Delay in receiving the apartment or flat that was purchased and allotted is a frequent occurrence in the real estate market. I have seen many of my friends and relatives become a victim of such delays. But I remember one such case of my cousin, where she actually decided to demand a penalty for the delayed possession and she even got reimbursed for the same. Until then I always wondered “can allottee demand delay penalty after builder offering possession?”.
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Can allottee demand delay penalty after builder offerred possession?
Yes, they can. In fact, it is one of the main defences used by property buyers or allottees in legal actions against builders, developers, or promoters, and it frequently results in success. When the parties' sale agreement, such as a builder-buyer agreement, specifies the precise date or time by which possession will be offered, the length of the delay can be measured. If the buyer or allottee has already paid a sizeable portion of the total purchase price for the relevant property and has largely complied with the terms of the agreement up until the point of starting legal action, the law is likely to lean more in favour of the buyer or allottee the longer the wait.
So, if you’re wondering can we demand delay penalty after offer of possession, the answer is yes, we definitely can. We can make a claim under the RERA Act, 2016, or we can move the builder's case from a CDRC to the State Real Estate Regulatory Authority if they take too long to deliver your property. In accordance with the RERA Act, a builder who delays the possession of apartments must pay 10% interest on the property's worth.
For builders that violate the RERA Act, there is a three-year maximum sentence in prison, a fine that can reach 10% of the anticipated cost of the real estate project, or both, depending on whether the buyer wants to take the builder to court.
RERA moved in to defend the interests of the buyers and remove unscrupulous real estate companies from the market because delays in project possession had become the norm. This has really helped the buyers in being properly compensated for such delays and losses because of the delays.
I hope this explains can allottee demand delay penalty after builder offering possession or not.
Read More: What is possession delay penalty as per RERA? How to file case against property possession delay?Your Feedback Matters! How was this Answer?
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Can Allottee Demand Delay Penalty After Builder Offering Possession?
Tanmay
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2 Year
2022-11-30T11:00:06+00:00 2022-11-30T11:00:06+00:00Comment
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