Delay of possession legal notice

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RERA gives two options to house buyers in case of delayed possession. The first option is to get interest on delayed possession. The second option is to get the complete refund amount along with the appropriate interest amount. 

Delay in the possession of flat and apartment property is a common occurrence. When a builder fails to deliver the property on time, it provides grounds for the buyer or allottee to initiate legal action. 

If the builder delays property possession for the purchaser, the first step should ideally be to send a legal notice to the builder urging them to hasten up the process or demand compensation for the delay they have caused. 

When to send Builders a Legal Notice?

You can send builders a legal notice in several cases, including the following:

• When the builder fails to deliver the possession even after the delivery due date.

• If the builder fails to finish construction even post the promised due date, leading to delayed possession.

• When the builder asks for an amount higher than the amount stated in the agreement.

• If the builder doesn’t register the flat or unit in the purchaser’s name even after full payment has been made by the purchaser, causing delay in property possession.

• When the builder uses construction materials that are of inferior quality and not appropriate. 

• Failure on the part of the builder to deliver amenities and facilities as per the promised terms and conditions at the time of sale.

• In any other case wherein the builder doesn’t deliver the anticipated service.

What are Consequences of Delayed Possession by Builder?

Under the RERA Act 2016, the following are the consequences and 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 in such a case, he has to refund the amount received from the buyer, along with interest. 

• The interest rate is 10% of the buyer's investment. If the builder fails to do so, 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 receive 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 finally handed over entirely.

What Legal Actions can be taken against a Builder?

The following are some legal common actions that can be taken against the builder if they failure to provide possession as per the terms and conditions agreed upon:

• Legal Notice Against Builder: You can seek out a lawyer’s help to draft a formal notice against the builder.

• Complaint Filing: You can file a complaint with the customer forums and regulatory bodies for the delay in the property’s possession.

• Criminal Complaint: In case of fraud, misrepresentation or other criminal activities by the builder, you can file a criminal complaint.

• Civil Suit: In case of breach of contract, departure from consented plans or non-provision of amenities agreed upon, a civil suit can be lodged to claim damages. 

• Arbitration: If the builder agreement contains a clause for arbitration, then arbitration proceedings can be initiated for the disputes.

• Claiming Refund: If the builder refuses to hand over the possession or fails to perform necessary obligations as per the contract, then you can claim refund.

Frequently Asked Questions (FAQs)

Q1. What happens if builder delays possession?

A. In case of delay in possession, the buyer has two options. First, they can terminate the contract and receive a full refund with interest. Second, they can carry on with the project and claim compensation for delay.

Q2. Where can I find the RERA legal notice format for legal notice to builder for delay in possession format?

A. You can find it on Registrationwala. Visit the official website of Registrationwala. Then, go to Legal Documents and search for ‘Delay of possession legal notice’ under ‘Format and Forms’.

Q3. What is a delayed penalty in real estate?

A. In real estate, a delayed penalty refers to compensation a builder is obligated to pay to the purchase for failing to deliver possession of property by the date agreed upon. 

Q4. What can I do if the builder doesn’t deliver me the flat possession by the due date?

A. You can send a letter to builder for delay in possession of flat. For delayed possession letter format for flat, you can use Registrationwala’s sample format for reference. 

Q5. What can I do if I don’t receive my flat’s possession letter from builder?

A. You can file a complaint with RERA or approach the consumer court if the builder fails to provide the possession letter of flat by the promised due date. 

Disclaimer: The legal notice format provided by Registrationwala serves as a sample format and is intended solely for reference purposes. We recommend consulting with a legal professional to draft the legal notice in accordance with the applicable legal statutes.