stjorthotic Chapter 81 Negotiation of Demolition Contract
Chapter 81 Negotiation of Demolition Contract
Chapter 81 Negotiation of Demolition Contract
"Chairman, after such a long period of negotiation, we have drafted the demolition contract. However, there are a few points in the contract that you would like to take a look at."
Xinde Real Estate Agency and Liu Yue talked for over half an hour and finally reached a preliminary agreement on the demolition contract. Manager Wang then reported this preliminary agreement to Chairman Liu Wanhua.
Chairman Liu Wanhua took the contract handed over by Manager Wang and began to flip through it. Manager Wang then explained, "Because Mr. Mao is a recipient of relocation compensation, after exchanging his 2704 million yuan for a house, he can receive a total of 5195 square meters."
Although this is slightly more than the company's requirement that each household can only receive 100-120 square meters, Mr. Mao's case is a special case, so neither of us has any objection to Mr. Mao receiving so many square meters.
As for the handover time, the other party did not object and agreed to our company handing over the property in August 2008. Of course, if the handover is delayed due to some unforeseen factors, there are solutions in the contract, so there are generally no major problems.
Although there are still some minor issues, such as disagreements over acceptance, testing, and evaluation reports, we generally agree that the major issues can be resolved through peaceful negotiation between both parties, and therefore we accept most of the terms of the contract.
However, when it came time to take possession of the property, we had different opinions. One of them was that the other party's lawyer, Liu, insisted that the property should only have 8% of the common area included in the total area, and the remaining 92% should be the usable floor area.
Our company disagreed with this suggestion. After all, we are building a high-rise building, and the common area at the top can reach more than 2% in some cases. Therefore, our company believes that the common area is too small and should be at least 15% to 20% before the remaining area can be counted as the usable floor area.
Regarding this clause, you, Chairman, need to discuss it with Mr. Wang so that both parties can come up with the best solution. Then we can simply amend the contract accordingly.
There is also a second point: due to the different floors of the buildings, the prices will be slightly different. In order to avoid any conflict between the two parties, when Mr. Mao takes the houses, he will specify that he will take the houses on each floor equally. This means that Mr. Mao will take half or one-third of the houses in a building from top to bottom.
Furthermore, for ease of management, Mr. Mao will only take a house in the same building. However, the specific building will be determined after we have completed the construction and Mr. Mao comes to inspect it.
Regarding this clause, our company agrees to let Mr. Mao take a house in one building, but does not agree to let him take 1/3 or 1/2 of the house. Instead, we hope that Mr. Mao can take the houses below the 6th floor.
After all, houses above the sixth floor have better lighting, noise levels, and air quality than those below the sixth floor, so they are more expensive. More importantly, houses above the sixth floor are easier to sell.
"We hope Mr. Mao will take the units below the sixth floor. This way, our future units can be sold faster. More importantly, it will save you, Chairman, a lot of money. After all, if the price difference is tens or hundreds of thousands of yuan per unit, it adds up to a considerable amount of money over dozens of units," Manager Wang said respectfully.
There are definitely more than just these two clauses in the contract. There are many minor details that don't need to be mentioned. Manager Wang only mentioned the most important points where there are branches.
Of course, this was all said behind Mao Xiaoyu and Liu Yue's backs. After all, there were some things that were not easy to say in front of Mao Xiaoyu, so Manager Wang's voice was much softer.
Chairman Liu Wanhua glanced at the preliminary contract in his hand, then looked into the distance where Mao Xiaoyu was talking to Liu Yue. After thinking for a moment, he said softly, "I understand. Go and call Mr. Mao over. I'll talk to him."
As Mao Xiaoyu looked at the contract that Liu Yue had just drafted and listened to Liu Yue's explanation, she had to admit that when she saw the contract, she felt that her 1000 yuan was well spent.
If I were to come here myself, I would be completely clueless. I would have no idea how to sign or draft a contract, let alone a contract without any loopholes.
After all, there were many details on the contract that even she didn't know, all of which had been marked out, and Liu Yue had personally explained them to Mao Xiaoyu.
Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.
Moreover, even the shared area is strictly controlled in the contract.
Not to mention getting a house.
According to Liu Yue, if Mao Xiaoyu were to receive the resettlement housing together with the resettlement homeowners, it would be easy for her house to be relocated to a different resettlement housing complex, which would cause her some financial loss. Therefore, Liu Yue rejected the other party's suggestion.
