When the future of your home is at stake, the decision to redevelop your property can often be a tough one. When your society and you as a collective consider redevelopment, here are a few important challenges to consider:
Society Members’ Approval
Since the process of redevelopment begins with the reaching of a consensus amongst society members, this will likely be your first challenge. Conflicting attitudes amongst them can lead to disputes which will ultimately lead to delays in the possession of your new home.
Insufficient or Incomplete Paperwork
Most buildings that are considering redevelopment are very old with equally old paperwork. The process to get the correct documents ready during the feasibility stage of the project can be a difficult and time-consuming endeavor.
Finding the Right Developer
Finding a developer whose priorities align with those of your society members can be an arduous task. Without the right developer, you may face issues like stalling of the project due to insufficient funds, trouble with government authorities due to incorrect proceedings, poor project documentation and in worst case scenarios – abandonment of the project mid-way.
Non-Vacating Members
Dealing with non-vacating society members, can be a major roadblock during the demolition and re-construction stages. Educating society members about the importance of timely action is key.
Incomplete Approval before Demolition
Once you’ve signed the development agreement for your project, the developer will begin taking steps to apply for the relevant approvals from civic bodies for demolition. If anything remains incomplete in this process, demolition cannot take place and the project cannot move forward until that is remedied.
Not Clarifying Financial Closure Details
The vast majority of stalled redevelopment projects are due to financial mismanagement. Going through a detailed plan for how the developer plans on securing sufficient financing for the project before you vacate the property is essential due diligence.
Unreasonable Commercial Expectations
Understanding the current and future state of the real estate market plays a crucial role in the planning of a redevelopment project. Both the developer and the homeowner need to have realistic expectations on the type of returns the project will bring. Building a sellable project should be a priority, otherwise you may end up with unsold houses.
Legal Hurdles
There might be legal hurdles that can impact your progress. For example – not following 79A of the Maharashtra Co-operative Societies Act, 1960, incorrect legal advice, improperly filed documentation, and an inadequate Development Agreement. The best way to avoid these issues is to seek legal counsel that has experience with redevelopment projects.
Changing Government Policies
The government regularly makes changes to legislation and Development Control Regulations that can affect your project and its profitability. Having a Development Agreement that lacks provisions for such changes can result in disputes and stalling.
Timely Completion and Possession
A shortage of skilled and unskilled manpower, scarcity of raw materials, and delays in the procurement of approvals and certificates are just a few of the obstacles your Developer might face that often cannot be helped. Issues like these throughout the redevelopment process may lead to your possession date getting pushed back.
From getting approvals, to delays in construction and possession, there may be many hurdles in your redevelopment journey. While these challenges may seem daunting, redevelopment is an incredibly rewarding endeavor. By making sure you stay informed and do your due diligence, you will end up with a great new place to call home!