How to deal with faulty builders?

Himangi deshmukh, Delhi-NCR

18th November 2014

Real estate News in Delhi

investment advice

delay in possession

delhi real estate

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Hi Himangi Deshmukh,

As per my knowledge, Delays in construction, delivery and false promises by developers are a few problems that real estate buyers are facing today. Most of them don’t know how to deal with the situation. In India delay in project possession is common now a days. Developers are including grace period which is generally 6 months ,in their agreement with buyers. Still there are some projects which are taking more that 1-2 year to give possession.

Deep Thakur, Delhi-NCR

18th November 2014

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Hi Himangi,

What normally a buyer can do is discuss with builder or broker about the delay in possession & then either builder/broker they will say after 6 months it will hand over. If again it will delay then either builder or broker they will not answer your call . In some cases builders are saying to pay the final amount .

Amit Raj, Delhi-NCR

18th November 2014

The main problem for a home buyer(end user) is he/she will follow the construction link payment plan(CLP) designed by builder & also he will pay a huge amount as interest to bank, as because he/she had taken loan for that project. So in this case what buyers will do? Except buyer can claim delay in possession charges !!! It is becoming very common that most of people they don't know how to deal with the situation.

Sujan Mitra,

18th November 2014

Hi Himangi,
According to me, in case the developer refuses to pay the delay-in-possession charges,you can send him a legal notice. The Supreme Court has held that a consumer has the right to approach the Civil Court or the Forum under the Consumer Protection Act for relief in a situation where the builder commits breach of his obligations.

Gautam Das, Delhi-NCR

18th November 2014

Hi Himangi,

In my point of view, to fight with this kind of situation, there are laws such as the Maharashtra Ownership Flats Act or the Development Control Rules, under which the case can be filed before a Civil Court for damages for refund of amount and interest on the said amount.

Praneetha, Delhi-NCR

18th November 2014

Hi Himangi,
As per my knowledge, the process buyer needs to follow is first buyer has to to consult with local lawyer/advocate, then send a legal notice to the builder through him. After this, buyer must carefully draw up complaint and file before the Consumer Forum.

Richa, Delhi

19th November 2014

Hi Himangi,

But now the question is ,can a consumer get his or her money back with compensation? Then answer is YES. Refunds can be claimed if a project is delayed beyond the period stipulated in the agreement. You(buyer) can file a case in the Consumer Disputes Redressal commissions at the district, state and national levels.

James, Delhi

19th November 2014

James, Delhi

19th November 2014

Hi Guys,

In cases such as, if the builder asks a consumer to pay the holding charges till the time registration formalities are not completed within the decided time, what should the home buyer do ? If it’s not mentioned in the agreement, the builder cannot force you. The buyer can also file a complaint before the Competition Commission of India if he/she(buyer) is able to show that the builder is a dominant entity in the market and is misusing his position to the detriment of the buyer by unilaterally imposing exorbitant hidden charges.

Neha Srivastava, Delhi-NCR

20th November 2014

Hi Himangi,

According to me, suppose there is a completed project & ready for possession then ,it is advisable to check that the builder has Completion Certificate(CC) from Municipal Authority. Although the certificate is withheld to penalise the builder/developer for not fulfilling the desired norms, it ultimately affects the flat owners. In many cases, builders/developers disappear once the flat is sold and the owners face numbers of problems because it is difficult for them to resell or mortgage the property without the document.

Kajal, Delhi-NCR

20th November 2014

Hi Guys,

I saw all the comments given by people here. Some comments felt like it happened with them too. So my suggestion is before buying any kind of residential property it is wise to check all the legal papers of the builder. A complete title search of the property must be done. Check all the chain deeds of the property and plan sanction approvals.

Jay, Delhi-NCR

21st November 2014

Hi Himangi,

Like others are saying how important is checking documents, i will say an ordinary person can not verify these documents without proper knowledge. So i think it will be better if you will engage a lawyer to conduct searches in the registrar’s office and the courts. For ownership to be valid, a registered sale will also need to be executed. In the absence of which, you will not get the valid title of the property.

Pranjal, Delhi

21st November 2014