Selling Your Old Delhi Property? Read This Before You Make a Multi-Crore Mistake.

The Insider's Guide: Why you should go for the Builder Collaboration instead of selling the plot/Old Kothie and Why You Should Never Deal Directly

A Guide to Getting the Best Value Through a Collaboration Deal

If you own a valuable plot or an old kothi in a posh Delhi NCR colony, you're sitting on a goldmine. But how you mine that gold makes all the difference. Many owners think selling their property "as is" to a direct user is the best way. This is a big misconception and can lead to you losing crores in potential value.

Here’s a point-by-point breakdown of why a Builder Collaboration Deal, guided by a good mediator, is almost always the smarter choice.

1. The Problem with Selling "As Is" to a Direct User

Selling an old kothi directly to a family who wants to live in it (an "end-user") is extremely difficult. Here's why:

• The Ticket Size is Too Big: A 300 sq. yd. plot with an old kothi in South Delhi might cost upwards of ₹15 Crores. Very few individual families have that kind of budget to buy a single home for their own use.

• The "User" is an Emotional, Not a Practical Buyer: An end-user isn't just buying a property; they are buying their dream home. They will think about a hundred things:

  • "Is the Vastu right?"

  • "Will my family like the 'feel' of this house?"

  • "The layout is old-fashioned. We'll have to spend another ₹2 Crores and a year on renovations."

  • "The foundation seems weak. Is it safe?" This overthinking leads to endless delays and, most of the time, the deal falls through. They are looking for a perfect home, not a practical deal.

• Nobody Wants an Old Structure: The lifestyle has changed. People want modern amenities, stilt parking for their cars, elevators, and fresh construction. An old kothi, no matter how well-maintained, is a liability for a new buyer, not an asset.

The Simple Truth: Finding an end-user for an old kothi is like finding a needle in a haystack. For a builder, however, it's just business.

2. The Solution: The Builder Collaboration Deal

This is the smartest way to unlock your property's true value. Here’s how it works:

• The Basic Idea (Aapki Zameen, Builder ki Construction): You, the owner, provide the land. A builder comes in, bears all the construction costs, gets all the government approvals, and builds a brand new, multi-storey building (usually 4 floors with stilt parking and a basement).

• Unlocking Value Through Division: Instead of one massive, unsellable property, you now have multiple, brand-new, highly desirable builder floors. For example, a single ₹15 Crore kothi can be turned into four floors, each worth ₹5-₹6 Crores.

• The Distribution: The new floors are divided between you and the builder in a pre-decided ratio. This depends on the location and potential of the plot. Common deals include:

  • Owner's Share: 2 floors (e.g., Upper Ground and Second Floor) + some cash component.

  • Builder's Share: 2 floors (e.g., First Floor and Third Floor with Terrace).

• The Financial Win: You now own two brand-new floors. You can sell one for a large sum of cash and keep the other for your own use or to rent out for a steady income. Your net gain is significantly higher than what you would get from an "as is" sale.

3. Why You Should NEVER Deal Directly with a Builder

This is the most important advice we can give you. Dealing directly with a builder is a recipe for trouble.

• It's an Unequal Match: The builder is a professional who does these deals for a living. He knows all the tricks, the market rates for materials, the legal clauses, and the negotiation tactics. You, the owner, are likely doing this for the first time. It’s a professional vs. an amateur.

• Protecting Your Interests: A builder's primary interest is his profit. He might try to cut corners on construction quality, use cheaper fittings, or insert clauses in the agreement that favour him. Who will check the quality of steel being used? Who will ensure the specifications for tiles, woodwork, and sanitary fittings are exactly what was promised?

• The Deal is a almost a 2-Year Marriage: A collaboration deal is not a one-time transaction. It’s a long-term project that lasts from 12 to 24 months. Problems can arise at any stage – during demolition, construction, finishing, or getting the completion certificate. You need an expert on your side throughout this journey.

4. The Crucial Role of a Mediator (The Real Estate Consultant)

This is where a seasoned, professional mediator or real estate consultant becomes your most valuable asset.

• We Bridge the Gap: A good mediator acts as your representative. We understand the language of both the owner and the builder. We bring trustworthy, vetted builders to the table, saving you from unreliable players.

• We Negotiate for YOU: We fight for your best interests. This includes:

  • The Ratio: Getting you the best possible share (e.g., 50-50, 60-40) and a healthy cash component (called "cheque amount").

