I have a piece of land in Patna which is now of very high value.I now don"t live in Patna as my son and daughters are living outside Bihar. Some 7-8 years back, a fraud case was lodged on it by some miscreants.I have been fighting the case for last five years.We decided to handover the property to a builder with a view that he will settle the case out of court.He has passed the building design on the land from the relevant agency.We have not yet made the agreement.However the builder wants to make a registered agreement before settling the dispute. We want that the settlement of the dispute should be done before agreement. The builder has put the following points:- 1.What guarantee do the builder has after setting of dispute by him that the land will be given to him by us.He suggests to add any terms that we like in the registered agreement. 2.The builder has already invested money and effort in getting building design approved. 3. He says he will invest more in registering the agreement in court.Why should he invest without a guarantee of land transfer to him.They also need a document of authority to talk with the disputed party. 4.Before agreement,the builder will take the design for revision ans subject to passing of the same design,they will make the agreement.If the building storey is reduced from 9 to 6,they will not do the agreement as the extra money to settle the dispute will come from the 9 storey building. Now what to do? Following are my question:- 1.is it possible to make a registered agreement on the land.what is the guarantee that the builder will settle the dispute and make the building. 2. if Yes,What terms and condition should i add to protect my interest.
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1. See a clause can be put with the timeline that in case the builder fails to settle the case and start work in fixed time like 6 months or so you are at liberty to cancel the agreement and builder cannot claim any damages or right on land.
2. Also nature of dispute and your share on agreement should be clearly mentioned.
3.Engage a lawyer to draft agreement as per your and builders term register it.
There is lack of trust between you and builder
2) best option is to for you settle disputes with the miscreants pending in court then enter into development agreement with builder
3) in alternative execute specific power of attorney with builder for resolution of pending case
4) you can enter into registered agreement with builder that you would on settlement of dispute with miscreants enter into development agreement with builder provided builder pays you x amount at time of execution of development agreement
1. Typically & Logically, the investing Builder would ensure that his interests are protected, as far as development & disputes are concerned. AND he is right about incorporating all the strategic clauses to protect his & your interests in the project.
2. You can go ahead with the agreement (registered) with clear & strategic clauses, PROVIDED he pays you a certain pre-negotiated amount as token and with clauses to rescind the agreement on failure of performance or violation of agreement clauses.
Yes registered agreement is very important and including clauses stating that the settlement of disputes will be done first before carrying on the development activity on the same and also include cancellation causes with compensation if not done so. If he still continues you can cancel the agreement and approach the court for damages
Land must be given in lieu of payment, registration of agreement has minimal fees. Only permitted floors on particular area land can be constructed, more than ceiling is illegal and if such condition is subject to fulfillment of agreement and deny him.
None authority will sanctioned more than permitted floors.
You can execute the agreement, this much money will pay at the time of agreement and all head ace will be of builder. If builder failed to solve dispute, no refund or half refund and if he succeeded, this more payment shal be payable or number of flats.
Builder may ask for POA, don`t give him authority to sell the land.
1. You can make a registered agreement before the same. In that make a condition that the construction will only be started after settling the issue.
2. You may please get in touch with a lawyer who may draft the same for you as per the requirements and the relevant conditions.
Let me know if I can be of some help.
Regards
If the property is disputed then it is not possible for any of the party to go for a registered agreement with out the knowledge of the court as the other party will bring the matter in the knowledge of the court immediately and court may pass the appropriate orders so wait till the final disposal of the matter.
A. First, you need to check the order sheet of the case as to whether the Court has passed any interim orders viz., temporary injunction, status quo order over the disputed land or not?
B. You can enter into registered agreement with the builder if there is no any adverse order against you. However, you need to take abundant precautions with respect to the same viz.,
1. Development of the Property shall be commenced only after settlement of the Court case by providing certified copies of the settlement of the case
2. This Agreement shall be cancelled upon failure of the settlement of the Court issue and the Developer shall execute the Cancellation of the Agreement before the Sub Registrar Office.
3. You may fix a time limit to settle the issue and incorporate a clause towards termination of the agreement by itself on failing to obtain decree copy or compromise decree or settlement order copies from the Court.
4. You can incorporate a penalty clause in the event of failure to settle the matter.
5. You should not delivery of the possession of the property until settlement of the Court case and mention like this.......upon settlement of the Court issue that the Developer shall be deemed to have been handover the possession of the land.
6. Try to avoid register the Agreement as you and your land will have been locked the same by registering the property. Hence, General Agreement with sufficient stamp duty is enough. Else you need to keep on calling the developer to cancel the registration to remove from EC document if the deal is cancelled.
1) You can make redevelopment agreement with builder and registered it the MoU.
2) You have insert both terms and conditions from all side keeping scenarios in the mind. If case won, settlement, 9 storeys or 6 storeys etc. All points should be in your favor whether it comes head or tail.
I can prepare MoU for you as per your wish.
You need to fix up an appointment and seek consultation with any good lawyer and get the agreements examined and follow their advice instead of trying to know everything online, because if there is a problem later each wording of the draft counts.
Yes you can make the agreement with builder.
Add clause that agreement will be executed only when the dispute over the land will be solved legally.
You should also add that in case builder fails to resolve the dispute then you will not be liable for losses suffered by builder regarding dispute resolution.
1. You may enter into a registered agreement with your own clauses added to it to drive away your fears also
This agreement will prevail and would be enforceable if the builder breaches the contract in between.
2. You can place your own terms to protect your interests based on the situation prevailing at your end.
