Dear Friends -
A FAMILY ARRANGEMENT was entered into among the six brothers/sisters where they intended to split the property of their father into individual flat portions.
In the FAMILY ARRANGEMENT document, there is a clause where the owners of the flats have agreed in principle "not to let out, or to lease out or part with or sell his/her undivided share to any outside agencies other than the family members. Under no circumstances, the flat shall be sold to any outside agencies other than the family members."
Can you please help by sharing your views for the below queries:
1) Whether the clause entered into the Family Arrangement really valid and can be held by LAW and By Other Family Members to NOT let specific flat owners rent or sell his flat? For example, if two of the brothers had to vacate their flats because of age and health reasons, can this clause prevent them from even letting out the place for rent? In my view Family Arrangements are really meant for the benefit of the family but in this case, the clause is very detrimental for the benefit of the family. Although it was seemingly intended to keep the family united, this clause can actually create potential problems within the family in future.
2) If you read the clause carefully, it is mentioned that the undivided share should not be let out or leased out. Can a "undivided share" be let out or leased out? Are there any laws that provide guidance on "undivided share"?
3) In continuation of Pt. 2, does that mean the flat can still be rented out as it is NOT an undivided share but a divided portion of the building?
4) What does the term "Family Member" refer to if this term is not defined in the FAMILY ARRANGEMENT document?
5) Should the FAMILY ARRANGEMENT be a registered document for the clause to be held valid? If not, what are the consequences?
Thank you very much for your assistance.
Regards
Savvy.
