It is a big decision to buy a home. You invest a major part of your hard earned money into this one huge decision. But it becomes really disheartening and frustrating when you do not get the possession of your dream home on time. The delay in the possession can be because of various reasons. Some of these have been enlisted as follows:
- Pending municipal approvals or dispute
- Rising property prices
- The developer going out of funds or the bank refusing to finance the project, etc.
The delay in possession can cause loss to the home buyer. The experts have classified these losses into two categories: direct losses, i.e. loss of money
because of the delayed possession of the flat; and indirect losses, i.e. they can’t be evaluated or quantified but tend to arise because of the trauma. For example, visiting the construction site every now and then to talk to the builder or assess the situation.
Here is information on what actions you can take if a builder delays the possession of your Home:
1.) First and foremost, you have the right to file a consumer complaint on the grounds of deficiency in service as has been defined in the(CPA) Consumer Protection Act (1986) against the builder. The written complaint is to be filed prior to the setup of the appropriate consumer redressal forum under the CPA. A home buyer can claim for their losses even if the possession has been delayed by a day. When a legal action is taken against the builder, the developer comes under trouble as the buyer can claim money required to purchase an alternate accommodation in the respective area or they can even claim the money they have deposited with the builder.
2.) In case a home buyer is sure that he/she will receive the possession of their flat within the next few months or years, they can claim the money spent by them to pay for the rent of the alternative accommodation. This is applicable in case the home buyer’s building is being redeveloped or if he/ she is a buying home for the first time. As a buyer, you can also claim the interest on the payment of the flat that has been made till date in case of delayed possession. According to the Maharashtra Ownership of Flats Act (1963), in case of delayed possession, a developer will have to refund the amount received along with 9% of simple interest.
3.) For claiming the indirect losses, you need to prove what all loses you have suffered. For example, a home buyer can qualify to avail the indirect loss if he/she was promised the possession of their flat before their marriage but because of whatsoever reason the possession was delayed that lead to your marriage being called off. As long as the evidence is strong and sufficient enough to be proven, you can fight the case against the developer/ builder for delaying the possession of your flat in a consumer court. It is very essential for you, as a home buyer and as a consumer to be well aware of your rights.