Home Possession Delays: Consequences for Buyers and Their Legal Rights

The process of owning a home is a dream for most people, who plan to own one after several years of financial planning. The joy of holding the key to your house is the culmination of all that you have done. It is quite unfortunate when such a moment becomes one of frustration due to home possession delay.

Home possession delay in India is quite common when it comes to developers who are dealing with property owners. Although sometimes the reasons behind the delay might be genuine, in other situations, the effects caused by delayed possession of property are not pleasant. It is always good to understand one’s rights when faced with property possession delay.

Financial Burden and Risks of Home Possession Delays 

Failure to give possession of the property to the owner on the predetermined date results in many other issues besides being inconvenient.

Firstly, investors keep paying EMIs for their mortgage loans and at the same time rent since they are unable to reside in their new property. Thus, this brings financial strain upon families.

Secondly, delayed possession of property affects one’s future plans and dreams since people may have to postpone many of them due to uncertainty.

In some cases, buyers purchase homes as investments. A prolonged property possession delay may prevent them from earning rental income or taking advantage of favorable market conditions.

Top Reasons of Delayed Possession of Property 

A number of reasons may contribute to the delay in handing over possession by builder:

: Lack of finance or financial mismanagement

: Delay in getting necessary government approvals

: Construction related issues

: Lack of labor

: Dispute related to land/project

Market related issues

Though unexpected situations can cause such delays, the buyers must not be made to suffer due to these.

Legal Rights of Homebuyers Facing Property Possession Delays 

Fortunately, nowadays homebuyers have much more rights than before thanks to the real estate regulation and development act, 2016 (RERA).

Property possession legal rights of buyers include receiving proper information about the project, right to possession of property and claiming compensation from the builder in case he/she fails to fulfill the promise.

According to RERA, builders should complete the construction within the stipulated time period. In case of non-performance within this period without any genuine reason, one can approach the relevant state authority for his/her right.

It is important to know about your property possession legal rights as many buyers don’t know about them till the delays reach a critical stage.

When Can Homebuyers Claim a Refund for Delayed Possession? 

One of the biggest questions raised by consumers is: Can I get refund for delayed possession?

In most cases, the answer is yes.

Where there has been a considerable delay and the consumer does not want to wait for the project to be completed, then under RERA, the buyer can demand refund along with interest. The consumer court has time and again found in favor of the consumers if there has been any delay in providing possession.

But whether you can claim a refund depends on many other factors, which include:

: The length of the delay

: Contract b/w the developer and the buyer

: Reason for the delay

: Legal provisions

Legal Steps to Follow After a Property Possession Delay 

If there is a delay in handing over possession by builder, then one should not depend only upon verbal assurances. One must do the following things.

The first thing one must do is gather all the documentation. Documentation includes any receipt, contract, email exchange, project updates, and other important things. This can help you a lot when you want to get involved in any legal matter.

After all of that, you can ask for the justification why the delay happened through writing to the builder & if you don’t like the response, you can file a complaint with the state RERA authority.

CONCLUSION

A home possession delay can be both mentally and monetarily taxing, particularly if the people involved have put everything they’ve earned into the purchase. Whether you’re dealing with property possession delay or are concerned about a delayed possession by the builder, you should know what your rights are in such a situation to protect your hard-earned money from losses.

And if you are thinking about, “Can I get refund for delayed possession?” then know that there are legal actions one can take to address property possession delays. With knowledge of your property possession legal rights and taking proper steps in time, you will be able to resolve the issue.

After all, owning a home is something that everyone should enjoy with pride!