My father has a shared plot in a suburb in Mumbai along with one of my uncles and my other cousin, each having an equal 1/3rd share in the plot. The plot has a building on it where we have our houses -3 floors, each floor for each of the shareholder. Relations between my father and my other uncle have been sour for the last 30 yrs.

Most plot-owners in our locality have now sold their plots to builders who demolish the existing structure and construct a high-rise on the plot -during the construction time, the old house owners are given rental places (with rent paid by the builder for 2-3 yrs) and when the high-rise is done, the original share-holders are given whatever was decided.

I have 3 questions now:

1. My other uncle is refusing to let this happen -a couple of builders had approached us in the past in which they said they'll take ours + neighboring plot (their owner has also agreed finally) and construct a combined high-rise giving each one of us a full floor in the new combined high-rise. But seems my uncle is either thinking something sinister or just being non-cooperative or plain greedy. My question is: when 2 out of 3 shareholders of the plot agree and the 3rd disagrees, what can be done? Can one shareholder hold the others hostage like this? There must be some solution -negotiation has failed and we are not even on talking terms. Can mediation help? What kind of?

2. What happens if the existing structure where we live currently goes down due to say earthquake or when it gets really old -what we'll end up getting is just the plot. In such a case, if say one of the shareholder disagrees to give NOC to other shareholders of the plot to construct new structure, what will the other 2 do? Sit on the road with no place to live? Can they dissolve the plot agreement? How is it done and can it be done now for my 1st question?

3. What if we sell or give our floor on rent and move to another place? We'll still have plot ownership but I am not sure what kind of agreement will be in place if we sell our floor v/s just giving on rent. If we just give our floor on rent, we will continue to be shareholders in not just the plot but also the existing building. If we sell our floor, we will just be shareholders of the plot and in that case, if a builder buys our plot and constructs a high-rise, it might be the new owner of our floor who would get the most of it, right? Is my understanding correct? The thing is: we don't want to live together with our uncle (though we are on separate floors) but at the same time, we don't want to lose the benefits that might come with a high-rise on our plot.

Thanks in advance!
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  • Hello

    At the outset, it will be a dream if a person or his / her family owns a plot in Mumbai. Despite being bought up in Bombay, many are struggling for a decent house.

    Reading your query, you will need expert legal advice & take second opinion if found necessary. There would be a soft handling / family touch which would be needed so that all the 3 owners of the plot come together for mutual benefit and gains

    My thoughts on your query are as under
    1) and 2) Intervention or mediation by family members would be the best option. Try to convince him that the current opportunity of going together with the builder would be beneficial for all. It depends on how your father and others have purchased / inherited the plot (some agreement or land record can throw light on the rights of the family members)

    A recent Supreme Court ruling of Jan 2014 makes 6 metres wide open space skirting all buildings is mandatory and 10-25% of the plot area be kept open to sky. This actually reduces the plot size and forces the builder to go vertical and in higher cost of construction. If 2 plots are merged, then the cost of construction is lower, although there is a chance that if the plot size is above some limit, a port will go to BMC for a garden or public amenity.

    Legally a owner can demand physical partition of the plot, but since a structure is standing, it would be difficult to divide. Better consult a property expert lawyer.

    3) In Mumbai, when a person buys a house, he buys not only the physical house, but also ensures that he has a benefit in the underlying plot (directly as owner or indirectly through housing society). Premium is paid for the possible appreciation of the plot and future redevelopment.

    I do not think that any person will just buy the floor from you without obtaining a right in the plot. He would buy it mainly for the land value. Giving it on 'Leave & Licence' basis for 11 months (with extension) can help you earn rental income, if you are planning to shift to amother location.

    Personally if your family is not in urgent need of money, give the house on 'Leave and Licence' preferably to a simple salaried person (who is not connected with politicians / builders). Periodically visit your house to verify that nothing suspicious is happening. It would also be advisable for your father to give a public notice in local news papers that he is co-owner of the plot and no deal should be entered in without his consent / approval.

    Regards
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  • you and your one uncle can take take their share of the value of the plot from the builder and buy a flat in a place of your choice, invest the rest and lead a peaceful life. However in the given circumstances of dispute overall you will have to factor in a discount on the market value due to the builder having to deal with the non cooperative uncle of yours.

    The best bet is the first one suggested above
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  • selling the flat to a third person would create a fourth party to be taken care of by the builder in the event of redevelopment. such scenario is Best avoided
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  • Originally Posted by bazoomistry
    selling the flat to a third person would create a fourth party to be taken care of by the builder in the event of redevelopment. such scenario is Best avoided


    bazoomistry can you please explain what is "third party Interest"? where one can read about that? Reason for asking is

    It is related to open PLOT (no construction). The plot was owned by A. A sold the plot to B. B sold the plot to C about 15 years back. C has registration of the plot on his name and mutation (revenue records) of plot on his name. C did not construct on the plot. C stays in City the plot is in village. C went to construct a house on the Plot but sons of A are saying they have KABJA on Plot. what should be done by C???
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  • Originally Posted by GeeKaay
    Hello

    At the outset, it will be a dream if a person or his / her family owns a plot in Mumbai. Despite being bought up in Bombay, many are struggling for a decent house.

    Reading your query, you will need expert legal advice & take second opinion if found necessary. There would be a soft handling / family touch which would be needed so that all the 3 owners of the plot come together for mutual benefit and gains

    My thoughts on your query are as under
    1) and 2) Intervention or mediation by family members would be the best option. Try to convince him that the current opportunity of going together with the builder would be beneficial for all. It depends on how your father and others have purchased / inherited the plot (some agreement or land record can throw light on the rights of the family members)

    A recent Supreme Court ruling of Jan 2014 makes 6 metres wide open space skirting all buildings is mandatory and 10-25% of the plot area be kept open to sky. This actually reduces the plot size and forces the builder to go vertical and in higher cost of construction. If 2 plots are merged, then the cost of construction is lower, although there is a chance that if the plot size is above some limit, a port will go to BMC for a garden or public amenity.

    Legally a owner can demand physical partition of the plot, but since a structure is standing, it would be difficult to divide. Better consult a property expert lawyer.

    3) In Mumbai, when a person buys a house, he buys not only the physical house, but also ensures that he has a benefit in the underlying plot (directly as owner or indirectly through housing society). Premium is paid for the possible appreciation of the plot and future redevelopment.

    I do not think that any person will just buy the floor from you without obtaining a right in the plot. He would buy it mainly for the land value. Giving it on 'Leave & Licence' basis for 11 months (with extension) can help you earn rental income, if you are planning to shift to amother location.

    Personally if your family is not in urgent need of money, give the house on 'Leave and Licence' preferably to a simple salaried person (who is not connected with politicians / builders). Periodically visit your house to verify that nothing suspicious is happening. It would also be advisable for your father to give a public notice in local news papers that he is co-owner of the plot and no deal should be entered in without his consent / approval.

    Regards


    Thanks bazoomistry for your detailed responses.

    My dad is a bit conservative and isn't ready to give our house on lease ... he's old and he fears the tenant might usurp our house.

    We are adopting a wait and watch approach. We've tried subtle ways for mediation with the non cooperative entity (NCE for short, don't even want to address him as 'uncle') through extended family but of no avail, as of now.

    What do you think of post-May 2014 scenario with respect to RE rates? If a right (capitalist) govt. comes, $ will surely go down, inflation might go down, so will RE prices also go down?
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