Property Possession Delayed by Builders? what to do next 

Property Possession delayed by builders can be an unpleasant experience, and the buyer is frequently confused and apprehensive in such cases. As a buyer, you should always be prepared for such an occurrence. 

One of the most aggravating and common issues that buyers confront is the builders’ and promoters’ delay in taking control of the property. 

Delays in finishing housing projects are rather typical in India. Here are some things to bear in mind.  

Delayed Property Possession: An Understanding

 In India, it is customary for project developers to incorporate a six-month grace period into their agreements with purchasers.  

Numerous purchasers assume that there will be a six- to twelve-month delay. 

Nevertheless, it is frequently noted that there is delayed property possession beyond the anticipated time frame.  

The delay may be the result of the housing project’s gradual advancement or its abrupt shelving.  

Legal complications and financial difficulties encountered by the contractors are also significant factors contributing to possession delays. 

Potential explanations for the delay in possession include: 

The following are some of the most prevalent causes of property possession delays for buyers: 

Regulatory Approvals: If there is a delay in receipt of important regulatory approvals, then there can be a delay in receiving possession certificates. 

Financial Constraints: Builders sometimes face financial constraints following which they aren’t able to complete projects on time leading to delays in receiving property possession. 

Contractual Disputes: Sometimes, there can be contractual disputes between the builder and contractors or subcontractors leading to delays in the completion of construction and possession.   

Force Majeure: Natural calamities, political instability, and any other unforeseen events can lead to delays in the completion of construction. These events are out of anyone’s control. 

Inefficient Planning: Inefficient planning and project execution like poor planning, lack of skilled laborers, inefficient project supervision, etc. are some of the common reasons leading to delays in the completion of the project and possession of property. 

What to do when property possession is Delayed-Understanding RERA

1. Legal Recourse Within RERA: 

• The Real Estate Regulatory Act (RERA) is the main law that governs the real estate business. It looks out for the buyer’s best interests by regulating the behavior of real estate companies and agents and setting up steps to fix problems. If the builder doesn’t give you the keys to your home on time, you can take some formal action under RERA: 
• Section 31 of RERA says that you can make a complaint against the builder with the authority in charge of hearing cases. This can be done against either the builder or the real estate agent. 
• You can either ask for interest on the time you took to get the house or ask the builder to give you a refund plus interest. If they don’t follow the rules, the builder could face imprisonment or a fine. 
• Should the builder change the date of ownership without warning, the buyer has the right to back out of the deal and get their full payment back. Even if the buyer doesn’t back out, he can still ask for money to make up for the delay. If the builder does not pay, the buyer may contact the appropriate officials in line with RERA. 

2. Legal Recourse Outside RERA:  

Legal Recourse Outside RERA: After the establishment of RERA, civil courts did not entertain complaints from real estate buyers. However, homebuyers can still prefer complaints to consumer courts under the Consumer Protection Act, 1986 as these courts have not been barred to entertain consumer complaints. Buyers can approach the following courts depending upon the amount of compensation: 

• District Commission for properties valued at Rs. 20 lakhs 
• State Commission for properties valued between Rs. 20 lakhs to Rs. 1 crore. 
• National Commission for properties valued above Rs. 1 crore. 

Options for Buyers to Handle Possession Delays: 

Request a refund– When there are significant delays in the conclusion of a housing project, a homebuyer may request a refund from their builder. You, as the purchaser, are entitled to request a refund from your constructor. 

File a case with the Consumer Dispute Redressal Commission– If you are purchasing a property solely for your personal use, you have the option to register a case in one of the three levels of the Consumer Dispute Redressal Commission, depending on the value of the property.  

Special Provisions in Certain States of India:

Several states in our nation have unique provisions that are advantageous to their consumers.  

For example, Section 8 of the Maharashtra Ownership Flat Act of 1963 provides a remedy in Maharashtra.  

The section stipulates that a builder must refund the customer the amount, with interest, if he is unable to provide adequate justifications for the delay in possession or non-completion of the project. 

Additional Provision on Delay in Property Possession:

The ‘Domestic Building Contracts Act’ of 1995 mandates that the contractor furnish the subsequent warranties: 

• The contractor is required to complete all tasks within the designated timeframe. 
• The specifications and plans outlined in the contract must be adhered to for all construction work. 
• High-quality materials should be utilized and supplied by the constructor. 
• The builder would make an effort to complete the work with a reasonable level of skill and care per the legal process. 
• The residence must be suitable for occupancy upon the completion of the construction project under the builder’s specifications. 

Issue a legal notice:

It is advised that you provide the constructor with a legal notice and allow them to respond before taking any action against them. The contractor may implement corrective measures to resolve the issues, thereby avoiding the time and expenses typically associated with court visits. 

Frequently Asked Questions:

1. What is the compensation for the delay in taking ownership of the flat? 

If there is a delay in taking possession of the property, the buyers may seek compensation, interest, or even a full refund under RERA laws. 

2. How do I check the project’s details? 

You can check the entire details of the project by visiting the RERA website of your state. 

3. How do I make a complaint with the RERA authorities? 

You can visit your state’s RERA website and file a complaint against the builder. If filing a complaint online is problematic for you, you can do so at your nearest RERA department. 

4. Can I pursue an RERA complaint against the builder in court? 

RERA complaints against builders and agents are investigated by RERA officials. Outside of RERA, you can submit a complaint with the consumer court. However, civil courts do not hear consumer complaints against builders because RERA officials have authority in such circumstances.

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