Housing Society Problems and Solutions: Navigating Redevelopment and Property Rights
Shirish Shanbhag 10 October 2024
This week, I will address various pressing issues faced by cooperative housing society (CHS/Society) members, ranging from redevelopment disputes to challenges with inheritance and legal rights. Redevelopment continues to be a hot topic, with members often navigating complex situations involving builders, legal documents and the proper allocation of additional space. This week's questions shed light on some of the common difficulties Society members encounter, especially when builders try to deny rightful claims.
 
I will also touch on inheritance and the legal process required to transfer property rights. Many housing society members, especially after the passing of loved ones, are left in the dark about how to ensure a smooth transition of property ownership. Whether it is dealing with a builder who refuses to recognise legal documents or a housing society that has delayed action, this week, I will offer practical advice on how to resolve these challenges while safeguarding your rights.
 
Combined Redevelopment with Neighbouring Society
Question: Our Society passed a resolution for redevelopment in the extraordinary general meeting (EGM) to first evaluate bidders based on legal aspects, any litigation, balance sheets, etc. We agreed to shortlist three bidders from seven after this evaluation. However, the neighbouring Society is influencing some of our members to push for joint redevelopment. As per our resolution, we can consider joint redevelopment only after evaluating and shortlisting the three bidders for our project. As the secretary, I cannot violate Bye-Law 79/A or the resolution passed in the SGM. Please guide me on how to proceed.
 
Answer: I recommend proceeding with your Society's redevelopment independently and selecting a builder based on the criteria you have set. Involving an adjoining society in the redevelopment can lead to complications, such as disputes over floor space index (FSI) usage, parking allocation and other matters. It is better to avoid such conflicts and stick to the resolution your Society has already passed.
 
Inclusion of Terrace Area in Redevelopment
Question:  Our building is going for redevelopment and the builder has been finalised. The builder has offered a 20% premium on the existing carpet area. My flat includes an open terrace of 106 sqft built-up area. This terrace is mentioned in several documents, including the search report obtained when I purchased the flat, the registered agreement for the sale of the flat, Index-2, flat drawings attached to the agreement for sale and the approved plan signed by the town planning department.
 
However, the builder refuses to recognise my claim on the terrace, stating verbally that it is illegal and refusing to include it in the redevelopment. I am a 70-year-old senior citizen and do not have the energy to pursue legal action. The builder is backed by a local MLA who is also a partner in the project. During our discussions, the builder claimed that the registering authority does not check the area mentioned in the agreement. How can I get my rightful area?
 
Answer: The builder is unfairly denying you the correct redeveloped area. As per standard redevelopment norms, you should be receiving 35% extra carpet area, not just 20%. Your documentation is in perfect order and the open terrace area should be counted as part of your flat's total carpet area. 
 
If the builder continues to refuse to include it, I advise you to hire an experienced advocate and file a civil suit, making the town planning department of your local municipality a party to the suit. This will strengthen your case and ensure your terrace is considered for redevelopment.
 
Inordinate Delay in Transfer of Flat 
Question: My father and mother passed away nearly two years ago. My brother and I (we are the only two siblings) submitted the necessary application along with the required documents to our Society a year ago. We are the registered nominees. Our parents also made a joint Will stating that their properties should be equally shared between us after their death. The Will is witnessed by two individuals, one of whom is a member of our CHS. Since we have not received any communication from the CHS in the past year, would it be helpful to challenge the matter before the deputy registrar of CHS in Thane?
 
Answer: In this situation, the best course of action would be to get your parents' registered Will probated by the Thane district court. This will legally confirm the validity of the Will and facilitate the transfer of your parents' flat to you and your brother. You should hire a competent lawyer who specialises in testamentary matters in the Thane district court. The overall cost for getting a probate could range between Rs1 lakh to Rs1.25 lakh, including a court fee of up to Rs75,000 and advocate fees, which may vary from Rs25,000 to Rs50,000. The process may take anywhere from three months to a year; but, once you have the probate, the flat can be transferred into both your names.
 
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever. 
 
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
 
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
 
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