I am one of the six owners of a Tamil Nadu Housing Board HIG flat in Anna Nagar (Western Extn.) in a separate block .The flats are 32-years-old and in a dilapidated condition. Therefore, with the consensus of all the owners we have entered into a Joint Development Agreement (JDA) with a reputed builder under 60:40 ratio. We have an orientation Sketch from the TNHB, a joint patta from the Tahsildar, a resolution from the Association for block-wise redevelopment and all approvals from the CMDA and Corporation.
In the JDA, it was initially mentioned by the developer that a builders/construction agreement will be given mandatorily to the joint owners apart from executing the same for the other four prospective buyers. But now the developer states that the Agreement is neither mandatory nor required for the joint owners as the monetary consideration value is equalised with the value of the sale of undivided share of land (UDS) (i.e.) 40 per cent given by all the six owners.
Please clarify whether a joint owner in a joint development needs a construction/builder agreement, and if it is required, should it be registered? What is the value to be declared for registration? Our JDA executed in March 2015 is not registered as there is no value for UDS and a proposed new flat. Is it correct?
Chennai
A proper and registered document i.e., a construction agreement for the new apartment which is being constructed for the erstwhile owners is necessary to establish title. The aspects relating to demolition of the old building, redevelopment, monetary consideration and equalisation of the same can be inferred from the unregistered JDA. The said JDA should clearly state the undivided share of land retained by the erstwhile owners and the new flat agreed to be constructed for them. The stamp duty and registration charges for the construction agreement would be 2 per cent of the cost/value of construction and the same has to be borne by the promoter or the erstwhile owners based on the understanding recorded in the JDA.
