What Should You Do if a Builder Delays Property Possession?

The delay in possession by the builder can be frustrating for buyers, impacting those eager to shift to their new homes. This situation is particularly challenging for individuals residing in rented spaces or those who have made plans to leave their current property.

You might be wondering – if a builder delays a project, what to do. But you are not remediless here! Let’s see the possible reasons for the delay in possession certificate by the builder and what you can do in such scenarios.

Possible reasons for Delay in Possession

Here are some of the most common reasons for delay in possession of property to the 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 in case of Delay in Possession of Property?

If there is a delay in possession of the property, here are some of the steps you can take:

1. Legal Recourse Within RERA: Real Estate Regulatory Act (RERA) is the principal law regulating the real estate sector. It protects the buyer’s interest by laying down remedial measures as well as regulating the conduct of real estate developers and agents. Here are some of the legal measures you can take under RERA if the builder delays the possession of property:

• You can file a RERA complaint against the builder with the adjudication authority as per Section 31 of RERA against the builder or the real estate agent.
• You can either seek interest for delayed possession of the property or claim a refund from the builder along with interest thereon. In case of non-compliance, the builder may be liable to imprisonment or a fine.
• In case the builder unilaterally changes the date of possession of the project, then the buyer has the right to withdraw from the project and claim a refund of the entire amount. In case he does not withdraw, the buyer still has the right to claim compensation for the delay. In case the builder does not compensate, the buyer can approach the relevant authorities under RERA.

2. 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.

Understand Your Rights

If you are planning to buy a property in India, then you should be aware of your rights. Many buyers fail to take remedial measures and avail of compensation for their losses in case the builder delays possession just because the buyers are not aware of their rights. As RERA functions differently for each state, you can visit your state’s RERA website to check out all the projects being developed as well as their status and profile. This can simplify and improve your overall home-buying experience.

Apart from choosing the right project and builder to invest in, selecting the right financer is equally crucial if you are buying real estate. Real estate loans are long-term financing facilities going up to 10-20 years. Choosing the right lender is important to ensure a seamless financing experience. 

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Frequently Asked Questions

Q1: What is the compensation for the delay in possession of the flat?

Ans: In case there is a delay in possession of the flat, then the buyers can claim compensation, interest, or even a refund of the entire amount as per the provisions of RERA.

Q2: How can I check the project details?

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

Q3: How can I file a complaint with RERA authorities?

Ans: You can visit the RERA website of your state and file RERA complaint against the builder accordingly. If you find it difficult to file a complaint online, you can visit the nearest RERA department to file the complaint.

Q4: Can I file RERA complaint against builder in the court?

Ans: RERA complaints against builders and agents are entertained by the RERA authorities. Outside RERA, you can visit the consumer court to file a complaint against them. However, civil courts do not address consumer complaints against builders as RERA authorities hold jurisdiction in such cases.