after sometime demand compensation or any amount in the account of construction by them which they may say done for you then you will be in trouble.
Thirdly, and also why would someone give his land like this.
Fourhtly, make an agreement and put everything in it, even if the party say to pay after the construction, at least you would have some strong evidence to recover the same.
Rest is on you, Good Luck...!
It's better to enter into joint development agreement with them or BOOT agreement with them so that they can build own operate and thereafter transfer the building and land to you as per agreement. Unless you mortgage or sell the land chances of you losing land is less.
You can leave the land to the party and allow the construction through the lease document for certain period and includes the clause in the agreement to repay the cost of construction of concrete structure as per the agreed cast within a certain time frame before the expiry of the lease period.
Please make this lease document registered with the registrar after payment of required stamp duty.
Before any construction you should make an agreement through lawyer.
Enter into a leave and license agreement with them before you permit them to use your land for running their restraunt business.
Hello,
Enter into a MoU with them.
engage a lawyer who may draft the same for you.
Each and every condition should be mentioned in clear terms.
Regards
You can enter into lease agreement for a stipulated number of years for vacant land on the terms to remove the structure and deliver vacant possession of land on expiration of lease agreement.
The lease agreement deed may be by a registered document.
This will protect your interests in the land.
