You better know these things before opting for property redevelopment

Exchange offers are not new to businesses. Even real estate have exchange offer, in technical language it’s call redevelopment. When a builders offers to redevelop your old building and transform it into a brand new one, where you get a flat in return, at times even a larger area will all amenities, he makes a profit.

According to a story published in Business Standard today, it’s important that you know your rights, before you opt for redevelopment. For instance, the story says, “Redevelopment can take place only if 75 percent of the flat owners in a society agree to it. Redevelopment is feasible in case a society is in dire need of repairs but doesn’t have enough funds for it.”

[caption id=“attachment_797817” align=“alignleft” width=“380”] Reuters[/caption]

They also suggest that hiring a project management consultant (PMC) would ensure a smooth redevelopment process.

Other things to keep in mind according to the report is that it’s best to have attest five bids by builders, which needs to be short listed.

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It’s also best to avail the service of a lawyer, this would ensure that all the government rules and regulations is followed by the builder. And since, you are offering your current asset, the builder also needs to give you either an alternate accommodation or agree to pay you monthly rent.

The report said, “As a precautionary step, the developer is expected to give a bank guarantee of at least 20 per cent of the project cost. The money would be used in case the developer fails to complete the project on time.”