Collaboration or fleecing ?


Dear Experts,

I have recently inherited 2 floors of a lease hold (DDA/L&DO Lease) property. This is a 3 floor property and is located in NCR. Recently, a builder has approached me and offered to rebuild the property after he has acquired a floor (i.e. excluding my 2 floors) from my brother’s share.

He is suggesting that I could either opt for collaboration or to sell my share of the land to him. According to him I have only 50% share in the land, even though I have 2 floors of a 3 floor property/building (residential dwelling). I stay on one of the floors with my family.

His proposals are as follows:

a)      Market rate for 50 % land

 

b)      He would rebuild the property at his cost. He would retain 2 floors and basement. And he would give me2 floors and some consideration (cheque amount). The consideration amount is only 5-10% of the profit he is likely to earn after incurring the cost on construction.

 

My questions are as follows:

1.       Am I entitled to only 50% share in the land even if family settlement gives me right to 2 floors but, is silent on land share?

2.       What should be a fair deal for me?

3.       Can he sue me for partition or force me for arbitration?

4.       What else should I do to save myself so as to continue staying in my share of floors? Alternatively what should be a fair deal being offered by the builder? 

Thanxs

Shanta

 
Reply   
 
Lawyer

 

The share depends on the settlement that was made I presume that since it was between you and your brother it would be 50% depends on readng of the agreement.

The builder would have purchased the share of your brother and would have no intentions to stay in the property but would only be interested in a redevelopment as that is the way to make profits. He cannot force you to sell the property to him and you can keep staying in your portion.

 

Regarding the profitability I think the first option would be better one for him to reconstruct the same and give you two floors. The reason being that you will get a new constructed floor with all the new modern fittings and marble floors which would increase the value of the property.

 

The value that you would get after redevelopment and getting the new floors if you sell them or rent them would be much higher than that you would get now. After redevelopment you can sell the floors independently and since it would be a modern construction you will fetch higher prices than now. Te property rates keep on going high so seeking two new floors and some money would always be a better option than the second one to sell 50% share.

 
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Thank you Mr Sanjeev for your detailed reply.

Please suggest what % of the prevailing market price should be the "some money " in addition to the two new floors?

Also , please reply to some more pending  questions in my intial query

Shanta

 

 
Reply   
 
Attorney

First of all, we will have to see the agreement, if any, title deed. Accordingly, the outcome can be drafted herein. also what the builder is saying or willing is nothing to worry as you have your own share and till you dont want, no one can compel either personally or by court till you dont infringe any other's share of land.

So, do you have any tile document?

How was the family settlement was done/executed? Who were the parties and was it oral or written?

Accordingly, I can tell. Hopwever dont go ahead with the builder's view till you have consulted your any advocate friend or your own family members..

Regards,

Rohit

 
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