Home owners are frequently uncertain for redevelopment rights and issues for Ownership based property, Landlord based property and tenancy too. There are number of such properties that are under redevelopment that has several concerns.
Ownership based Property
In ownership type of re-development the benefits are owned by the member like the extra space and everything else because the apartment are owned by the home owners themselves. When the Society or building undergoes redevelopment, its cause of each home owner’s consent here. Permission, attending meeting held for redevelopment is must for every home owner for Ownership based Redevelopment.
Landlord based Property
‘Landlord’ means a person who receives or is authorized to receive rent of said premises be it his own or for the benefit of other person. For when a Landlord based property undergoes redevelopment, 67% rights are booked for the landlord. Therefore the extra 35% space that is usually offered during redevelopment is not offered here. Instead it is converted into ownership which truly turns out to be the same thing i.e. eitherto get it converted to ownership or receive 35% extra space.
Well the major difference in Ownership and Landlord based property is that building gets the benefit in title and the ownership building gets benefit in extra space.
Tenancy based property
‘Tenancy’ properties are those occupied by tenants or residents from another home owner for an agreed period of time, usually in exchange for rent and under a lease agreement. For redevelopment of tenancy property, 3 parties are involved for agreement-
i. The Owner
ii. The Tenant and
iii. Builder/ Contractor
The process to redevelopment of tenancy based property is same as redevelopment of Co-operative Housing Society. Just that as per laws, the landlord here has full rights to sell the land. Therefore the landlord makes a deal with the builder or contractor accordingly wherein the landlord takes away the profit on permanent basis, while the tenants who are in possession of respective apartments become the sole owner of the said apartment. The rights of landlord terminates here and there no rent or any kind of receipt claimed by landlord or any other party.