Furthermore, it was directly stated that Mao Xiaoyu's own area was too large, making it unsuitable for her to receive resettlement housing together with the other resettlement homeowners. It was suggested that in the future, if Mao Xiaoyu took a fancy to a particular building, she could directly acquire half or one-third of that building, which would allow for better management of the housing.
Mao Xiaoyu hadn't thought of this clause at first. But when she saw it on the contract and heard Liu Yue's explanation, she realized that in her previous life, she had five resettlement houses.
The residents there were of varying quality, which resulted in these resettlement houses costing several thousand yuan per square meter more than houses built in the same area. This also explains why the second demolition was extremely difficult.
Because Xinde Real Estate Development Company also discovered this problem, they did not provide resettlement housing during the second round of demolitions. In addition, they made a lot of money during the first round of demolitions, so Xinde Real Estate Company insisted that the demolished households take the money and leave. This resulted in the second round of demolitions taking a full 7 years.
It's actually quite frustrating to look at. The houses are of the same quality and the environment is the same, but the price difference is several thousand yuan just because of the quality of the people in the community. This shows that if the quality of the people in a community is good, it can really drive up the price of the community.
If Mao Xiaoyu specifically requests a house, and chooses to take half or one-third of it from another building, she can directly avoid the resettlement housing group, making it easier for her to sell the house later.
"Mr. Mao, our chairman wants to see you over to discuss a contract," Manager Wang said respectfully as he approached.
"Okay, I'll come over then." Mao Xiaoyu agreed, and then led Liu Yue to sit down opposite Chairman Liu Wanhua.
"Mr. Mao, I have reviewed the contract. There are only two aspects that need to be discussed. The first aspect is the shared area. As you know, high-rise buildings inevitably have shared areas, whether it is electrical distribution boxes, elevators, or fire escape routes, there are certain requirements for them."
These areas are all within the building area and must be included in the calculation for each resident to ensure the maintenance of common areas. Therefore, I feel that the 8% common area you mentioned is a bit low. Generally, for high-rise buildings like this, we need at least 15% to 20% to meet the requirements. So, do you think it's possible to increase this common area percentage?
Chairman Liu Wanhua held up the contract and spoke.
"Chairman, I don't deny that there is a shared area in the upper floors, and that fire elevators and stairwells are also needed. This is normal. But if you sell them to outsiders and you calculate more shared area, that has little to do with me. After all, if people can buy them, it means they have accepted such a large shared area."
But I'm different. I'm a relocated resident. The house I'm giving you is all usable floor area, with no shared area at all. If you calculate the shared area for me again, do I have to go back and recalculate it? Do I have to include all those public toilets and garbage stations outside in my shared area, plus my current square footage, since my current square footage is all usable floor area?
"I'm mainly trying to avoid trouble, so I'm giving you 8% of the common area now. You could say it's area taken from my own usable area. I haven't even calculated this 8% common area; it's all mine. So, I don't think it's reasonable for you to ask for the common area to increase to 15% to 20%." Mao Xiaoyu directly refused.
When the chairman heard Mao Xiaoyu's words, he didn't know how to respond for a moment!
After all, according to current national regulations, the shared area is included in the residential area, but houses built 20 or 30 years ago, or even 30 or 40 years ago, did not have this shared area.
Those old houses are calculated based on the usable floor area. If you now ask for the shared area, their answer is not unreasonable.
Seeing that Chairman Liu Wanhua was still pondering, Mao Xiaoyu spoke up directly, "Actually, 8% is already pretty good, but as businessmen, we should make money amicably. I don't want to put you in a difficult position. How about this, I can adjust the shared area to 12%. But you'll have to compromise a bit. Doesn't the community have an underground parking garage? How about this? Give me 50 underground parking spaces, what do you think?"
Upon hearing Mao Xiaoyu's words, Chairman Liu Wanhua did some calculations. The community was to have an underground parking area, which, according to the plan, could accommodate 1000 cars. Giving him 50 underground parking spaces didn't seem like much.
After all, there are still more than 800 cars that can be parked on the ground, and the whole community can park more than 1800 cars. Anyway, we can't use them all, so let's just give them to him. We can even collect a sum of money from him every month.
