Delay in possession of flats, apartments, or plots

In the real estate sector, builders commonly make delays in the possession of property to buyers and allottees; this is basically the most common crime in the real estate sector. In this case buyers and allottees can file complaints against this under the Consumer Protection forum or the Real Estate Regulatory Authority. 

As per the RERA Act, registration of property projects is mandatory, and registered property projects guarantee that buyers will receive possession of the property within a decided time period.  This act promotes fair practices and protects the rights of buyers and consumers in the real estate sector. If any buyers face any delay in the RERA-registered property, they can file a complaint with the RERA authority.  Buyer can file a complaint for getting compensation and a refund from the builders and developers of the property.

Possession date is one of the important clauses in the property agreement that is made between buyers and builders of the property. The possession date is like a decided time or builder’s promise to the buyers; they completed the construction work of the buildings or any other commercial  property project. As well as completing the process of permission from local authorities and handing over the keys of the flats to the homebuyers and giving complete possession of the plots to the buyers. Possession date is mostly a few months or years after the date of signing of the purchase agreements. Builders or developers must provide possession of the property within the decided time limit or else face the penalty as mentioned in the Real Estate Regulations Act.

Let’s see which provisions of the RERA Act deal with possession of property.

Section 18

As per Section 18 of the RERA Act, if any buyers or allottees face any delay in the possession of flats, plots or apartments, then buyers are entitled to get compensation as per this section. If the builders or developers fail to complete the project in the decided timeline or fail to provide possession of the property to the buyers, then the allottee withdraws from the project and the builders need to return the amount received from buyers for apartments, plots, and buildings. 

As well as builders have to provide the compensation along with that, as per the mention in the RERA Act. If any allottee does not want to withdraw from that property project, then builders or developers have to pay him interest for every month of delay until the builders give the possession of the property. 

Section 31 

In the case where the builders or developers make delays in the possession of property as well as refuse to pay the interest to the buyers. Then buyers can start the legal proceedings against the buyers  as per Section 31 of the Real Estate Regulation Act. The filing format of the complaint is different in each state but the basic structure is the same all over India. In the complaint, buyers must provide a registration number, basic details of the project, and detailed information about how the builders violated the RERA regulations and rules. 

Along with that, related documents like the Agreement for Sale, Payment proofs and one copy of the complaint and all these documents are also provided to the builder. Then RERA will provide a date of hearings to both parties. At the time, the adjudicating officer hears both parties and asks questions to both parties; after that, they decide the case. Matters under the RERA follow the time limit of 60 days within which the matter must be decided. 

Section 71 

As per this Section 71, the RERA Authority appoints one or more judicial officers as necessary for holding an inquiry; this officer is typically a retired District Judges. Responsibilities of these officers are to conduct inquiries in real estate cases and provide a fair opportunity to hear both parties. 

Section 72 

When your RERA case is under Section 71, than factors to be considered by the adjudicating officer is the 

• Officers consider how much builders or developers make in gain or profit by breaking RERA rules; they calculate this in numbers.
• Officers consider how much buyers or allottees face in loss due to this rule-breaking from builders or developers; they see how much financial loss and how much mental trauma they face. 
• Officers see that the same builder or developer has broken the same rules severely, so they basically check the habit of the builders or company or it happens for the first time.
• Officers also check other related factors that they feel are important for making fair decisions in the matter. 

Section 79 

As per Section 79 of the RERA Act, civil courts are not allowed to handle cases related to the RERA Authority; cases under the RERA are handled by the adjudicating officer or the Appellate Tribunal.  But this  Act allowed the consumer forums to handle complaints related to these offenses. 

What is the legal process follow by the buyers if they face delay in the property project

• First step taken by  buyers must be to check all the terms of the Builders-Buyers Agreement. Are terms included in this agreement for the time limit for completing the property project, the delivery date of the project, the quality standards of the property project, the payment method, and the code compliance certificate? So the buyers must know  the exact timeline of property project delivery. 
• Second step is buyers must collect all receipts of the payments made by them to builders for purchasing property, as well as all related documents that must be collected by buyers.
• Third step in this process is the buyers must make a conversation with the builders and share the problem about the delay in the property possession. If the builder is not available or not responsive to the calls, then buyers use written conversion options like sending an email to the builders about the problem. 
• Fourth step is sending legal notice to the builder. After written communication, if the builder is still not responding, then the buyers visit the nearest civil court and send the legal notice to the builder for getting updates on the delay in the possession of property. 
• Fifth step buyers can take is to visit the State’s official RERA websites and find their property project by using the RERA registration number and file a complaint against builders or property projects. If the project doesn’t activate registration, then buyers must immediately inform it. 
• Sixth step that can be taken by buyers is that after sending the legal notice and still not having the builder respond, the buyers have to take legal help. Buyers hire a good real estate lawyer and try to mediate the process.
• In property-related cases, mostly out-of-court settlements are preferred for getting quick solutions. But these options fail to solve the problem; legal lawsuits are the only option for the buyer. These legal battles are complicated and time- and cost-intensive, so buyers need to take proper legal help to smoothen this process. 

If you are searching for an experienced real estate lawyer to solve the problem of getting delays in possession of the property, then visit our website, Right To Law,Firm.  And Book an appointment with our professional lawyers, who have years of experience in handling cases related to RERA, with specialization in handling matters of delay in possession of the property. 

Punishment for delay in completion/possession of property project

Which legal actions are taken against builders in RERA for the offense of delay in completion or possession of the property? 

• Builders or developers, if unable to complete the project within the time limit, then they return the buyer’s amount along with the interest rate of 10% on that amount.
• Builders must separately preserve 70% of the money from buyers or investors and use that money for giving project possession.
• RERA set up the special tribunals for solving real estate matters quickly, and those tribunals have the power to resolve the cases in 60 days, which helps buyers to get justice in time. 
• In the same matter, the National Consumer Dispute Redressal Commission gave orders to developers to return the interest money of buyers who filed cases against them.

Which precaution can taken by buyers to avoid delay in possession of property form buyers

• Buyers must demand the written affidavit from the builders; that affidavit must mention the time of completion and time of possession of the property. This affidavit must be submitted along with other necessary documents from the builders. 
• Buyers should check all the terms and conditions that mention the sale agreement. Now, the sales agreement also mentions the possession date and also mentions that if the builder is unable to give possession in the decided time, then an interest rate will be paid to the buyers for the delay in the possession of the property.
• The buyers must check the title of land ownership and must ask the builders to prove the written affidavit  documents that prove the authenticity of the land’s ownership. Buyers also ask for affidavits that prove the land acquired by the builder for completion of the project is free from all encumbrance.
• Buyers must check the amount they deposited for purchases or property; 70% of that amount must be  preserved by builders separately for using that amount to complete the project. This account must be audited by the chartered accountant every six months. 

Frequently Asked Questions