Effects of delayed possession! Beware

 

Effects of delayed possession

In recent times, cases of delayed possession due to unreasonable reasons have gradually increased. The buyers are delayed after investing a hefty amount in their property, and the builder does not follow the given timelines. Clients must be aware of the laws of the consumer forum in such cases.

If the builder fails to deliver the project on time, it can lead to heavy punishments and fines. The effects of delayed possession are dangerous and might ruin the life of a builder. Let us have a keen look at the details further below:

RERA rules for delayed possession

According to the RERA act of 2016, buyers can send notice to the promoters or builders for not handing over the project on time. The builders might be forced to terminate the event and process the entire refund of money. In such cases, the builder is liable to return the money to the client along with the interest charged on it.

If not, then the builder might continue building the project but giving compensation to the client for delayed possession. The client can charge compensation for the delay of every month till property possession.

Late possession penalty

Under the RERA rules, the effects of delayed possession for the promoters are heavy. They might be imprisoned for a three-year term or will have to pay 10% of the initial project cost. The developers will also have to identify the defects on the structures that might arise within five years of project possession without charging from the clients.

The recent judgment on delay in delivery of possession of the property

According to the Supreme Court's verdict recently, the flat buyers are eligible for compensation for delaying the handing of property possession and failing to fulfil the terms and agreements designed by the promoters.

The total amount of compensation will be calculated upon the entire money invested in the property. It shall be executed from the date of expiry of thirty-six months from the handing of the respective possession. The amount will be in addition to the money credited to the developer at the rate of five rupees per square feet every month. The court also stated that the developers must pay the amount within one month of the judgment.

Delayed possession can impose extreme and harsh cases on the promoters and builders. It can also lead to imprisonment and might ruin their life as a promoter. Therefore both the developer and client should abide by the terms of the agreement between them. They must follow the guidelines stated by RERA.