When it comes to jointly owning a plot with your siblings and you decide to redevelop, it's essential to address various challenges while preserving family relationships and ensuring a smooth process.
Here, we share insights and solutions gathered from the experiences of others to help you make informed decisions.
Scenario 1: Two Siblings Opting for Turnkey Development
In this case, we've observed both successful and less successful outcomes. To avoid disputes and maintain harmony:
Avoid Valuation Disputes: Avoid valuing each floor individually. These discussions can strain relationships, so it's best not to dwell on them.
Equal Floor Distribution: Split the floors evenly between the two siblings.
Follow the Old Layout: Consider replicating the old home's layout in the new property. For example, if one sibling lived on the ground floor and the other on the first floor in the old house, maintain a similar arrangement in the new one.
Terrace and Basement: If these were previously shared spaces, continue to split them equally. It's advisable to avoid situations where one sibling wants exclusive rights to these areas, as it can lead to valuation disagreements.
Partition Deed: Create a partition deed for clarity and future reference.
Cost-Sharing: Divide the construction costs evenly. If any additional work is required on a particular floor, the responsible party should cover those expenses.
Scenario 2: Two Siblings Opting for a Collaboration
Out of the 4 new floors, one floor is taken by the builder. Two floors are divided among the siblings. The challenge is what to do with the remaining 4th floor.
Two-Floor Collaboration: Opt for a two-floor collaboration with your siblings. Keep in mind that in such cases, the builder may offer a discount for the combined value of both floors. This we believe is the best option in case two siblings do not want to opt for the Turnkey approach.
One-Floor Collaboration: Collaborate on one floor and consider selling the other floor during or after construction, then split the proceeds. In this scenario, there can be some disputes again on the sale price and timing of the sale.
Avoid Sole Ownership: It's advisable to avoid one sibling buying the entire third floor, as this can complicate the valuation process.
Scenario 3: Three Siblings Going for Turnkey Development
There are three siblings involved, and 4 floors are built in Turnkey. So, three siblings divide the three floors. Now, the challenge is how to divide the 4th floor.
In this case, collaboration is often the best solution. All three siblings can work together on three floors, and the fourth floor can be designated as joint property, governed by a partition deed.
Remember, it's crucial to address property-related matters before the next generation steps in. This proactive approach safeguards the property and minimizes disputes among the younger family members.
The suggestions provided here are meant to kickstart your thought process. Every family situation is unique, so open communication and a willingness to adapt to your specific circumstances are essential.
If you find our experiences helpful, we're here to assist you. Your journey through plot redevelopment can be smoother with the right planning and a focus on maintaining family harmony.
Please feel free to drop an email at sales@prithu.in to schedule an introductory call with us.