CRITICAL ROLE OF TITLE CLEARANCE IN REDEVELOPMENT
In a redevelopment project, it is highly recommended to verify and clear the property’s title first before formally deciding on and appointing a builder. While a builder can be tentatively selected (e.g., via a Letter of Intent or a resolution in a Special General Body Meeting), formalizing the development agreement and starting the actual project activities (like demolition or construction) without a clear and marketable title creates significant legal and financial risks. Why Title Clearance is Crucial First Legal Requirement: For a builder to obtain necessary municipal approvals and a Commencement Certificate (CC) to begin construction, the society must generally have a clear and marketable title to the land. This is often achieved through a registered conveyance deed or “deemed conveyance”. Risk Mitigation: Unclear land titles are a common source of delays and litigation in redevelopment projects. Title disputes can halt the project indefinitely, leaving both the builder and the society members in a precarious situation (e.g., displaced and without their new homes). Financial Safeguard: A clear title ensures the project is legally sound and makes it easier for the builder to secure project financing and for future buyers in the free-sale component to get home loans. This financial stability is a key factor in a project’s success. Transparency and Trust: Conducting thorough legal due diligence, including title verification, at an early stage demonstrates transparency and helps build trust between the society members and the chosen developer. Recommended Order of Operations (General Steps) Initial Decisions & Structural Audit: The society discusses redevelopment and conducts a structural audit to determine feasibility. Appoint Professionals: An architect/Project Management Consultant (PMC) and a legal advisor are appointed to guide the process. Title Verification/Conveyance: The society’s legal team conducts comprehensive title verification and works to obtain a clear conveyance deed or deemed conveyance for the property. Builder Selection: Once the title is confirmed, a transparent tendering process is used to select a reputable builder with a proven track record, financial stability, and relevant experience. Formal Agreements: A detailed Development Agreement (DA) and individual Permanent Alternate Accommodation Agreements (PAAA) are meticulously drafted, vetted by legal experts, and registered. Project Commencement: The builder then seeks the required approvals (IOD, CC, etc.) and begins construction. Prioritizing title clearance helps safeguard the interests of all stakeholders and ensures a smoother, legally compliant redevelopment process. HOW FAR A CERTIFICATE OF TITLE BY A SOLICITOR/ ADVOCATE IS SIGNIFICANT? In Ramniklal Tulsidas Kotak And Others vs Varsha Builders And Others on 26 August, 1991 Equivalent citations: AIR1992BOM62, AIR 1992 BOMBAY 62, (1993) MAH LJ 323, (1992) 2 BANKCAS 441, (1992) 2 BOM CR 492 “(1) A Certificate of Title need not necessarily be unconditional or unqualified. It can be qualified to the limited extent of the implied statutory exception contained in Section 3(2)(b) of the Maharashtra Ownerships Flats Act, 1963, as interpreted above. The Format of the Certificate of Title prescribed by the rules is mandatory, subject only to a limited scope for adaptability as explained in the judgment. A qualified certificate of title must furnish all relevant information as set out in paragraph 19 of this judgment. (2) The Promoter must […]
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MUSLIM LAW OF SUCCESSION AND WAKF
WHAT IS WAKF ? IF WAKF IS GIFT BY A MUSLIM FOR BENEFIT OF ISLAM CAN BOARD STAKE CLAIM ON THIRD PARTY PROPERTY INCLUDING TEMPLES? A Muslim personal law was passed in 1937 applicable to the Muslim Personal Law (Shariat) to Muslims. The words “in the Provinces of India” omitted by the Adaptation of Laws Order, 1950. So even after partition and independence the Act remains enforceable. At the time of partition there were two establishments were formed one Wakf Board which is mainly for management of gifted property for betterment of Islam and those who follow Islamic faith. Another was law of Evacuee Property. Administration of Evacuee property Act 1950 and Displaced persons (Compensation & Rehabilitation) Act, 1954 and Evacuee Interest (Separation) Act, 1951. The Evacuee property Cell is dealing with Evacuee properties situated in Delhi. The Evacuee property means the property which was left by the Muslims community during the partition of the country in 1947. The Evacuee Property Cell is responsible for the management and disposal of the Evacuee Property situated in Delhi. The purpose of the Act as enacted is enunciated in Section 2 of the Act. It reads as under: “Notwithstanding any custom or usage to the contrary, in all questions (save questions relating to agricultural land) regarding intestate succession, special property of females, including personal properly inherited or obtained under contract or gift or any other provision of Personal Law. marriage, dissolution of marriage, including talaq, ila, zihar, lian, khula and mubaraat, maintenance, dower, guardianship, gifts, trusts and trust properties, and wakfs (other than charities and charitable institutions and charitable and religious endowments) the rule of decision in cases where the parties are Muslims shall be the Muslim Personal Law (Shariat).” Since we are now discussing Wakf we will concentrate on the said word and provisions in the Act of succession for Muslims. On 21st May 1954 an Act was passed namely Wakf Act 1954, However there is no definition of term Wakf. But it is define in common parlance खुदा के नाम पर अर्पित वस्तु। Its donation to almighty.But the law and action speaks contrary thereto. Now let us see the definition given under this Act. 3.Definitions. In this Act, unless the context otherwise requires,– (a)”beneficiary” means a person or object for whose benefit a wakf is created and includes religious, pious and charitable objects and any other objects of public utility 3*[sanctioned by he Muslim law]; (b) “benefit” does not include any benefit which a mutawalli is entitled to claim solely by reason of his being such mutawalli; (c) “Board” means a Board of Wakfs established under. Now how it started in 1954 after independence? The 1954 Act provides for Survey. Section 4 deals with the same. 4.Preliminary survey of wakfs. (1) The State Government may, by notification in the Official Gazette, appoint for the State a Commissioner of Wakfs and as many additional or assistant commissioners of wakfs as may be necessary for the purpose of making a survey of wakf properties existing in the State at the date of the commencement of this Act. (2) All additional and assistant commissioners […]
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