Key Clauses for Redevelopment Agreement:-
1. The completion period of Redevelopment shall be of not more than two years and in special cases not more than 3 years in case of any exigencies.
2. The Developer should give Bank Guarantee of 20% price of Redevelopment Project.
3. The Developer should try to give alternate accommodation to the members in the same area till the Redevelopment Project is complete. Otherwise he will pay monthly rent and Deposit (equivalent to the prevalent rate of rentals in the same vicinity including the yearly rent escalation) agreeable to members or make available Transit Camps.
4. In case this advance rental is dishonoured, the society has the right to prevent the builder from either selling or allowing any new flat purchaser to occupy their respective flats.
5. The Agreement should be registered under Registration Act 1908.
6. All the new members shall be admitted in the society after completion of the Redevelopment Project and after approval of General Body Meeting of the society only.
7. The Agreement should have specific mention of the agreed Carpet Area.
8. The Development rights given to the Developer will be non-transferable.
9. The flat owners will vacate their flats only after receipt of all the legal permissions for the Redevelopment work and those in possession of their flats will not lose their rights.
10. Agreement between contractor, Architect and society should have a condition that disputes, if any, on the Redevelopment work shall be settled u/s Rule No. 91 of the Rules.
11. After receipt of the Occupation Certificate for the Redeveloped building the distribution of the flats should be preferably made in accordance to the prevailing arrangement of present floors. In case when the Allotment of flats is required to be made by lots, only after completion of the building the Developer should make available the lottery system after completion of the Redevelopment Project. The developer should arrange for draw of lots for the distribution of flats in presence of Registrar’s representative and video shooting of the complete process will be made.
12. No member of the Committee or Office bearer shall be a Developer and or his relative.
13. The Building Plans which are approved by the Municipal Corporation / Competent Authority shall be again placed before the General Body Meeting for information. A member wishing to have a copy of the approved Documents can get the same on his written application. The Committee is bound to issue the information on charging a reasonable fee.
14. The housing society member need to calculate and assess the financial implication keeping in mind the interest of all members on account of any increase in the maintenance charges for the additional facilities / amenities builder may provide. Depending upon the average financial capacity member should ask the developer if he is willing to bear the maintenance charges which would otherwise have been borne by the society members. In the case of such an arrangement the society should ask the developer to deposit the amount in a separate account prior to giving him permission to sell the surplus flats in the newly redevelopment building.
15. Ensure to add appropriate penalties / damages in case the project is delayed beyond the agreed period including but not limited to payment of rental and other charges to the members.