Anand (Manager) 05 October 2014

Property - need your help urgently!

Hi,

We have booked two flats in a Bangalore based builder in July 2012 by paying 20% of the total amount and the project was scheduled to be completed by end of 2015.

But, for my bad luck, the builder has only finished excavation work in 2 years and has stopped the construction work. Recently, we got to know that this particular builder completes every project only in a span of 8 to 10 years.

When asked the builder to cancel the flat, he says he would charge 25% of the total valuation as mentioned in the sale agreement, which is like we loosing the 20% of the sale agreement which is paid by us.

Also, if we still continue with the project and pay as per the schedule of the sale agreement then I am worried that we would be under the risk of loosing more money in case if the builder stops construction again as he is being doing repeatedly in the past.

Request you to please guide us on the above subject at the earliest.

We appreciate your help and support.

Thanks in advance.

Anand

Reply Follow

6 Replies

adv.raghavan (Advocate,9444674980) 05 October 2014

Update us with default clause in the sale agreement.

Jagdish Kumar (ADVOCATE) 05 October 2014

Please mention that under what terms you have sign the sale agreement.

shamataneja (Advocate) 05 October 2014

Dear Anand,

there is deficiency in service of the builder. you are advise to approach consumer court..

you are the consumer. there will be speedy recovery of the 20% of total amount paid by you to the builder. you can also claim interest and damages.

Advocate

Shama

Anand (Manager) 06 October 2014

Hi,

As asked kindly find a copy of the sale agreement attached.

Thanks for your reply.

Attached File : 331582261 11exaltus sale and construction agreemant.doc downloaded: 197 times

Adv Akhtar Ali Sheikh (Property Law Consultant) 11 October 2014

Invoke clause 15 ask for the refund. Though I have not read the whole document, it is a horrible document.

Better get away from him.

T. Kalaiselvan, Advocate (Advocate) 12 October 2014

@Anand: From the attached copy of the agreement it is noticed that the developer/builder shall in normal terms, complete the construction and hand over the apartment within 36 months from the date of agreement with a grace period of 9 months extended time. Since you have mentioned that the it is still in excavation stage, no doubt there no possibilities that the construction of the apartments will be done in due course of time, however, it will be too early for you to initiate any legal action in this regard, but you still can cancel the agreement citing any valid reason, over which the builder s liable to return the advance amount received after deducting the administrative charges alone and not the cost of 25% of sale consideration amount. If he does so, you may draw him into a proper consumer forum or civil court for further legal action.