  • The Specifications: Finalizing every single detail in writing – from the brand of the elevator and bathroom taps to the quality of marble and the thickness of wires.

  • The Legal Agreement: Working with lawyers to draft a rock-solid Collaboration Agreement that protects you, including strict penalty clauses for any delays by the builder.

• We are Your Watchdog: Throughout the construction, we make regular site visits to ensure the builder is following the agreed-upon quality standards and timeline. If there is a problem, you call us, and we sort it out with the builder.

5. The Brokerage: An Investment in Peace of Mind, Not an Expense

We have seen many owners hesitate to pay brokerage to the mediator in collaboration deals. This is a penny-wise, pound-foolish approach.

• It's a Fee for Expertise, Not for an Introduction: The brokerage isn't just for finding a builder. It's for the 1.5-2 years of continuous guidance, negotiation, supervision, and problem-solving that we provide.

• Ensures Our Commitment: When you agree to a fair, pre-settled brokerage, you ensure that your mediator is fully committed to protecting your interests from start to finish.

• A Fair Payment Structure: We don’t ask for the full amount upfront. A professional mediator will always agree to a milestone-based payment plan. For example:

  • 25% at the time of signing the deal.

  • 25% when the first roof (lenter) is laid.

  • 25% when the final roof is laid.

  • 15% on completion of flooring and finishing.

  • 10% at the time of possession. This way, our payment is linked to the progress of your project.

Final Advice: Your property is the most valuable asset you own. Don't risk it by trying to save a small amount on professional fees. Instead of looking for that one-in-a-million "user," find a good, reputable mediator. Let them bring you a top-class collaboration deal that multiplies your wealth and gives you complete peace of mind.

By Delhi Plots Builder & Collaborators
Also Read :-
Construction Collaboration: How does it work?

Construction Collaboration ~ How does it work?

Your DDA Plot or Old Kothi is turned into a New Building without Spending a Rupee

Partner with trusted builders in Delhi. Get ready floors + sometimes cash, while the builder handles all costs.

How It Works:–

✔ You own the plot/kothi → Builder invests his money in construction.

✔ Builder constructs 4 floors + stilt (sometimes basement if main road   facing).

✔ Floors divided as per agreement (e.g., you keep Ground + First, builder keeps Second + Third).

✔ Extra cash may also be given, depending on market and location.

✔ MCD map approval and all paperwork done properly by the Builder.

Why Choose Us:–

✔ 100% focus on Construction Collaboration deals

✔ Network of serious Delhi builders who pay better brokerage

✔ Legal guidance + draft agreements

✔ Local expertise in Naraina Vihar, Paschim Vihar, Punjabi Bagh, Janakpuri, Pitampura, South Delhi, North Delhi and Gurgaon. 

Owner Benefits:–

✔ Gets a brand new house without spending anything

✔ No construction stress — builder manages it

✔ Secure your family’s floors + rental income

✔ Gain value if you want to sell later

we are trusted Delhi property consultants who bring owners and builders together for safe and profitable Construction Collaboration.

We are a network of Builders, Collaborators, NAREDCO Certified Realtors. Contact us for Construction Collaboration in Posh Colonies of Delhi NCR. Builder invests, gets map approval, builds. Owner gains new building, payments, enhanced property value & better rental incomes.  

Who are NAREDCO Certified Realtors?

The Certified Realtors are those who get Certification of dealing in properties after getting rigorous training by Real Estate Experts and Tycoons through

1) Guru Gobind Singh University

2) National Real Estate Development Council

3) Housing & Urban Development Corp.

4) Human Settlement Management Institute

Why the Certified Realtors should be opted while dealing in properties?

1) In Delhi there is no restriction for the Property Dealers to get any formal, proper training so even a Parchoon Wala starts dealing in properties, Who have no deep knowledge of legal, architectural, documentational aspects of properties, which may ultimately harm badly the people dealing with them.

2) In Delhi every other day there is a News that someone has been cheated by some fraudulent Property Dealer.

3) Many vital mistakes are committed by buyer and sellers both which cost them in lacs and crores and sometimes the whole property gets worthless.

DEALING WITH US MEANS DEALING WITH PROFESSIONALS

Contact Person : Tushar Arora

Google Location:  Delhi Plots Builders

📞 Call/Message/WhatsApp us at [9718725223/9818018725]

IMPORTANT PROPERTY ADVICES

 1. TSR (TITLE SEARCH REPORT)? OR  LSR (LEGAL SEARCH REPORT)? TSR or LSR?

What is this, and what is its importance in the sale-purchase of properties?
Just see.

