FAQs on Redevelopment of Housing Societies in Maharashtra
Q1: Why is redevelopment important in cities like Mumbai?
SRELJ: Redevelopment is vital because old buildings have a shelf-life and become unsafe or difficult to maintain after a point. In fully developed city centers like Mumbai, redevelopment is also the only way to generate new housing supply.
Q2: When should society members vacate their flats for redevelopment?
SRELJ: Members should vacate only after the developer has obtained the Intimation of Disapproval (IOD) approvals. This ensures clarity in timelines and reduces the financial burden of rentals on the developer.
Q3: What should be checked regarding handover timelines?
SRELJ: The agreement must clearly define handover timelines with a specific date for project completion. This helps protect members from unnecessary delays.
Q4: What reimbursement should society members expect during redevelopment?
SRELJ: Members are entitled to monthly rental payments equivalent to prevailing rents in the locality, along with reimbursement for packers and movers and basic interior changes in temporary rented homes.
Q5: Why is a rental escalation clause important?
SRELJ: Since rentals typically increase by 10% every year in Mumbai, the redevelopment agreement should clearly state escalation terms to protect members from financial stress during prolonged redevelopment.
Q6: Will maintenance charges increase after redevelopment?
SRELJ: Yes, maintenance charges usually rise due to additional amenities such as gyms, swimming pools, landscaped gardens, or covered parking. Members should negotiate for only essential amenities and ask for maintenance-free periods or deposits by the developer.
Q7: What should be included in the delay clause?
SRELJ: The agreement must specify the construction timeframe, handover date, and penalties if the developer delays possession. Penalties can be monetary compensation or contract termination terms linked to the stage of construction.
Q8: Who should bear the maintenance-free period cost?
SRELJ: Developers often agree to bear maintenance charges for a defined period. This amount should ideally be deposited in a separate account before the developer is allowed to sell surplus flats.
Q9: What safeguards should be taken while signing the redevelopment agreement?
SRELJ: Societies should ensure maximum clarity in the agreement, covering timelines, penalties, reimbursements, rental escalation, and maintenance costs. This protects members from future disputes.
