3 tips to negotiate with Builder | Housing society redevelopment

Summary

This video offers valuable insights into navigating redevelopment negotiations for flat purchasers. It emphasizes the importance of vigilance, strategic emotional manipulation, and the need for specific legal clauses in redevelopment agreements to protect buyers' interests. The speaker advises on tactics like creating confusion among builders, setting clear project timelines, and ensuring financial viability through upfront payments. With humor and practical advice, the script equips flat purchasers with strategies to secure favorable outcomes, avoid common pitfalls, and hold builders accountable in the redevelopment process.

Takeaways

• 😀 Vigilance is crucial for flat purchasers; don't rely solely on committee members or secretaries as they may be influenced by builders.
• 😀 Builders often present a charming demeanor during negotiations but change their approach once possession is given. Always be cautious after signing agreements.
• 😀 In redevelopment, having multiple committees with varied approaches during negotiations can confuse builders and ensure fair treatment.
• 😀 During negotiations with builders, female committee members should take the lead in discussing issues like storage space to leverage emotional influence.
• 😀 Never trust a builder's claims without verification, especially about height, ventilation, or other construction details. Always scrutinize the terms.
• 😀 It is essential to include a watertight termination clause in the redevelopment agreement to protect flat purchasers from delays or poor construction quality.
• 😀 Ensure that the agreement includes clauses about rent increases and possession deadlines, with clear terms for extensions if necessary.
• 😀 Always appoint an arbitrator with the required authority (e.g., a retired high court judge) to handle disputes, ensuring fairness and professionalism.
• 😀 Ensure the builder pays the necessary fees upfront (such as payments to the corporation) to prevent project delays due to financial issues.
• 😀 The builder should always provide a clear project timeline (e.g., through a bar chart) and stick to it. Do not grant extended periods without monitoring.
• 😀 While negotiating area percentages, ensure that the builder's proposal is reasonable. Allowing the builder to make some profit is key to ensuring project completion.

Q & A

Why should flat purchasers be vigilant when dealing with builders and committee members?

Flat purchasers should be vigilant because committee members and secretaries can sometimes be influenced or manipulated by builders, making decisions that may not always align with the flat purchasers' best interests. Builders may use emotional tactics or personal gains to sway opinions, so it is essential to stay alert and not depend entirely on others.

What is the role of female committee members during redevelopment negotiations?

Female committee members are encouraged to take the lead during redevelopment negotiations to make emotional appeals, especially when interacting with builders. The idea is to highlight that women are the ones most affected by living conditions and, therefore, should have a stronger voice in negotiations.

What are the critical clauses that should be included in a redevelopment agreement?

A redevelopment agreement should include a termination clause and a grace period clause. The termination clause ensures that the builder is held accountable for delays or failure to deliver possession on time, while the grace period clause outlines rent increases and penalties if the project is delayed further.

Why is it important to have a clear exit strategy in the redevelopment agreement?

Having a clear exit strategy ensures that flat purchasers are not left in a difficult situation if the builder fails to meet deadlines or deliver the property as promised. This includes having an exit clause that specifies penalties, such as rent increases or the ability to terminate the agreement if necessary.

What is the suggested approach when discussing the financial stability of a builder?

Flat purchasers should ensure that the builder has the financial capacity to complete the project. This includes asking the builder to make upfront payments to the corporation and not rely on installments, which could leave the project incomplete if the builder faces financial issues.

What role does a bar chart play in the redevelopment process?

A bar chart is essential because it provides a clear, visual timeline for the completion of various project milestones. Flat purchasers should insist on receiving monthly progress reports and demand that the builder adhere to these timelines, preventing the project from being delayed indefinitely.

How can flat purchasers protect themselves from builders who might abandon a project?

Flat purchasers can protect themselves by including clauses in the agreement that require the builder to make upfront payments to authorities and provide regular updates on the project's progress. It's also vital to ensure that the builder has enough financial backing to complete the project.

What should flat purchasers do to prevent builders from exceeding the agreed-upon construction limits?

Flat purchasers should ensure that the redevelopment agreement specifies the maximum FSI (Floor Space Index) and TDR (Transferable Development Rights) that can be utilized. This ensures that the builder does not exceed the agreed construction area and avoids potential overcrowding or other issues.

What is the 'Golden Rule' when negotiating with builders regarding project completion?

The 'Golden Rule' is to not simply rely on the builder's promises but to insist on specific terms, such as a bar chart for project progress and a firm commitment on the completion date. Purchasers should also ensure that the project is financially viable and that the builder can afford to complete it without delays.

Why should flat purchasers allow builders to earn a reasonable profit?

Allowing the builder to earn a reasonable profit ensures that the redevelopment project is viable and completed to a high standard. Builders who are under financial stress due to low profits may cut corners, leading to substandard construction and potentially unsafe living conditions.