Legal Question in Real Estate Law in India

Hi, I have a question regarding a few clauses in an agreement for a flat. If the following lines are there in the agreement is it ok ? As it is a little old, and on re-sale property. They are something like -

1) The Promoters are allowed to make suitable and necessary representation and changes in all Government, Semi Government or any other Departments to execute the scheme properly as they may deem fit. All activities done by Promoters will be binding on Unit Purchaser and he/she will not take any objection for the same agrees that he/she/they will not occupy the unit without the Completion Certificate. If he/she fails to act as per the same, then the Unit Purchaser alone is responsible for the same.

2) In future, if any TDR is available or if there is any increase in FSI up to Sale Deed, Promoters shall have the sole rights to claim utilize, develop & dispose of the same in a similar manner an Unit Purchaser will not ask for any compensation for the same and the Promoters are authorized to submit the plans and sign on behalf of Unit Purchaser if his/her signatures are required for this purpose.

3)The Unit Purchaser is also aware and consents and authorizes that, if the Promoters have not consumed the full FSI, the revised plans will be submitted as per their requirement, and they will be entitled to change the entire plans and layout. Also they may increase number of Units and floors in the building/s in which the Unit Purchaser has booked his Unit or any other building/s and / or construct upon the open space in the layout as per the requirement of the Promoters. The Promoters are allowed to change elevation and plans for any number of times till execution of the Declaration / Conveyance / Sale Deed/s of all buildings, including the building wherein the Unit Purchaser has booked his unit and the Unit Purchaser will not take any objection for the same. The Unit Purchaser hereby gives consent and authority to the Promoters for representing him/her for doing the same. The Purchaser consents and agrees for the promoters raising finance for and in the course of completing the development and construction work on the said property by creating charge/ mortgage thereof or any part there from, to any person/s or institutions as the Promoters may deem fit or require.

Please let me know about the above clauses. Are they standard part of all agreements or is there something wrong


Asked on 5/25/14, 12:31 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

26.05.2014

Dear Sir / Madam,

Under normal circumstances, a Devekoper acquires a land, constructs a building comprising apartments / flats therein, sells the flats to purchasers who form a co-operative housing society, and the Developer conveys the land in the name of the Society no sooner all the flats in the building have been sold out. In your case, the Promoter is doing anything and everything to retain control over the property without a word of its transfer to the Society. You would be as good as a tenant instead of an Owner in such a project with draconian clauses protecting the Promoter.

Regards,

Read more
Answered on 5/26/14, 4:46 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in India