• Change in name of building which is under construction by builder

I have purchased a residential under unconstruction property in mumbai city limits and the agreement 
is duly registered by builder and my self , i have also paid 2 instalments and GST as per RERA 
now builder is asking to change the name of the building due to some issue within them
 
Solution by the BUilder : They will issue me letter requarding name change and maharera certificate reg name change.

My QUESTION IS : 
since in index 2 of the agreement all address are already mentioned including building name ( which builder wants to change and requires my consent on form) so legally how can this be done and what paperwork as an individual i should do so in future if i have to sell property or give for address proof for passport etc i wont have any problem.
please expert your valuble guidance required
thanking you
Vikram
Asked 12 months ago in Property Law
Religion: Hindu

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15 Answers

Deed of rectification has to be executed to rectify the name of building in registered sale deed 

 

deed of rectification has to be stamped and registered 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Tell him to make an addendum or a supplementary agreement and register it 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

You need to go for rectification deed with new name in already registered documents with builder

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

  1. Obtain Builder Documents: Get a formal letter explaining the name change and a copy of the revised MahaRERA certificate.

  2. Supplementary Agreement: Execute and register a supplementary agreement with the builder referencing the name change.

  3. Update Index II: Request the builder to update Index II with the Sub-Registrar.

  4. Document Retention: Keep the original agreement, supplementary agreement, builder's letter, updated Index II, and revised MahaRERA certificate for future address proof.

  5. Consent Form: Ensure the consent form clearly states the name change doesn't affect your rights or obligations.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
2070 Answers
14 Consultations

Since the sale agreement has been executed by a registered deed there will be a reflection of the original name in the encumbrance certificate hence any document executed subsequently to effect a different name of the building replacing the original name has to be executed by a registered deed alone in order to find the new name of the building properly incorporated in the property encumbrance records.

The builder may rectify the same either by a supplementary agreement or a rectification deed but ensure that the subsequent document is executed by a registered deed and also you may exercise caution and properly peruse the papers referred to you seeking your consent before signing it.

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

- Since, the said agreement is registered , then to rectify the name of building , the builder should execute a registered Rectification Deed. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear Client,
The name change of the building needs to be properly documented so that in the future, there are no problems with property ownership, address proof, or resale. Legally, the builder can change the building name by giving you a letter stating the reason for the change and also by updating the MahaRERA certificate with the new name. However, as the original name is mentioned in the registered agreementIndex IIthe builder needs to execute an addendum or supplementary agreement with you, duly stamped and registered, specifically recording the name change and linking it to your registered agreement. This will ensure that all records, including your property ownership documents, are consistent. Keep copies of all related documents, including the builder's letter, updated MahaRERA certificate, and the registered addendum, for use in future address proofs or transactions. It is always advisable to consult a lawyer to review the paperwork for protecting your legal interests. Let me know if you need further assistance.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

Dear Vikram,

Here’s how you can address the situation legally:

  1. Builder's Obligation:
    The builder must ensure that the name change is officially updated with the relevant authorities, such as the municipal corporation and the Maharashtra Real Estate Regulatory Authority (MahaRERA). They should provide you with:

    • A letter formally notifying the name change.
    • An updated MahaRERA registration certificate reflecting the new building name.

  2. Supplementary Agreement:
    Since the building name is part of your registered sale agreement and Index II, a supplementary agreement must be executed. This agreement should:

    • Clearly state the change in the building's name.
    • Mention that all other terms of the original agreement remain unchanged.
    • Be registered with the sub-registrar's office to ensure legal validity.

  3. Updated Index II:
    After registering the supplementary agreement, ensure that the updated Index II reflects the new building name. This is crucial for future use as proof of address in legal and administrative matters.

  4. Builder's Responsibility:
    Ask the builder to assist with any necessary notifications to authorities, such as municipal offices or other agencies, to avoid future complications.

  5. Additional Documentation:
    Keep copies of the following for your records:

    • Original agreement and Index II with the old name.
    • Supplementary agreement with the updated name.
    • MahaRERA certificate and any builder-issued communication regarding the name change.

  6. Future Transactions:
    Ensure that all documentation provided by the builder is accurate and consistent. This will safeguard you against any issues when selling or using the property for official purposes.