TSR/LSR is the same report that a Lender Bank gets from a legal firm before sanctioning a property loan against a particular property. This legal firm makes a deep inquiry of that property in the concerned Sub-Registrar Office, Courts,  Revenue Office, MCD Office, etc. and prepares that report. Banks do not sanction the smallest loan without getting a TSR/LSR.

If a purchaser is not going to avail a bank loan, I would highly recommend that he must get TSR/LSR at his own expense before entering especially into the deal of an Agricultural Land or a property in a private colony.

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2. SALE ON GPA & AGREEMENT TO SELL? VALID?

The simple answer to the above question is NO.

But half of Delhi’s properties have been sold on GPA (General Power of Attorney) and Agreement to Sell (ATS).

Hire Purchase/ Lease-hold DDA properties, JJ Colony properties, Unapproved Colony properties, all have been/are being sold on GPA/ATS etc.

Though GPA with money transaction cannot be cancelled by the seller, and DDA also converts a property from leasehold/Hire-purchase to Freehold on the basis of GPA/ ATS yet GPA/ATS are not the perfect method of transferring a property.

The best way of transferring a property are Sale Deed, Gift Deed, Conveyance Deed, Relinquishment deed. All mandatorily registrable.

*Suraj Lamp Industries Vs. State of Haryana* 
Study the above-mentioned Landmark Judgement of Supreme Court to understand more.
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3. DIFFERENCE OF SALE DEED AND AGREEMENT TO SELL (ATS)

Sale Deed is not ATS and ATS is not Sale Deed.
But why am I writing this?

Because ATS has been/is being used as Sale Deed. Just check the language of an ATS that is being used in the file of GPA/ATS sale.  Only the Title is ATS but the whole language is picked up from a Sale Deed.  Absolutely illegal.

ATS is just a BAYANA AGREEMENT.  

In an ATS, complete transactions of money and property’s possession cannot be shown. If shown, then it is not ATS.  Complete transactions can be shown only via Sale Deed.  That is the difference. But this difference has been/ is ignored even by the Sub-Registrars and every day ATSs with language of Sale deed have been/are registered.
BEWARE!

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4. BROKERAGE OF PROPERTY DEALERS?
There is no law that governs brokerage of property dealers except the RERA Act-2017 and the Haryana Property Dealers Act-2008.

And these laws are not applicable everywhere in India. The 1% brokerage norm is market-driven, not law-driven.

In my view, this 1% brokerage is too low. Peanuts.

A broker shall have to sell hundreds of properties to gather money to buy a property of his own. Not practical. Not easy.

So my advice the Seller and purchasers is, that you please give appropriate brokerage to the Brokers. If you give peanuts, you shall hire the monkeys only.

5. AN UNAUTHORIZED PROPERTY IS UNAUTHORIZED IS UNAUTHORIZED

Electric/water meter installations, or utility bill payments, or property tax payments, or bank loans, or even SALE DEEDS can not make an unauthorized property an authorized one.

No.

Unauthorized property remains unauthorized UNTIL it is regularized or authorized by the exact concerned Govt. authority.

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6. TERRACE RIGHTS? OWNED BY TOP FLOORS? REALLY?

It is a common perception that Terrace/Roof rights belong to the Top Floors, especially in DDA FLATS. But is this right? The answer is NO.

Terraces/Roofs are common areas just like stairs, Lifts, Parkings, Entry Gates etc. I found clear Court-rulings in the case of DDA Flats. Here below is an example: —

Delhi High Court has stated in Bihari Lal Jalan, Wg. Cdr. Madan Lal …vs Dda And Ors.:–

“18. सामान्य क्षेत्र या सामान्य भाग सभी आवंटियों के लिए समान रहना चाहिए और किसी विशेष आवंटी या आवंटियों के समूह द्वारा उनके विशेष उपयोग के लिए इसे नहीं हड़पा जा सकता है। जहां तक शीर्ष मंजिल के मालिक द्वारा शीर्ष भागों के विशेष उपयोग का संबंध है, हमारा मानना है शीर्ष छत एक सामान्य हिस्सा है जैसा कि 1968 के डीडीए विनियमों में वर्णित है और इसका उपयोग केवल शीर्ष मंजिल के मालिक के लिए नहीं है।“

“18. Common areas or common portions must remain common to all the allottees and cannot be grabbed by any particular allottee or group of allottees for their exclusive use. Insofar as exclusive use of the top portions by the top floor owner is concerned, we feel that the top terrace is a common portion as described in the DDA Regulations of 1968 and the use of the same is not exclusive to the top floor owner.”

