In February 2019, the Maharashtra Real Estate Regulatory Authority directed a developer to refund a sum of Rs 1.06 Crore, along with 10.55% interest and stamp duty of Rs 6.65 Lakh to Bollywood actor Vrajesh Hirjee for delayed possession of a flat. Shockingly, the developer did not mention the date of possession in the registered agreement.
Over the last few years, several developers have avoided mentioning the possession date in the sale agreement to avoid the penalties under RERA. So, what are homebuyers’ options in such a case? Well, let’s find out.
Understanding possession date
It is imperative that you clearly understand this term to avoid unnecessary hassles later. Possession date is the date on which the builder or the seller of the property has promised to hand over the said property to the buyer. Under RERA, the possession date must be mentioned in the sale agreement.
This date could be anywhere between few months to a few years after the parties involved (the buyer and seller of the property) have entered into an agreement to sale. In other words, the possession date can also mean the completion date.
On the possession date, the builder should have completed all the construction work and should have obtained necessary permissions like Completion Certificate and Occupancy Certificate for the buyers to start residing in the property.
The possession date signifies the date from which the buyers can demand the possession of the property from the seller /builder.
Importance of possession date
Have you noticed one common aspect of income tax benefits? Well, they all kick in only after the possession of the property. Even without taking into effect these benefits, the possession date for a property assumes a lot of importance.
Options for homebuyers
Without a definite date in black and white, it is difficult for the buyers to ascertain the reasonable date for possession of the property. If the waiting period gets prolonged, the buyer would have to spend on pre-EMI as well as the rent of the house (in case of rented property). Here’s what homebuyers can do.
Approach the consumer court or RERA
Even in the absence of a possession date, the buyer can have recourse to the consumer court or RERA for unreasonable delay in handing over the property. There have been judgments in favour of the buyer in these cases by various RERA authorities. Like in the case mentioned above, the builders have been ordered to refund the amount paid with interest.
Besides, if the buyer is not satisfied with the order, they can approach the appellate tribunal within 60 days or further appeal can be done at the respective High Court.
To avoid getting into circumstances like these, which takes away your peace of mind, make sure to get a draft sale agreement verified by your lawyer and ensure all required conditions as per RERA are explicitly stated in the agreement before you sign on the agreement.
