Date : 06 Mar, 2019
Post By Barbie Duggal
delay in possession of the house is one of the worst nightmares of a buyer, but
what if it actually comes true? A property buyer, who invests his hard-earned
money in buying a home and does not get its possession on time, not only fails
to get a roof over his/her head but also ends up losing money, in the form of
EMIs on the home loan and paying for a rented accommodation. Moreover, the
buyer may also have to wage a long and tedious legal battle to get the justice.
As alarming as it sounds, it is quite a common scenario these days, given the working capital crunch which builders face. These delays can occur due to the following reasons:
-Pending municipal approvals or dispute Working capital crunch
-The developer has gone out of funds (and property is not selling) and the bank is refusing to fund the project.
If you are sure that you will be getting possession in the next few months or years, you can make a claim for the money spent for renting purpose. In addition to this, in case of delayed possession, you can also make a claim of the interest on the payment that has been made for the flat.
One of the most beneficial Acts that have come into existence in recent times to protect buyers from exploitation is the Real Estate (Regulation and Development) Act, 2016. The Real Estate (Regulation and Development) Act, 2016 also establishes the State Real Estate Regulatory Authority in every state for redressal of grievances against a builder. A buyer can file a case against the builder under the RERA, 2016 or transfer their case from a CDRC to the State Real Estate Regulatory Authority.
According to this Act, a builder will have to pay 10% interest on the value of
the property for delayed possession of flats. RERA was enacted with the
intention to prevent exploitation of buyers, safeguard their interests and
provide stricter punishment for builders delaying possession of the property.
In addition to RERA, the Domestic Building Contracts Act, 1995 also aims to protect the interests of property buyers in case of delay in possession.
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