Delays in Possession and Project Delivery: What Homebuyers Need to Know

Delays in handing over residential and commercial properties have been a major source of distress for buyers for years. However, with the introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA), buyers now enjoy stronger protections and clearer rights when projects are delayed.

What Causes Delays in Possession?

Delays can arise from various reasons such as financial difficulties faced by builders, regulatory approvals taking longer than expected, construction challenges, or even improper management of funds. Regardless of the cause, the impact on buyers is significant - financial strain, uncertainty, and loss of trust.

How Does RERA Protect Buyers?

RERA has transformed the real estate sector by making builders accountable for timely project delivery. Builders must register projects with RERA and clearly state the expected possession date. This date becomes legally binding.

Key protections under RERA include:

• Binding Timelines: Builders must deliver possession on or before the promised date.
  

• Compensation for Delay: Buyers are entitled to compensation, usually in the form of interest on the amount paid during the delay period.
  

• Option to Withdraw: If delays are excessive, buyers can opt to cancel the booking and receive a full refund with interest.
  

• Penalties for Builders: Builders who fail to comply may face fines and other legal consequences.
  

• Mandatory Communication: Builders must inform buyers about delays and reasons behind them.

Legal Remedies for Buyers

If possession is delayed, buyers can take the following steps:

• File a Complaint with RERA: The state RERA authority can intervene and order compensation or refund.

• Approach Consumer Forums: Buyers can also seek relief through consumer courts for deficiency of service.

• Claim Interest: Even if possession is eventually given, buyers can claim interest for the delayed period.

What Courts Say About Delays

Courts have consistently ruled that builders must adhere to reasonable possession timelines, even if the agreement is vague. They cannot evade liability by using ambiguous clauses or “best effort” language. Compensation is due for the delay period, and buyers’ rights remain protected.

Practical Steps for Buyers Facing Delays

1. Check Your Agreement: Understand the possession date and compensation terms.

2. Send a Notice: Inform the builder about the delay and demand action.

3. File a Complaint: Approach RERA or consumer forums with your grievance.

4. Consider Refund or Compensation: Decide whether to wait with interest or exit the project.

Conclusion

Delays in possession can be frustrating, but the law now empowers buyers to hold builders accountable. With RERA’s safeguards, buyers can claim compensation, seek refunds, and ensure timely delivery. If you face delays, act swiftly to protect your investment and peace of mind.