sharing agreement between builder and you would provide that you are owner of flat and garage
Landowner and developer
I owned a property and gave it to a developer to further develop it into apartment. An agreement for development was made between us and it clearly stated that upon completion of the said property the developer promises to give us one flat and a garage. A power of attorney was also made which grants him to sell the rest of the flats. The property is completed now and the developer has granted us possession in the promised flat. Now what document states that the ownership of the flat is mine. Is the agreement for development is the deed of my flat or a separate deed needs to be made between the developer and me? Please advice.
Asked 7 years ago in Property Law
Religion: Hindu
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11 Answers
1. The "development agreement", "IF" duly stamp duty paid and registered, would be the final document to establish your absolute "Title-Ownership", over the Flat, alongwith the possession letter.
2. IF you infructuously execute another Sale Deed (which is not possible because there was no monetary consideration for the flat), THEN you would be liable for current property's rateable value for Stamp Duty & Registration Fees.
Keep Smiling .... Hemant Agarwal
Thank you sir for your reply. So according to you The Agreement for Development would serve as my legal document proving my ownership to the property. A few days back I applied for a loan against property from a bank and they are asking for "Registered Deed of Gift OR Registered Mortgage" and stated that Agreement for Development won't serve as the legal deed of ownership. What should I reply to them? Another question is apart from the Agreement for Development and Power of Attorney what other document is the developer liable to give me as his development is done.
Asked 7 years ago
supplementary sharing agreement between builder and you wherein it is mentioned that X flat and garage would fall under your share
2) agreement should be stamped and registered
1. Registered Development Agreement, wherein one Flat is to be allotted to you, in lieu of development of your property.
2. Registered POA
3. Possession Letter
4. Sanctioned Plans for the Building and Occupancy Certificate (OC) of the ready building.
5. Change the Bank, since the clauses of the "development agreement" is more than sufficient to prove your ownership.
Sir a registered agreement of sharing is required between you and builder specifying that the said flat is your share of the development and you have ownership right over the same the sharing agreement shall satisfy the need of the bank.
Sir sharing agreement will do and bank shall provide loan on same.
Yes it is the agreement between builder and you for the said flat. He has to abide by the same. If the said agreement is registered and had clauses for the same it's valid
1. You were already the owner of the land on which the building was constructed by the Developer.
2. You have got possession of your said flat by vortue of the development agreement you have executed with the developer and he did not sell the said flat to you.
3. So, you shall have no seperate deed for your said flat which has been developed by the Developer on your land based on the development agreement executed by both of you.
4. While selling your said flat, you shall have to write all the above in the recital part of the sale deed.
1. You have the ownership of the land on which your flat has been conmstructed.
2. Any construction made on your land is supposed to be your property unless you have conveyed the title of part or full of it of it to others.
3. In the instant casem you have sold all the other flats through the Developer being your constituted attorny.
4. The remaining unslod flat is held and owned by you for which there will be and can not be any seperate deed.
5. However, you shall have to submit document proving that you had the title of the land on which the construction of the building consisting of your flat was made.
Since you are the owner of the property you dont need to have any other registered document to prove title to the flats allotted to you by the developer.
In fact the the other flats being sold by the developer will be in the capacity of the power of attorney agent only and you are considered as actual owner for ratification purpose.
So the agreement for development of the property should solve the purpose, if the bank is insisting on any other document which is not legally feasible, you may refuse to produce such documents which are insisted by bank namely gift deed or mortgage deed.
You can look for some other bank for loan ignoring this bank which do not know the law on this.
The developer shall handover possession of the proeprty by a possession letter on his letter head, besides the agreement and the power of attorney deed etc.
The bank cannot ask for registered gift deed which is not legally correct nor the mortgage deed.