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7. RENT AGREEMENTS OF 22 MONTHS? UNREGISTERED? VALID?

While I have seen age-old, active, and reputed property dealers making unregistered Rent Agreements of 22 months or even longer period than 22 months but the simple answer to the above-question is *NO. Unregistered Rent Agreement of more than 11 months is invalid. Such a Rent agreement is not admissible in the Court of Law.

Here below are the laws applicable: —

Section 17 in The Registration Act, 1908:– Documents of which registration is compulsory:- (d) leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent;

Section 107 of TRANSFER OF  PROPERTY ACT:– Leases how made.—A lease of immoveable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument.

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8. PRECAUTION WHILE SELLING LEASEHOLD /HIRE-PURCHASE PROPERTY

Document Writers have stereotyped drafts, and they go on using them without going into finer distinctions.

I have seen more than once that even in the drafting of a leasehold or hire-purchase property, there are clauses stating that the property is free from all kinds of encumbrances, dues, bills and balances, etc.

No. Such clauses are very DANGEROUS for the Seller in such deals.

On the contrary, it must be mentioned that the property is NOT freehold and there are certain dues pending to DDA/GDA/HUDA etc. And further, it must be mentioned that these dues SHALL BE/SHALL NOT be cleared by the seller.

Thus the purchaser would never be able to claim any dues/balances/bills from the seller that had not been agreed upon.

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9. BENEFIT OF ARBITRATION CLAUSE IN AGREEMENTS

I prefer inserting Arbitration Clause in my Agreements (Sale Agreement. Rent Agreement etc.). It is somewhat like this:–

“In case of any dispute between the parties involved in this agreement, matter shall be referred to “Indian Council of Arbitration (ICA), Room No.112, 1st Floor, Federation House, Tansen Marg, New Delhi-110 001, Phone: 23719102; 23319849; 23350087; 23319760″. And the decision of the Arbirator appointed by ICA  shall be final.”

Arbitration is expensive and arbitration by ICA is even more expensive but it can save decades-long Court-fight and Lakhs of rupees.

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10. PUTTING E-MAIL IDs, PHONE NUMBERS/ PERMANENT ADDRESSES ETC. IN AGREEMENTS

In the very beginning of all kinds of Agreements, I prefer inserting AADHAR numbers, phone numbers, e-mail IDs, and permanent addresses (if any, apart from the present address) of all the people involved.

And I also insert a clause defining that “Notices” can be sent via electronic as well as conventional methods, if required.

WHY?

Because, in case of disputes, people go on avoiding Notices/Summons for years. This simple hack may help a lot in such cases. The courts may accept serving of the notices under such agreements.

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11. BENEFIT OF MAKING ALL THE MAJOR OCCUPANTS TENANTS

In “Tenants Section” of the Rent Agreements, usually only One main family member’s name is mentioned even if there are 5 or more Major family members.

I suggest a better option. In tenants section, put name of all the family members who are above 18 years of Age. Get signatures and thumbs of all of them on each paper.

Now all are equally responsible for each and every term of the agreement. Far better than One person.

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12. WHETHER SOCIETIES CAN TAKE ENTRY/ GATE FEE FROM THE NEW PURCHASERS?

 
Recently I had debate with one of our dealer brothers. He had the view that societies can charge the entry/Gate fee from the purchasers. I was not convinced. Because I think that society can only take the maintenance charges and nothing else.  None can stop the owner from selling and none can stop the new purchaser from entering the property.

Here is the result of my online RESEARCH:

The office of the Registrar Cooperative Societies (RCS) of Delhi Government has issued repeated directives which assert that the practice of charging entry fee is illegal and the president/ secretary of the housing society will be held responsible for this transgression.

The RCS directive states that “Violation of this Directive will be viewed seriously and the President / Secretary of the concerned Society would be held responsible jointly and individually. Action will be taken against the Society under the provisions of the Delhi Cooperative Societies Act and Delhi Cooperative Societies Rules for any such violation.”

In Smt. Kusum Lata Gupta And Ors. vs Registrar Cooperative Societies And … on 29 January, 2007, Delhi High Court passed the similar Verdict.  It was a WRIT filed on the basis of the same directives issued by the Registrar, Co-operative Societies on 14.12.1999 and 10.10.2001.

