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  • Can builder sell or negotiate the amenities approved by the Development Authority

Can a Builder/promoter sell or negotiate (any) amenities approved for any residential project by the development authority? If shops have been approved in any residential project within the area of the project approved by the authority and the sale deed of flats has been executed for entire project area, can the builder handover these shops to the land owner as part of their share in the project? 
Will the approved shops be part of the common area of the society?
Who shall own the shops approved and available on the project area registered to the flat owners?
Asked 7 years ago in Property Law
Religion: Hindu

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21 Answers

builder can hand over shops to landowner 

 

2) shops are not part of common areas of society 

 

3) land owner would be owner of the shops

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

The shops are not part of common area. The builder can sell the shops and can also give it as share to the land owner.

No the approved shops won't be part of common area.

 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Yes, Builder can hand over shops and flats to the owner of land. As per their development agreement had happen between both of them. And if its mentioned in that owner has rights to sell the flat or shop can sell it as per is wish accordingly.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Yes as.they shall not be demarcated in the common area handed over to or to be handed over to society.

Builder can sell the designated areas other then the common area and amenities.

 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

builder can sell the shops as it does not part of common areas for benefit of all members 

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

Dear Client,

Not amenities but sold do. But in residential area, such shops/commercial activity not permissible Not count in common area.

Shops will belong to land owner as per BDA between them.

Proportionate area of land ownership and shops are independent to each other. No right of shops owner on land.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

so landowner is entitled to 40 per cent of super built area 

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

There must be a sharing agreement deciding the specific share between builder and the land owner . The property shall be shared accordingly.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

society shall maintain the area charge shop owners maintenance 

 

both flat owners and shop owners have to pay maintenance 

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

Shops Security and maintenance should be part of society if the shops are under society's  premises.

If all shops are not paying maintenance to society than remove or take out all there Safety and security.

 

Society need to pass byelaws for this to collect maintenance or not provide security and safety.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

are the shops in the same building as the flats sold by builder?

 

the builder can form a common society of flat purchasers and shops owner

the builder can then convey the land to society such that the society gets 60% undivided share in the land and balance 40% undivided share remain with the owner as per DA

So in above scenario the society will be entitled to ownership rights of building (comprising of residential and commercial units) + 60% UDS in land 

as the shop owner will come under society and will be paying maintenance to society, the problem of maintaining the shops would get resolved

obviously since the owner has retained 40% UDS in land, he would be liable to 40% outgoings of the land

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

Hi, 

The common area consists of parks, roads, stair cases etc. The shop may not be covered under these and some prospective buyer out of residents of society may buy the shops. The owners of shop as well as society will be responsible for maintenance/security/safety/lights/cleanliness of that area. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

Land owner himself , it`s dose not comes under common area.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

The shops shall also be part of association and for same they shall maintenance for security water.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

No he cant. But it still depends on the entire recitals of development agreement.

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

The development authority is more concerned about the immunity is required to build up a Housing Society and if there are commercials allowed in the housing society that can be used as a commercial the Builder is authorised to improve the society living by providing extra amenities and sometimes he is allowed to sell the amenities to the prospective buyers but after the transfer of the property to resident welfare association the Builder build have no right on the amenities and that all the immunity is will be transferred to resident welfare association for its use also at the same time the resident welfare Association will not be able to sell out any of the amminities to any prospective buyers but they can use the amenities to earn money which is to be used for Resident welfare Association

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

  1. As per the ke formation mentioned in the present query, makes it clear what everything have been stated in back and white over the registered documents.
  2. And it is also clear as to whom it should go as the approved portion has also been made part of the agreement.
  3. Now, for the maintenance isuue, the individual irrespective of being the whole society also, would be responsible for the maintenance.

Rest, would need to go through the agreement in detail to give more appropriate and precise advice.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

The builder can allot the shops built in the residential area to the land owner as par of their joint agreement, there is no legal infirmity in it.

The shops allotted to the land owner do not come under the common areas of the association, they can be treated as separate units just like other residential flats.

The shops will be owned by the persons who purchase them under registered sale deed.

 

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

The builder shall do the acts as per the joint development agreement entered with the land owner, hence there can be no legal impediment on it.

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

The development agreement what you have quoted is very clear about the entitlement of the land owner in this project.

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

The shop owners shall come under the association for the purpose of maintenance  however the shop owners cannot be charged with the other maintenance charges which they dont have any reason to utilise.

The can be left to form their own association for maintenance and other related activities among themselves.

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

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