For added protection, you can consult a property lawyer to review the supplementary agreement and ensure compliance with all legal formalities.

Thanks and Regards,
Advocate Aman Verma
Legal Corridor

Aman Verma
Advocate, Delhi
502 Answers

If both agree for change of name, execute a supplementary agreement  regarding change of name in index 2. The wording can be…

  1. This supplementary agreement is executed  on….. in continuation of previous against dated …registered on …… in the  office Sub-Registrar at….
  2. It is mutually agreed that the name of scheduled property  mentioned in index 2 “abc” shall be changed to “xyz”. From henceforth, the  scheduled property shall be known as “xyz.”

 

                                                                                                    (Signature)

                                                                       Party of the  first part             

 

                                                                         (Signature)                                                                                                      

                                                                                                   Party of the second part

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

Don’t except above condition.

 

2) Don’t give your letter of consent for change of name if the builder is not willing to execute supplementary agreement.

 

3) One-sided agreement is not possible

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

In any case the sale agreement is not a title document.

The registered sale deed is only considered as valid proof for title to the property.

The builder has to execute a supplementary agreement to change the name of the building from the one already mentioned to the one proposed to replace in the sale agreement.

For this it becomes pertinent to follow correct procedures.

The builder cannot avoid this step.

 

Hence you may proceed 

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

Legal Guidance on Name Change of Under-Construction Building

  1. Builder's Clauses in the Agreement:

    • If the registered agreement explicitly allows the builder to change the name of the building during construction, this is legally binding. The builder’s offer to provide a letter and RERA-approved certificate is sufficient documentation.

  2. Accepting the Builder's Condition:

    • It is reasonable to accept the builder’s condition if they provide:

      • A formal letter explaining the name change.
      • A copy of the revised MahaRERA certificate reflecting the new name.

  3. Supplementary Agreement:

    • If the builder refuses a supplementary agreement, it cannot be executed unilaterally by you. Both parties’ consent is necessary for a supplementary agreement to be registered.
    • Instead, retain all relevant documents, including the original agreement, the builder's letter, and the RERA certificate for future reference.

  4. Post-Possession Steps:

    • Once possession is received, the sale deed for the flat will be executed in your name. This document will reflect the final name of the building.
    • Ensure the builder’s letter and RERA certificate are mentioned during the execution of the sale deed to avoid future complications.

  5. Protecting Your Rights:

    • While signing the consent form, ensure it explicitly states that the name change does not affect your rights or obligations as per the registered agreement.

  6. Using the Property for Address Proof:

    • For address proof (passport, etc.), retain:

      • The original agreement.
      • The builder's letter.
      • The revised RERA certificate.

Suggested Actions:

  • Accept the builder's condition if they provide the necessary documents.
  • Ensure the consent form safeguards your rights.
  • Retain all documents for future reference.
  • Upon possession, ensure the sale deed reflects the new building name.

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
2070 Answers
14 Consultations

i would like to see the clause in the registered agreement for sale which the builder has relied on in order to refuse to make a supplementary agreement

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

If it’s in agreement then it’s fine but he needs to rectify the same in any previous agreement at his own cost. Yes rectification deed will be enough 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

In response to your queries, here's a brief analysis:

  1. Is it correct to accept the builder’s condition?
    It is common for builders to have the right to change the name of the building in an under-construction property, as stated in the agreement, until possession is handed over. However, the conditions should be clearly outlined in the agreement. As long as it is mentioned explicitly in the registered agreement that the builder has the right to make such changes, this condition can generally be accepted.

  2. What if the builder doesn’t agree to a supplementary agreement?
    If the builder does not agree to a supplementary agreement, you cannot unilaterally modify the terms of the original contract. Once you take possession, if the name change of the building causes significant issues, you may seek legal recourse. However, in such a situation, modifying the agreement without the builder's consent (i.e., a one-sided agreement) would not be legally valid. You cannot simply re-register the property with a supplementary agreement without the builder’s presence or consent.

To safeguard your interest, it is advisable to thoroughly review the terms with your lawyer and ensure that all changes are documented appropriately in line with the original contract and RERA guidelines.

Thanks and Regards,
Advocate Aman Verma, Legal Corridor.

Aman Verma
Advocate, Delhi
502 Answers

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