Aug 14, 2015
Delay in possession of a residential property can be a frustrating affair and the buyer is often confused and anxious in such situations. As a buyer, it’s always recommended to keep yourself prepared for any such occurrence.
One of the most frustrating and widely prevalent problems faced by buyers is the delay made by the builders and promoters in possession of the property. Delays in completing the housing projects are quite a common practice in India. Here are some things you should keep in mind.
Understanding Possession Delays
It is a common practice for project developers in India to include a 6 months grace period when they enter into an agreement with buyers. Several buyers take it for granted that there will be a delay of six to twelve months.
However, it has been often observed that possession of the purchased property gets delayed even beyond the expected time period. The delay can occur due to the slow paced progress of the housing project or the project getting shelved all of a sudden. Financial troubles faced by the builders and legal hassles are also some of the major reasons of delays in possession.
Remedies Available for Buyers to Deal with Delay in Possession
Here are some remedies available to homebuyers for dealing with delay in possession:
1. Ask for Refund- A homebuyer can ask for a refund from his builder when there are excessive delays in completion of a housing project. As the buyer, you have the entitlement to ask for a refund from your builder.
2.File Case in Consumer Dispute Redressal Commission -If a property is being purchased by you exclusively for your personal use, you can even file a case in one of the 3 levels of the Consumer Dispute Redressal Commissionbased on the value of the property purchased. If the dispute occurs for a property whose value is more than 1 crore, then the case has to be filed in the National Commission located in New Delhi. For properties whose values are over 20 lakhs, the dispute needs to be resolved in front of the State Commission while for disputes related to properties below 20 lakhs, the case has to be filed in the district commission.
3.Special Provisions in Select States in India- Some states in our country enjoy special provisions for the benefit of their consumers. Maharashtra, for instance, has a provision whereby a remedy is available to you through the Section 8 of Maharashtra Ownership Flat Act of 1963. The section specifies that if a builder is not able to give proper justifications for the delay in possession or non-completion of the project, he’ll have to refund the amount, with interest, to the buyer.
4.Additional Provision- The ‘Domestic Building Contracts Act’ of 1995 lays down that the builder has to provide the following warranties:
(a) The builder should complete all the work on time.
(b) All construction work should be carried out as per the specifications and plans that have been specified in the contract.
(c) The builder should use and supply high-quality materials.
(d) The builder would endeavor to do the work with reasonable skill and care as per the legal process.
(e) The home should be apt for occupation when the work gets completed as per the builder.
5.Serve Legal Notice- Before taking any type of action against the builder, it is recommended that you serve them a legal notice and give them an opportunity to respond. The builder might take corrective actions to get the problems resolved, thus saving your valuable time and costs that are usually associated with visiting the court.
With these remedies in mind, head to commonfloor.com and find the residential project of your dreams.