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| Sr. No. | Question | Answer |
|---|---|---|
| 1 | After 79 A how long appointment of builder / developer is valid? Can Developers delay Development Agreement for more than a year? Does it make appointment of Developer invalid. If yes when? | 79A merely gives guidelines for "Selection" (not Appointment) of a Developer, whereas conditions about the "timely performance" of Developer must be very clearly specified in the Tender Document itself. On the selection of a Developer, a "Letter of Intent" (LOI) is issued to it. This LOI should also have a condition regarding the time frame in which a Development Agreement (DA) must be executed. The Developer is "Appointed" only after a DA has been executed. DA is a crucial document for a RD Project and must be executed. |
| 2 | After 79A Process the Redevelopment Committee has started giving access to developer. Allowed them to put up Developer's board as well as Allowed them to setup an office in society premises. They even accepted developers DD and put in society's account. Nothing was conveyed to members in advance. They are planning to get DA done from members even though Society Conveyance and Property card is not ready. (Nothing has been finalised yet - Only additional area to be given is committed by developer) Please guide. | 79A Process is followed only for "Selection" of a Developer. But its "Appointment" is confirmed only when a DA is executed. A Developer may be allowed to put up his board only after DA is executed. But, even then, there is no need to allow it to put up its office in the Society's premises until the premises are vacated. DA can be executed only after Conveyance is secured in the name of the Society. |
| 3 | Is there any timeline within which DA has to be signed? Are we within our rights to compel the Developer to get the plans cleared by the authotities before signing the DA? | Unless DA is executed, there is no concluded contract between the Society and Developer. Therefore, once the Commercial and Contractual terms and conditions are finalized, DA should be executed at the earliest. 79A Guidelines recommend that DA should be executed within 3 months of Selection of Developer. While this is possible, it is rarely seen to happen. Developer submits the plans to Statutory Authorities and secures approvals under a Power of Attorney (PoA) from the Society. Therefore, it cannot be expected it to do it unless DA is executed and PoA is issued to it. The common practice is to work simultaneously on DA and plans but execute the DA only after tentative floor plans are approved at the Society level. |
| 4 | If 79A process is followed for a standalone project and then it is decided to go for Cluster Development Scheme (CDS), is it necessary to start 79A process again? | 79A Process lays down Guidelines to initiate a Redevelopment Project, conduct it in a systematic manner and select a Developer by majority and in a transparent manner. After a Developer is selected, if the Society and Developer jointly decide to switch over to another Regulation on mutually agreed terms and if such a decision is taken by the General Body of the Society in a transparent manner, the Selection Process need not be repeated. |
| 5 | What is the factor to convert MOFA Carpet Area to RERA Carpet Area? My MOFA area entitlement was... And as per the plans received from the builder, I am getting RERA area of... | MOFA and RERA are different ways of expressing the Carpet Area of a flat depending on their definitions. As a fundamental difference, MOFA Carpet area excludes the area under internal walls, whereas RERA Carpet area includes it. Therefore, RERA area will measure more than MOFA area for the same flat. However, there is NO fixed factor to convert MOFA area into RERA area. For two different flats having the same MOFA area, the RERA areas can be different depending on internal planning, especially the internal walls. In very general terms, RERA area may be more than MOFA area by 4% to 6%. It can be misleading to use a factor to estimate the RERA area of your flat from its MOFA area. The best way would be to calculate or verify RERA area directly from the plan as per the definition of RERA. |
| 6 | I am the Secretary of a Society at Santacruz West, Mumbai. Our Builder has verbally informed that IOD is expected within a month and we should prepare for vacating. What are the precautions to be taken before vacating? ... R. T., Secretary, CHS, Santacruz, Mumbai | When you get the IOD, first you need to check is whether it covers the "Minimum Development Potential" as specified in your Development Agreement (DA) and whether any important compliances are pending. The other major things which must to be completed before vacating are: Execution of PAAA and Agreed payments & PDCs to existing members and Society. These are the main precautions to be taken before vacating existing flats. After all flats are vacated, there are some more precautions to be taken before the plot itself is handed over to the Developer for construction. They are: Securing Performance Guarantee (Bank Guarantee/ Lien on Security Flats), Agreed payments at that Stage, Getting Baseline Project Schedule from the Developer etc. For more info, Pl visit www.redevelopment.info > Pre-Construction Phase. |
| 7 | Our Society has selected a Builder and we are in the process of finalizing the Development Agreement. I want to know if the Rent, Corpus, Brokerage and shifting charges are to be paid to each member when he vacates his flat or when all members have vacated their flats. ... N. L., RDC Member, CHS, Girgaum, Mumbai | In fact, your terms of payment will depend upon the Developer's Final Commercial Offer based on which he was selected. Having said that, the commonly followed terms may be as under: 1. On each Member vacating his flat: - Entire Brokerage & Shifting Charges - First Year's Rent (lump sum for 12 months or PDCs as agreed) 2. On all Members vacating their flats: - Rental PDCs for the balance period (monthly, quarterly, half-yearly, yearly etc as agreed) - Corpus (part amount as agreed) - Balance Corpus (PDCs as agreed) |