Construction delay – Options for the property buyer

A delay in the delivery of possession of a building is one of the most commonly faced and annoying problems for a property buyer.Any person can file a complaint against the builder, developer, housing with the consumer court under the following circumstances:

1. Delivered a house that does not comply with the specifications agreed upon.
2. Did not provide for free parking space within the compound / complex.
3. Charged higher than agreed amount.
4. Did not provide for enough ventilation and light.
5. Did not provide for water storage tank.
6. Did not form co-operative housing society and handed it over to its members.
7. Did not give a receipt against the paid amount.
8. Delivered a poor quality construction.
9. Did not deliver the house within the agreed time limit. If time limit not mentioned, it is assumed that the construction will be finished within maximum of 2 years from the date of start of work.
10. Did not give accounts for the expenses against which the builder has collected money

 Legal Remedies

1. If the builder delays the completion of the construction beyond the stipulated time, you are entitled as a property buyer to seek a refund from the builder. As per the law, you are entitled to take action for delays.
2. If you are buying the property for personal use, you can file a case in the consumer dispute redressal commission. Any dispute over 20 lakhs can be directly filed before the State Commission and any dispute over 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District.
3. There are special provisions in some states for the benefit of consumers. For example, if you are in Maharashtra, you can get remedy through Section 8 of the Maharashtra Ownership Flat Act 1963, which makes the builder liable to refund the money obtained from a consumer with interest if he is unable to justify non-completion or delaying possession of his project.This section clearly works to safeguard the interest of the consumer and it is the duty of the builders to complete the construction on time.
4. There are some additional provisions which you should be aware of. For example, the Domestic Building Contracts Act 1995 states that the builder has given the following warranties –

(a) That all the work would be completed on time

(b) That  all work will be carried out in accordance with the plans and specifications set out in the contract

(c) That all material to be supplied by the builder will be of a high quality (d) That the work will be done in a legal manner with reasonable care and skill, and

(e) when the work is completed, the home will be fit for occupation.

Send a legal notice to builder demanding refund of the advance amount paid, interest, damage and legal cost. Once a legal notice is sent, the builder may take action to solve the problem, and you can save the needless time and expense involved in going to court