Delay of possession legal notice
RERA gives two options to house buyers in case of delayed possession. First, get the interest on delayed possession or second is to get the complete refund amount along with the interest. Delay in the possession of flat and apartment property and allotted is a common occurrence.
Also, it is a common ground on which a property buyer or allottee usually relies in case of delayed possession. They can take legal action against the builder, developer or promoter.
What if the Builder Delays Possession?
Under the RERA Act, 2016, the following are the penalties for delay in possession:
- The customer can file a complaint with the adjudicating officer or authority, appointed under the legislation.
- If the promoter fails to complete the project within the specific time period as per the sale agreement, or if he delayed the possession of the property. Then he has to refund the amount received from the buyer, with interest.
- The interest rate is decided, 10% of the buyer's investment. If the builder fails it, then he will have to pay a fine of 10% of the project's estimated cost or imprisonment for up to 3 years, or both.
- If the builder decides to change the project's possession date, the buyer has the legal right to withdraw the amount and receives a refund of the paid amount within 45 days.
- If the buyer does not withdraw the property possession, the builder has to pay compensation to the buyer for the delay in the form of monthly interest until the property is handed over.