Result of my research is, no society can charge any kind of Gate fee/ Entry fee from the purchasers.

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13. ONE MONTH NOTICE CLAUSE IN RENT AGREEMENTS:–

Often, there is a clause in Rent agreements that the rented property can be vacated either by the tenant or the Owner after giving a one-month advance notice to the other.

This is a dangerous clause, especially for the tenants. This clause minimizes the period of the Rent Agreement from 11 or 22 months to One month only. The tenant lives under the impression that he is to live for 11/22 months but he forgets that the Owner can ask him to vacate any time after giving one-month Notice.

Not a very good thing for the tenants.

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14 *IS SALE DEED A PROOF OF TITLE?*

The answer is: *YES but not ALWAYS*. Here is the reply:–

The mere execution and registration of a sale deed by a registrar do not automatically prove the title to the property being sold. The registrar’s role is primarily procedural, ensuring the document is presented and executed according to the Registration Act, 1908, (Supreme Court of India-K. Gopi vs The Sub Registrar on 7 April, 2025). The registrar does not investigate or adjudicate title disputes, and the registration of a sale deed does not create new title or validate existing title, says Supreme Today AI (N.V.RAMANA Yadla Ramesh Naidu, S/o Demudu Naidu  Versus Sub-Registrar, Sabbavaram, Visakhapatnam, Visakhapatnam District- Decided On : 2008). The key is that the sale deed, when registered, acknowledges the transfer of rights, but not necessarily the validity of those rights.

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15*PROPERTY UNDER NBFC/ BANK LOAN MEANS PROPERTY IS OKAY? REALLY?*

The answer to the above question is:
*“NOT ALWAYS”*.

Banks/NBFCs have sanctioned loan on structures without any sanctioned building plans in Uttam Nagar, Paschim Puri etc. Just a few examples.

Whereas in Kalyan Sanstha Welfare Organisation against Union of India and Others, Hon’ Delhi HIGH COURT has directed as under:-

*’We hereby direct that henceforth Banks will check whether the loan sought for is for authorized structure or an unauthorized structure and the Banks will obtain an undertaking on an affidavit from the parties seeking such loans that the building is constructed as per sanctioned building plans. Banks shall also ensure that the sanctioned building plans are attached with the undertaking. Let necessary directions be issued in this regard either by the concerned Ministry of Banking or the Reserve Bank of India’.*

And this has been mentioned by RBI in Master Circular *”DBOD.No.DIR.(Exp).BC.04/08.12.01/2006-07″* dated July 1, 2006 on Housing Finance.

Banks too do violations. Beware!

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16* PART PROPERTY! IS IT A GOOD DEAL?*

Often I come across big properties for sale in Posh areas which are part of a bigger property. Are these good deals?

The simple answer is NO.
Why?

Because first, the purchaser shall face difficulty in getting building/map approved/regularized.

Second, the purchaser shall not get the sale deed/registry of the particular part of the property which he has purchased. The purchaser shall get registry/sale deed of an undivided share/ percentage in the entire property, a share which is not defined /divided/ particularly allocated.

Both of these factors might create problems, if not in the present but in the future. So such deals are not advisable.

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17* SALE DEED OF UNAUTHORISED FLOORS/FLATS HAVE BEEN STOPPED BY SUB-REGISTRARS. DOES THIS CAST ANY DIFFERENCE UPON THE MARKET (RATES?) OF SUCH PROPERTIES?*

*1.* The simple answer to this question is *NO*.

*2.* A property which is unauthorised is unauthorised. Even if a Sub-Registrar registers its sale deed, or a bank sanctions loan upon it, or BSES or any Electric company gives it an Electric meter an unauthorised property remains unauthorised.

*3.* Sale deed registration, Bank loan or installation of electric meter cannot convert an unauthorised property to authorised one.

*4.* Sub-Registrar, Banks, Electric Companies have no power to convert an unauthorised property to authorised. They have no power to do so.

*5.* So whether sub-registrar registers sale deed of unauthorised property or refuses to do so as it has been done nowadays, their should be no impact on such properties because such properties are unauthorised *ANYWAY*.

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18* HOW TO SIGN PROPERTY DOCUMENTS?*

We do sign and get signs every day on various documents. *What to learn in it?* Wait..Wait. Read the words written below, and you shall see a lot to reconsider: —

1. *Do not leave any space between the typed material and the signatures.* Why? Because this way none may be able to add anything mischievously in between afterwards.

