On Fri, Jun 18, 2010 at 11:37 AM, Kiran Jonnalagadda <[email protected]> wrote:
> 2. If you buy an apartment and twenty years later, there's a flood or
> earthquake that leaves the foundation weak. The building is demolished. What
> asset are you left holding? It's not land, it's a development right to go
> vertical.

This is inaccurate. When you buy an apartment you are buying two things:

- The apartment itself.

- An undivided share of the land on which it was built. This is
usually (but needn't be) an equal share. So you if you are one of 10
apartment owners, you are entitled to 10% of any future sale but you
can't point at any specific spot and say it's yours. As a co-owner you
have a share in any future construction but you don't automatically
have a development right[1] unless BBMP gives you some as compensation
for demolishing the now unsafe building.

-- b

[1] In the sense of a right to develop beyond normal regs.

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