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Mrs . Shanta Rani (Housewife)     08 January 2012

Fair deal ?

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 in advance

Shanta



Learning

 1 Replies

sanjay kumar (BE/ LLM in Corporate Laws)     09 January 2012

It is noted that the Land is Lease Land and not free-hold. It is also noted that it is a Three-storey property. Now..what was the initial status of the property ? Was is sold by DDA to 3 persons separately or 2 or 1 person. If the property had initially three owners(for 3 Flats), in that case you share on the land will be 2/3rd otherwise half.

Secodnly,coming to the fair deal. What is the terms of the lease with respect to expiry. If it is expiring in the next 5-10 years, it will be better for you to sell the property at market rate and quit. This is the safer option. But if the lease term is more say 25-30 years you may either accept the offer of the Builder of selling the land and getting 2 floors or refuse to enter into a deal.

In my opinion, first check the reputation of the Builder. Your case is quite common in Delhi/NCR and many people have been benifitted by accepting the offer of the builder. But before, you take a decision, do a market survey for the same type of deals in your neighbourhood and try to find the terms of those transaction.

The best final deal will depend on many factors which can be discussed only face to face and looking into all the documents and proposals. 

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