2. Every page of a *document must be signed by everyone involved, including the witnesses.* Witnesses are witnesses to the whole document, not just to the last page; hence, they must also put their signs on each page.

3. Every person involved must also *put a clear thumb mark* on each page of the document.

4. If someone is just putting the *INITIALS* as his signs, ask him to put his proper signs. The main purpose of the signs is to get specimens of the handwriting. Hence, ask the people involved to write their names, fathers’ names, addresses, phone numbers, AADHAR numbers, etc. in their own handwriting at least on one page of every document.

5. The document must be signed in the *same language/script* in which the document has been typed. Why? Because this way the signatory might not dispute that he/she could not understand the language/terms/words of the document. Simple. Hence, if the document has been typed in English and the executant is signing in Hindi/Devnagri, it is better to STOP and ask the signatory to sign in English or get the document typed in Devnagri/Hindi. Hope you understand.

6. It is always better to *paste fresh passport photographs* of all the parties involved (even in unregistered documents). *Every person (including witnesses) must cross-sign his photograph with a Marker pen.* Why marker? Because ballpoint pens do not run on photo papers properly.

7. *Avoid gel or old-fashioned ink pens* for signing. Why? Because writings of such pens get spread if water is touched. Such writings also fade with the passage of time.

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19* SHOULD YOU BELIEVE BANKS BLINDLY IN PROPERTY MATTERS? NO. PLZ CHECK HERE-BELOW WHY?*

*1.* If the property is already mortagerd to bank, the purchasers become usually very compalcent and comfortable. They feel that everything shall be okay,

*2*. Sometimes purchaser gives the token amount or even bayana just on the statement of the seller that the property is mortgaged to the bank. Very bad. At least check the *LOD (List of Documents)* issued by the bank before giving a small token. And give bayana only after checking the original documents in the custody of the lender bank.

*3*. *In today’s New paper, there is a News that Bank lost the property documents mortgaged to it and Court ordered the bank to  pay the penalty.*

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20* PART PAYMENTS-RISKS- PRECUATIONS*

In the deal of property sales, part payment are become very common. Sometimes sellers ask for the part payment as a Right, Legal Right. But theoretically, I am against any kind of part payment. Part payments create a *DISBALANCE* in the deal. How? See below:—

*1.* On part payments, the purchaser gets only *the receipts*. Mostly no possession. No property documents. In case of any default from the seller’s side, the purchaser shall have to approach the court of law. The only way-out. There is no other pressure upon the seller.

*2.* And if the seller gives the property documents or possession to the purchaser on part-payment, thereafter in case of any default from purchaser’s side, the seller falls in risk. Now the seller is under more pressure because his documents/possession has been given to the purchaser.

*3.* So I believe that part-payments should be avoided as much as possible. And if the part payment is given, it should be added in Bayana/ Earnest Money. Bayana/Earnest money should be a very handsome amount (10 to 20 % of the deal amount) but part-payments should be zero or near to zero-as-possible.

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21* SECURITY/ LEASE DEALS~RISKS~PRECUATIONS*

Security/Lease deals are very popular among tenants. Numerous customers. A few deals. Great demand, limited supply. Why? Because tenants assume that they lose money (rent) in rental deals.  In Security deals, they give heavy security money to the Owner. They lose interest but earn rent. And as interest is very low in Banks, and getting interest is very risky in open market. But in this system of security deal, the money of tenants is safe because they have possession of the property under an agreement. And their money is returned as-it-is when they vacate the property.

*Considerable Point* :-

1. Before getting into such deals, original documents of the Owners must be seen to check the ownership of the Landlord . And this shall also prove that the Landlord has not mortgaged his property to bank/money lender.  In some cases, I have seen that the Landlord had mortgaged the property to the bank/money lender and also has given the property on Security. Very bad. In case of EMI default, the bank shall confiscate the property and the tenant shall lose his money. No way.

2. The tenant must check that the property whether the property is authorized or unauthorised. If unauthorised, it might get demolished or may be worthless in the open market.  Even if the property is authorised, market worth of the property must be checked. And security amount must be given according to the market only. I have seen that some tenants have given over-money and now, the landlord is unable to return that amount because he is unable to find  another tenant of that amount. Thus the previous tenant is stuck in such a deal.

3. The tenants consider that they are at benefit in Security deals because they are do not lose rent but they forget one very crucial point and that is INFLATION of money. Th tenants are not losing interest of their security money but they are losing worth of their money due to inflation also. The purchase power of a certain amount does not remain same with the passage of time. It decreases everyday due to inflation.

