Daksha (Manager) 22 September 2009

Reveisionary rights

Hi,

I am a Hindu and we are planning to buy a residential House. The plot in which the building is constructed is a Christen plot and it is supposed to be sold only to Christen community. The builder is Hindu and in the sample agreement shown to us by the builder it is mentioned that the Builder has acquired a reversionary rights in the property.

What does it mean? What would be its implications? Will it not mean to ownership?

Please advice as early as possible.

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2 Replies

Adv. Deepak (Advocate) 22 September 2009

Dear Daksha, Reversionary Rights means the grantor of the estate has not disposed of the rights he has over an estate while making a grant. In your case, if the builder has retained the reversionary rights over the estate, he has got the possession of the estate and he can dispose of the estate as per his own will. It will definitely mean the ownership. However, to confirm what he says is correct, you may ask him to show you the development agreement he has entered into with the christian community. If he shows you the agreement, then what he says is correct. You can check in the agreement whether there is any clause giving builder reversionary rights over the property. Also, you can verify why he has got such rights over the property. However, if he refuses to show you the agreement, then he is doubtful.

Daksha (Manager) 23 September 2009

Thanks a lot !!!!

Do you mean to say grantor of the estate i.e Christian community still has a right in the property? Do we need to check any thing else? Will it create any legal problem in future?

As per your suggestion we will ask for the Development agreement.

Secondly Builder is retainng all FSI rights with him in fufuture also. That means even if the society is formed the flat owners will not be eligible for the benefits in increase of FSI. Is it possible under the law? We have been told that many builders do that. Is is correct?