Hi, My Father & his brothers gave Land for Apartment construction to a builder who firm is sole proprietary and had registered GP cum Sale development agreement from site owners. Builder has sold some flats by taking lump sum amount and one of her relative misused whole money. Now she is not in a position to complete the project due to lack of funds. Since my father is responsible person for bring the builder. I want to take complete ownership of this venture and complete. Builder is agreed to handover the project legally. We have contacted a legal adviser and he proposed to cancel the current Builder agreement and go for a new agreement. Now the question is, is there any process available to take the owner ship of project without cancelling existing builder agreement? Also please advise the best process to take up the project legally. Please let me know if you need any clarification. Thanks for your response. Sasidhar
1) in case builder has failed to complete construction within stipulated period you can terminate the contract
2) if builder has given bank guarantee encash the bank guarantee
3)you can claim damages from the builder
4) enter into fresh agreement with another builder as suggested by your lawyer
Hi, without cancelling the agreement you can't take up the project.
Hi, the best option would be to cancel the builder agreement. That way you can start afresh and old commitments assigned to builder and you end up with no liabilities. The second best option is that builder can give you(project developer and landowner irrevocable assignment rights and no objection certificate). Ideally this assignment deed should be registered.you can then complete the flats and handover possession to existing clients and also do new registrations. However with small risk we can go ahead without registration of assignment deed. Vide this assignment deed the builder assigns all his assets and accounts to you and vide this agreement you will also get control of flats already sold by the builder. Vide this agreenent you can collect any pending monies from existing clients and also deliver possession to clients. In case of new clients you can enter in to agreement(land owner, developer and new client) and here the builder can sign NOC and also sign sale deed as witness. Hope this helps.
The cancellation of the existing agreement is the condition precedent to the execution of a fresh agreement. After the fresh agreement is executed between you and the builder the project can be executed in accordance with the new agreement.
Now the question is, is there any process available to take the owner ship of project without cancelling existing builder agreement? Also please advise the best process to take up the project legally.
Please let me know if you need any clarification.
If you want to safeguard your interests ad rights in the property likely to be funded ad proceeded with, i would be advisable to cancel the previous agreement and replace with a fresh agreement in your name.