4. So in my view, financially seeing, security deal are not that much beneficial and there are many practical risks also as mentioned here above by me.

*SO BEWARE!*

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22* ROLE OF WITNESS– PRECUATIONS IN GETTING WITNESS*

In property disputes, Witness plays a very crucial role in the Court of Law. Especially in the matters of *WILL*. Biggest property can be transferred to a person on the basis of a WILL but only after the testimony of the witnesses. So do not consider the role of witnesses lightly and  do not get anyone casually for witnessing the property documents.

*PRECAUTIONS*

1. Witness should not be very old or sick.

2. Witness should not be any passerby or utterly unknown person. No.

3. Witness should not be *VERY CLOSE* family member of the people involved in property matters because the witness may turn hostile and might not appear in the Court in case of disputes or in some cases if such a person (wife/ husband/brother/sister/mother/father) appears might be considered biased by the Court and this witness may be treated as doubtful or null and void.

4. So who should be the witness? According to me, witness should be someone young and healthy. Witness should be someone *NEUTRAL* kinda person. Witness must be someone who may be easily called in the court of law, if required.

5. Witness must *SIGN & THUMBMARK* each and every page of the document (especially the unregistered document). 

6. Witness is witness of the whole document, not of the last page. Getting sign only the last page of the document by the witness is a wrong trend. Illogical. In the court of law, a paper/page which is not signed can be challenged easily.

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23* WHY I WANT MY FELLOW PROPERTY DEALERS TO BE MORE TRAINED?*

We property dealers, all of us, deal with each other often. I had some recent bad experiences dealing with my fellow dealers. I am citing here below 3 incidents. Not to belittle anyone. No. I love my fellow dealers. We all have to deal with each other. So I do.

*1.* In a deal of a MIG flat, the purchaser was from my side. My party (purchaser) had made the last part payment at the seller’s home; even then, the dealer from the seller’s side did not hand over the property documents and key to my purchaser. Why? Because he had the impression that these things are to be handed over before the sub-registrar. I tried to convince him that your party (seller) had been paid whatever was to be paid to him. Now give the possession and documents to my party. No, he could not understand. Everything was given to my party, but only in the sub-registrar office. Too awkward.

*2* In another deal, the water bill amount was not known to the seller at the time of the deal. At the time of full and final payment, it emerged as Rs. five lakhs. Now, we had a freshly written agreement that within the next 3 months the seller’s side shall get the bill discounted, if possible, and if not possible, even then they shall pay the bill.

But after the passage of those 3 months, the water bill was not paid. And the dealer from the seller’s side was idiotically supporting his party. Without my party’s (purchaser’s) willingness, they kept the bill payment on hold for 3 more months, and eventually they had to pay the water bill after 6 months with a penalty of Rs.50K. So idiotic.

*3* In one of my deals, the age-old dealer from Punjabi Bagh had the impression that the witness should sign on the last page of the document only. Why? Because he had seen this in the documents that were registered. I tried to explain that this is an unregistered Bayana Agreement and the witness is not witness to the last page but to the whole document consisting of 7 pages, so the witness should sign all the pages as the other parties are signing, but he was not driven by the logic. The debate got very heated.

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24* HOW TO MANAGE THE OVERSMART TENANTS*

*1.* Every tenant wants brand new premises and with it is natural that with usage it shall get somewhat damaged. But while vacating, if the property owner deducts  damage expenses, the tenant starts resisting. So ask the tenant and owner both to make videos of the premises and make it clear verbally and in writing that the damage expenses must be deducted from the security money.

*2.* And in Security/ Lease deals, the tenant wants the whole money in hand before vacating. Make it clear to the tenant orally and in writing that the security money shall be returned only after vacating the property. One hand Key to the Owner and the other hand security money to the  tenant.

*3.* Over-smart tenants usually stop paying rent just before vacating the premises so that the owner might not deduct money from the security amount. Put in writing that heavy penalty on the tenant if this mischief is done and make it verbally also clear.

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25* COMMON PUBLIC OPINION: PROPERTY DEALERS EARN HUGE MONEY BY DISHONEST MANNERS:- FACT CHECK

1. This image has been crafted by movies like “Khosla ka Ghosla”. First, most of the property dealers do not earn HUGE money. Most of the dealers earn very small money because brokerage is very low as compared to the sizes of deals and responsibilities. I remember till 1995, we were taking 2% brokerage. But now, even 1% brokerage is not given happily to the brokers.

