Ownership of builder floor owner after plot conversion to freehold in delhi?
Shobit Goel
(Querist) 29 May 2014
This query is : Resolved
Hello experts,
I have been researching on forum on this topic for few weeks now but haven't found any related answer yet.
For building constructed on a plot issued by DDA on which each floor belongs to different person through gpa sale, DDA allows conversion of plot to freehold by issuing conveyance deed in joint name of floor owners.
Does this process changes ownership of floor itself?
Or does it only changes land ownership from dda to current floor owners?
If it changes land ownership only, will it require any kind of partition? Or title of floor is well protected with previous agreement to sell?
Any help with what should be further course of action will be great.
Thanks
malipeddi jaggarao
(Expert) 30 May 2014
Building (multi-floor) is constructed on a plot alloted by DDA to one person. Others have purchased floor rights (with undivided share in the plot) through GPA of the original allottee.
For selling the floor rights whether the allottee obtained the permission from DDA? You say that DDA now allows conversion of plot to free hold. What was earlier position before such conveyance deed?
However, since the conversion to free hold is by conveyance deed in joint name of the floor owners, it is more appropriate. Though this changes only land ownership, their floor rights will be through separate document which stand good.
According to me there is no problem, the floor rights will be in tact and no need to do anything more.
Shobit Goel
(Querist) 30 May 2014
Malipeddi Sir,
Thank you for your reply.
In delhi, it became a common practice to sell builder floors through gpa without any approval of DDA, though it breached leased terms but was soon accepted by DDA, and they allowed conversion in name of gpa holders.
I guess, earlier conversion used to be in one person name after other owner named property in name of single person
One other question though, in such scenario if a floor owner wants take loan against his floor, will bank accept his agreement to sale as collateral or will they need freehold conveyance deed also?
malipeddi jaggarao
(Expert) 30 May 2014
The Bank will ask the papers including free hold conveyance deed for considering any loan to any of the floor owners.
T. Kalaiselvan, Advocate
(Expert) 01 June 2014
Expert Mr.Malipeddi Jagga Rao has very properly addressed the query of the author. Nothing more to add except to say that the conveyance deed executed by DDA jointly n favor of floor owners, may be mutated further if there are more than one owner in the floor for proper acquisition of title.
