Dear Sir, Our property is under redevelopment. Subsequent to registration of Original Agreements, the Builders changed the constitution of its firm from partnership to a Company. Not only this even the proposed plan layout, free area, flat total carpet area, additional purchased carpet area & flat numbers have got changed due to change in FSI rules and so on. When we insisted for executing supplementary agreements, the builder denied and said its not required & cannot be done as per Regn. Rules in Mumbai. Since the its only conversion of firm to Co., & regarding change in in lieu of area, flat number, etc, he said, we will give it in writing on our company letter head. Presently with most of the tenants the builder has executed deed of cancellation and signed new agreements containing all of the above changes. My Qn. : 1. Whether making of supplementary agreement & its registration is not allowed or stopped in such case, esp. in Mumbai ? 2. To what extent such a Letter on LH stands legally valid in case of any disputes with builder or say at the time of selling out of my property in future years, as the the carpet area will not be the same as per the originally registered agreement. 3. Whether such a process of deed of cancellation & re-registration a fresh leads the existing tenants into any problem from view point of if the builder delays in making the project. The project has already took 9 years & not near to completion. Thank You.
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if there is change in carpet area , plan layout , change of flat numbers fresh agreement should be executed by builder duly stamped and registered. earlier agreement can be cancelled with mutual consent
2) reason builder is not doing so is to avoid payment of stamp duty and registration charges
3) registered agreement prevails over letter given by builder mentioning carpet area of your flat
4) it would not create problems for tenants rather protect their interests
Supplementary agreement is executed if there are some changes in form of addition and deletion of terms. It has to be registered and binding to all. It's valid in case of Disputes like the main Agreement
1. all of the changes regarding the change in constitution of builder, the entitlements of tenants, etc. are REQUIRED TO BE INCORPORATED IN A SUPPLEMENTARY AGREEMENT WHICH HAS TO BE REGISTERED
2. THERE IS NO SUCH RULE THAT A SUPPLEMENTARY AGREEMENT IS NOT ALLOWED - ASK THE BUILDER WHY HE SAYS SO AND TO SHOW THE CIRCULAR OR NOTIFICATION OF GOVERNMENT WHERE THIS IS STATED
3. THIRDLY IF HE IS CANCELLING THE ORIGINAL AGREEMENTS AND EXECUTING FRESH AGREEMENTS TO INCORPORATE THE CHANGES THEN CHECK WORD TO WORD WHAT ALL CHANGES HE HAS MADE IN THE NEW AGREEMENTS. IT MAY BE THAT UNDER THE GARB OF NEW AGREEMENTS HE WOULD BE PUSHING IN ADDITIONAL LIABILITIES ON THE TENANTS. ALSO THE ORIGINAL AGREEMENT WOULD CONTAIN THE STIPULATED PERIOD WITHIN WHICH HE HAD TO COMPLETE THE PROJECT AND HANDOVER OF POSSESSION. SO IT IS MOST CERTAIN THAT IN ORDER TO GET OVER WITH THE DELAY BY HIM, HE HAS COME UP WITH THIS PLOY OF CANCELLATION AND EXECUTION OF FRESH AGREEMENTS
4. WHATEVER THE BUILDER STATES ON THE LETTERHEAD REGARDING THE AREA CHANGES ETC. WILL HAVE NO LEGAL BINDING EFFECT AND WILL RENDER YOUR TITLE DEFECTIVE. ALL THESE HAVE TO BE IN A PROPER REGISTERED AGREEMENT
IT APPEARS THIS BUILDER IS A CHEAT!
1. See new agreement in you case would be better option then a supplementary agreement or you can make an confirmation and ratification agreement.
2. See it would be helpful but in case it is in registered agreement then it would be better of option.
3.No in new agreement timelines can be kept same as in old agreement then it wont cause issue.
1. Supplementary agreements are generally not registered but the supplementary agreements are made when there are changes as what you have mentioned.
2. Even the unregistered supplementary agreement will have the same contents, hence for now you can have the letter head contents and secure them so that it can be used for defending your interests in future.
3. The affected parties may resort to legal action for the delay through consumer forum for relief and remedy