Only the brokers, who are actually financers can earn some big money.  But sometimes even their judgements get failed and the money gets stuck.

2 Second, most of the property dealers are not DISHONEST. They are very honest. Because they know that it is a business of goodwill. And once, the goodwill is spoilt, it becomes very difficult to get any deal.

On the other hand, buyer/sellers have full right to ditch a property dealer any time without any mistake even after taking dealer’s services for months. Customers buy or sell a deal directly or via any dealer/agent anytime. Is not this dishonesty? This is. I my opinion.

3 Third, the fact is, property dealing is a unorganised, irregular field. Almost no laws, no rules, no regulations. No commitment from any side. Neither property dealer is regularized, not the customer. Hence any one misbehaves any time.

CONCLUSIONS:– Most or the property dealers are neither dishonest nor earn huge money.

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26* PROPERTY DEALERS ARE ILLETARTE. REALLY? FACT CHECK.*

This is half truth. 20-25 years back, most of the property dealers were uneducated or under-educated. Some of them were totally illiterates.

But present generation property dealers are mostly *NOT* illiterates and some of them are well educated.

But even then most of the property dealers are not legally and formally educated. For property  related documentations and laws, they are dependent on document writers who are usually *copy-pasters* and not legally updated.

And consequently, our property dealer friends make a lot of practical mistakes.

*My conclusion*:– Property dealers of the day are not illiterates but many of them lack legal and practical knowledge. And there is no formal education for property dealers so every one becomes a property dealer without knowing much of this business.

But they can/should learn a lot via YouTube videos and courses like offered by NAREDCO (National Real Estate Development Council).

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27* IS IT RIGHT TO GIVE/RENDER THE “ROOF RIGHTS” VIA REGIESTRY/SALE DEED OF A FLOOR/FLAT/APRTMENT IN DELHI ACCORDING TO BUILDING BYELAWS AND LAWS ?*

The reply is :

It is a debatable question and roof rights can be challenged very easily in the Court of Law.

Here-below are some relevant laws:–

*1* *Delhi Apartment Ownership Act, 1986- 3 (j) (ii)* Roof are among “common areas and facilities”.

*2* *RERA – Section 2(n) (iii)* of the RERA Act, 2016 states that terraces are common areas.

*3* *NDMC ACT-237 (2)* mandates that any construction, including alterations on the roof, requires prior sanction from the Chairperson.

*4* Even in *builder floors*, no construction is allowed after consuming th whole FAR according to the existing building bylaws.

*5* *Relevant Case Law*:-

https://indiankanoon.org/doc/1644883/

“18. Common areas or common portions must remain common to all the allottees and cannot be grabbed by any particular allottee or group of allottees for their exclusive use. Insofar as exclusive use of the top portions by the top floor owner is concerned, we feel that the top terrace is a common portion as described in the DDA Regulations of 1968 and the use of the same is not exclusive to the top floor owner.”
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28* PRE-RENTED DEALS – IMPORTANT POINT*

1. In such deals, the Lease Period/Lock-in Period is often highlighted …”n” years. 

2. It gives the impression as if the tenant shall certainly stay there for at least “n” years, whereas the reality is, not only Lease period is immaterial, but the Lock-in period is also almost practically immaterial because the tenant can vacate the property anytime, even before the lock-in period. No law can force the tenants to stay there against their will. 

3. The only practical remedy remains with the Landlord is to forfeit the security money.  Of Course, the Landlord can sue the tenant for vacating before the lock-in period, but that is quite an impractical solution. 

4. So in pre-rented deals, the Lock-in period or the Agreement period both are immaterial. The only material thing is the SECURITY DEPOSIT.  That must be noted.

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29* SECURITY DEALS … AN IMPORTANT POINT

1. If you are going to give your property on Security/ Mortgage, never execute a “Security Agreement” or “Mortgage Deed”.

2. Only execute the “Rent Agreement” and keep the “rent of property” and “Interest on the security amount” exactly equal so that the monthly transaction between you (the Landlord) and the tenant shall become ZERO.  But do mention the rent in the Agreement. That is a must. And that too more than Rs. 3500/-.

3. Why?  Because only in this way, your tenant will fall out of the protection DRC (Delhi Rent Control Act), and your property shall never fall in the clutches of the tenant.


PROPERTY ADVICE, CONSTRUCTION COLLABORATION ADVICE BY DELHI PLOTS BUILDERS & COLLABORATORS