Law to keep a check on the intentional delay caused by builders in delivering the housing projects.
Abhinav
(Querist) 02 April 2015
This query is : Resolved
Hello Experts,
Please confirm if there is a provision in Law to push a developer to deliver the Housing projects on time. The Penalty clause in the builder buyer agreements is just a formality to satisfy the Law. Ideally the developers commit a time line of 3 years in all the cases which is acceptable in case of a new launch / soft launch. However in case of Resale also they commit the timeline of 3 years which doesn’t seem logical as the structure was already under construction for last 3 years, then why they need 3 years to hand over the possession.
Along with that in case of resale the builders are asking the buyers to sign a waiver stating that as they are buying the flat in resale they are not elegible for the penalty clause by the builder hence depriving them of the bare minimum relief on the delay (Is this practice legal?)
I was just curious to know if there is a PIL to check this as a normal salaried person is crushed between paying the EMIs & the House Rent till the time he / she gets the house to finally live in. Thus affecting their social and economic situation along with the future of their children as they suffer the same pain.
Thanks
Jayaraj Poojari
(Expert) 03 April 2015
A pertinent question is why would you buy a property that is unfit for immediate occupation and get yourself crushed between paying EMIs & rent? However, based on the facts mentioned, it seems that builders asking the buyers to sign a waiver seems illogical and you may fight it in appropriate Courts.
Guest
(Expert) 03 April 2015
Do you have any concern and if so in what way with the delay by the builder? If you have any personal problem, better discuss the same instead of making mention of general practice adopted by the builders.
Abhinav
(Querist) 03 April 2015
Respected Sir as a salaried person it's easy to buy a property which is under construction or is nearing construction as any ready to move in property will demand minimum 30% in black. It's a common practice by all the builders to stall construction work once they get approx 80% payment in ClP.
They same property if bought from builder is atleast 20% costly when compared to open market.
However the major point here is to have a regulator or law to check such practices in any case.
Abhinav
(Querist) 03 April 2015
Respected Dhingra Sir, the only concern I have is to validate if it's legal on builders part to get an affidavit from the new buyer (incase of a resale) stating that as I am a new buyer and not an alotee hence I will not demand any compensation if there is a delay in completion and handing over the possession of the property.
Some how I am not able to accept this fact that builders are drafting onesided agreements for their own benefits.
Guest
(Expert) 03 April 2015
You are still far off from discussiong your personal problem, whether facing delay or have signed the affidavit for no claim for compensation. If you have any concern with any such problem, the question arises, why you are compelled to sign such a binding affidavit. If signed that is a sort of your agreement with the builder, unless you are able to prove that you were made to sign that by force.
The law remains silent with eyes closed also until some wrong happens. So law moves on evidence and is dependant and bound by the terms of agreement, until that agreement is proved void or illegal.
If you see carefully the terms of agreement those are mostly favourable to the builder with uncertain provisions for completion for delay in construction of building and handing over of possesion. It is well known fact to almost every body the builders usually invest the money of the applicants in other profitable projects by stopping or badly delaying construction of already started projects.
So, it is always better to get the terms of proposed agreement modified or be got made in specific terms before signing an agreement. Law cannot be expected to come to your rescue if you are already bound by the terms dictated by the builder or affidavit signed, as that includes your own consent.
Abhinav
(Querist) 03 April 2015
Sir as far as I am concerned with gods grace I don't have any such problem till now. I have signed the agreements after reading and understanding them (known risk), it's just my curiosity to check if these practices are valid.
On the other hand, so many people are exploited by builders and they suffer a lot because of this.
Has any one ever understood the plight of those people and filed a PIL to atleast request and put a check on such practices. Atleast in case of extended delays the builders should pay amount equivalent to the rent paid by the buyer.
As I am an engineer and not a lawyer hence I am not aware of the developments in legal world, just wanted to stay updated about my rights as a citizen.
Once again thanks a ton for your valuable time
Guest
(Expert) 03 April 2015
Mr. Abhinav,
Once a query of academic nature is replied the querist starts raising unending supplementary queries to quence his thrist of knowledge, which wastes a lot of time on the part of experts without reason and rhyme. Not only that law students, instead of concentrating on their study materials try to find out easy way to solve their school exercies by rising such questions. So, the experts have decided not to entertain academic queries.
As such you would be welcome to ask only if you get any problem in your case, as in law only specific problems can be expected to have specific solutions.
Abhinav
(Querist) 03 April 2015
Dhingra Sir I completely understand that that's why I concluded the discussion as I realized how valuable your time is.
Thanks a lot for your time and guidance.
Guest
(Expert) 03 April 2015
You are welcome.
T. Kalaiselvan, Advocate
(Expert) 08 April 2015
Thus the query ended as an academic query and properly addressed by expert Mr. Dhingra.
