5 things to do when builder delays a project
A very common problem faced by property buyer(s) is that the delivery of possession of the property purchased is delayed, sometimes indefinitely and the investment of the prospective buyer is stuck. Such delays may be due to various reasons, which we will not discuss here, but the end result is that the buyer(s) becomes victim of the delay and all his future plans are mired. We will discuss here the steps and requirements a victim of such delay should take:-
Sale Agreement: – Precautionary step to protect against the apprehended delay in completion of project has to be taken in the very beginning, right at the time of execution of the sale agreement. All the terms, conditions and stipulations pertaining to the agreement including delivery schedule should be mentioned therein. It must be ensured that the time of handing over possession of the property, compensation for delay in possession, recourse to legal remedy all are clearly mentioned. All future steps have to be taken in accordance with the same. Therefore it is imperative to ensure that clauses pertaining to delays are unambiguously included in the agreement. Please make all the checks before you sign on the dotted line.
Communication:-In such cases the communication is the key. Developers have to claim payments for construction-linked plan loans with the bank, if a payment has not been claimed within the specified time; it is a sign of the project going off calendar. When the builder misses the delivery schedule, the buyer should write a complaint letter to the builder reminding him of the delay and demand for immediate delivery. If no response is received within a reasonable time then, it should be followed by a reminder. Preferably, both the letters should be delivered by hand (if possible) against due acknowledgement, otherwise it must be sent by registered post with A/D.
Legal notice:- If both the aforesaid letters remain unresponded then a legal notice, by a competent lawyer, must be sent to the builder demanding immediate and timely delivery of possession of the property and consequences on failure, must be clearly mentioned in the said notice.
Notice of cancellation:- If possession is not delivered within the stipulated time then another notice should be sent to the builder/developer intimating them of cancellation of the agreement and refund of all the money paid, interest on the amount and compensation for loss of opportunity, mental harassment etc. It must be mentioned therein that the next recourse would be a legal one and builder/developer would be responsible for all the cost thereof.
Legal recourse:-The last step is to file a case with consumer forum under Consumer Protection Act, 1986, seeking redressal for deficiency in services of the builder. Try to form a group with fellow buyers in the project; this will make your case much more impactful. Your group effort will reap better results in all probabilities.
The Real Estate (Regulation And Development) Bill, 2013 has provisions for this critical issue.
According to the bill, developers will not be able to charge more than 10% of the total payable amount without entering in a written agreement with homebuyers. The bill also protects against project delay by provision of full refund of the total amount in case of delay of the projects.
Under sub-section 2 of section 17, the allottee is entitled to know the schedule of the project completion. Sub-section 4 of section 17 protects the allottee against delay of the project by entitlement to full refund of the amount paid. This section is applicable in case of delay of the project or the developer is unable to give possession of the apartment or plot or building in accordance to the agreement.
