Here are some legal remedies for delayed house possession
Sulekha.com lists out the available legal remedies that can be used in case there is a delay in getting the possession of the property. It lists out possible laws under which one can file a complaint against the builder.
August 06, 2013 / 18:26 IST
Sulekha.com
Delay in delivery of possession in a building is one of the most commonly faced and frustrating problems for a property buyer. It makes it difficult or impossible to plan for the future, and increases other costs – for example, if you are staying in a rented property, you need to pay the rent as well as the EMI for the loan taken to build the new house. Also read: Service Tax on under construction property – To Pay or Not?Therefore, it is very important to know what remedies are available in case the builder delays the construction of the building:a. You can ask for a refund. If the builder delays the completion of the construction beyond the stipulated time, you are entitled as a property buyer to seek a refund from the builder. b. If you are buying the property for personal use, you can file a case in the consumer dispute redressal commission at all the three levels i.e the district , the state and the national commission depending on the value of the property or the amount of damage you have suffered. Any dispute over 20 lakhs can be directly filed before the State Commission and any dispute over 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District. c. There are special provisions in some states for the benefit of consumers. For example, if you are in Maharashtra, you can get remedy through Section 8 of the Maharashtra Ownership Flat Act 1963, which makes the builder liable to refund the money obtained from a consumer with interest if he is unable to justify non-completion or delaying possession of his project. This section clearly works to safeguard the interest of the consumer and it is the duty of the builders to complete the construction on time. d. There are some additional provisions which you should be aware of. For example, the Domestic Building Contracts Act 1995 states that the builder has given the following warranties – (a) That all the work would be completed on time (b) That all work will be carried out in accordance with the plans and specifications set out in the contract (c) That all material to be supplied by the builder will be of a high quality (d) That the work will be done in a legal manner with reasonable care and skill, and (e) when the work is completed, the home will be fit for occupation. As per this law, you are entitled to take action for delays.e. Please remember that before you take any action, it is always advisable to send a legal notice to the opposite side giving them a chance to respond. Once a legal notice is sent, the builder may take action to solve the problem, and you can save the needless time and expense involved in going to court. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