However, 12% is not enough for the common area.
Thinking of this, Chairman Liu Wanhua pondered for a moment and said, "12% of the common area is still a bit too little. How about this, give me 15% of the common area, and I'll give you 100 underground parking spaces. What do you think?"
Seeing how readily Chairman Liu Wanhua had given up 100 underground parking spaces, Mao Xiaoyu knew that Liu Wanhua didn't care about these parking spaces at all.
It's no wonder, considering that ordinary people don't own that many cars these days. Who would have thought that in just over a decade, the average Chinese family would own one car?
At that time, the biggest shortage in this community will be parking spaces. After all, there are only 1800 parking spaces in a community with 3000 households, which is not even one parking space per household.
Some people come back late and have to park their cars outside the community, but the temporary parking spaces outside don't allow parking for very long, and they often get tickets from the traffic police.
However, the community only has 800 parking spaces on the ground. In order to balance the parking situation among the homeowners, a lottery is held once a year, and the monthly parking fee is 800 yuan. Many car owners cannot even get a spot.
There's no way around it; the surface parking spaces belong to the entire community, and every household in the community can participate in a lottery. Even if there are underground parking spaces, some families have two cars, so they still need surface parking spaces.
Therefore, every year, 800 parking spaces are allocated to the 3000 households in the community.
As for underground parking spaces, the price has already increased from 40,000 yuan per space to over 200,000 yuan, which is much more expensive than a car.
Therefore, when Mao Xiaoyu saw that Chairman Liu Wanhua didn't care much about the underground parking spaces, she actually wanted to buy them all.
However, she then considered that buying them all might cause public outrage, given that the neighborhood had already seen several disputes over parking spaces. So, Mao Xiaoyu abandoned the idea.
However, this doesn't prevent Mao Xiaoyu from getting more parking spaces. Therefore, Mao Xiaoyu thought for a moment and said, "Since the chairman has said so, I will give the chairman face. How about this, we can each compromise. We will give 120 underground parking spaces, and the common area of the building will be 15%, with a minimum building area of 85%."
Chairman Liu Wanhua hesitated for two seconds after hearing Mao Xiaoyu's words, then nodded and said, "Okay, no problem."
"Then let's talk about point 2. You see, this is also a demolition compensation house. We don't make any money to begin with. When we get the houses, could we try to get some of the lower-level houses?" Chairman Liu Wanhua changed the subject and asked.
"Chairman, this isn't about demolition or not. I'm not stupid; I can't take everything downstairs. How about this: if your first floor has any free basement units, I'll take those. The other units will be taken one by one. What do you think?" Mao Xiaoyu said.
Because the entire community is going to build underground parking garages, but it doesn't mean that all the houses will have underground parking garages. Due to geographical or environmental reasons, it's not possible to build underground parking garages in the areas on the edge.
However, these areas were already excavated during construction. Since they cannot be used to build underground parking garages, developers usually use them as underground space to construct underground parking garages.
When buying a house, they can offer extra money by giving away the underground parking space, but the property certificate doesn't include proof of the underground parking space.
Just like the attic on the top floor, many triangular top floors are like this, and they all give away attic space, but it is not within the square footage. It's not that real estate developers don't want to sell these places, but the country stipulates that they are not allowed to sell them.
When you sell the house later, you must seal off the attic before you can sell it. And you can't specify in the contract that the attic is included in the sale.
When Chairman Liu Wanhua heard Mao Xiaoyu's words, he knew that this was already the best he could do. After all, no one is a fool, so he nodded in agreement and said, "Okay, if there are any extra ground floor apartments with extra underground space, we will sell them to you."
Chairman Liu Wanhua didn't dare to make a definitive statement. After all, some people would like apartments with extra floor space, and it's normal for them to spend an extra 100,000 or 200,000 yuan to buy one. When that time comes, it's impossible to sell to Mao Xiaoyu, let alone to those people.
Therefore, Chairman Liu Wenhua dared not make a guarantee, only saying that he would sell to Mao Xiaoyu if such a deal became available in the future. In reality, he meant that if the deal fell through, he would then sell it to Mao Xiaoyu.
"Then I thank you, Chairman."
Seeing that the two points of contention in the contract had been resolved, Mao Xiaoyu stood up warmly, shook hands with the chairman, and indicated that the contract was now finalized.
>