6 Things to Do When Home Possession is Delayed
The process associated with buying a home is no joke. Many challenges come up when you’re on the hunt for an ideal home, including arranging finances and home loan. And if even after putting your hard-earned money, you fail to receive the possession of your property on time, you’re not only left without the roof over your head but ends up losing your savings or money as well. Which may be in the form of home loan EMIs or costs for a rented accommodation.
Why is Home Possession Delayed?
The ongoing delay in the home possession is one of the worst nightmares of a buyer. This is a common scenario these days and it occurs mainly due to:
- Pending approvals from the municipality.
- The builder is facing working capital crunch because of insufficient funds or the bank has denied for funding the project.
Only the developers should not be blamed for the delay in home possession. Several times, projects may stall due to land acquisition debacles. Projects need to be approved by several government authorities and procuring clearances is a long-drawn process.
Whatever the reason might be, this delay makes it difficult to plan for the future and increases other costs. Therefore, it is important to combat with this raging issue with several solutions. But, before that, you must know some warning signs to avoid the risk of getting locked in a delayed home possession.
Warning Signs to Avoid Any Risk
You’ll certainly receive the possession on time if the project holds necessary approvals along with the funding from a bank. There are many projects that boast of 100% funding from foreign private equities and other investors. This means there are lesser chances of delays because of lack of funds. But, if that’s not the scenario, you must:
- Ask for a copy of a duly stamped copy of the project’s drawings. In the case of any doubt, it is advisable to conduct your purchase with the attorney.
- You can also ask for a construction schedule from a builder.
- Developer should provide construction progress reports to claim construction linked property payments. But, if the developer is not claiming the payment within the stipulated time, it’s a warning that the project is going off the schedule.
With that said, you need to do a groundwork before you take any action. Keep all the evidence and records safe such as booking papers, receipts, brochures and any signed agreement between two parties. It is suggested to confront buyer with any questions and concerns before resorting to any legal action. If there are people having grievances on the same project, then try to approach the developer as a group. But, if no resolution comes through, it is advisable to take a legal action.
Seek a Compensation
If the builder delays the possession beyond the stipulated time, you have the right to ask a compensation from the builder. In addition, you should make sure that before signing the agreement, such clause governing compensation is written in the agreement.
If the builder is still refraining to give you compensation, then it’s the right time to send a legal notice to the builder, claiming the refund of the amounts paid along with interest and any other damages. You can also file a consumer complaint on the grounds of deficiency in service as defined under the Consumer Protection Act, 1986 against the builder. You’re required to file a written complaint in the consumer dispute redressal forum set up under the act. This case can be filed at three different levels: district, state and national, depending on the value of a property or the amount of damage suffered.
If there is any fraud involved like the builder misrepresented the buyer to sell any flat, civil and criminal proceedings can be initiated in such cases.
Claim Your Share
If the builder assured you that you’ll get the possession of your flat within the stipulated time-frame, you can claim the money spent to buy alternative accommodation. But, this is only applicable if you’re a first time home buyer. You are also free to claim the interest on the payment that has been made till date.
Claim for Indirect Losses
You need to have strong proof in order to claim your indirect losses. You’re only liable to claim for the loss you’ve suffered if you are able to prove it with a strong evidence. It is required so that you can fight the case against the builder or developer in consumer court.
There are few additional provisions which you as a buyer should be aware of. For instance, under the Domestic Building Contracts Act 1955, the builder has to provide the warranties as follows:
- Construction work would be completed within the given time period.
- Work will be carried out in a legal manner with reasonable care.
- Only high-quality materials will be used by the builder.
- Work progress will be carried out in accordance with plan and specifications mentioned in the contract.
So, you must have a formal written contract which consists of information like start and completion date, details of progress payment, the specification for your new home. Make sure you read your contract and fully understand its contents. Most importantly, check the builder’s financial credibility.
Barnala Developers is a reliable and prominent builder known for creating and delivering homes on time. Green Lotus Avenue is the first ever green residential project in Zirakpur developed by Barnala developers. Approved by 21 leading banks/financial institutions of India, this project is also certified by Indian Green Building Certification.
For any queries regarding possession, please contact us on 9569111222 or you can also drop us a mail at email@example.com