The letter of possession of the property by a builder fills the owner with unparalleled happiness. On the same side, the news of delay in the possession of property leaves the owner low-spirited. There is no surprise that delay in the possession of property has become noticeably recurrent in India. The time taken in the possession of property now often exceeds the total time utilised in the online research, recce, finalisation of the property and negotiations with builders.
Amongst the many consequences, the worst is that a real estate buyer ends up losing his/her money as EMIs on the home loan since he has to pay for a rented accommodation. Not to forget, if the buyer gets involved in the legitimacy that takes care of the on time possession of property, he would have to squander his time and efforts in the tedious legal battle. There is no denying that absence of regulator or stern rules in the real estate sector further worsens the situation. As a result, home buyers in India have to wait from minimum six years or more after investing their hard earned money. Well, the consequences of delayed possession have to be faced by builders as well since his goodwill in the market gets compromised.
However, the good news is that presently active Real Estate Regulation Act has already given Indian real estate its new regulator. RERA aims to bring clarity and protect the interests of buyers along by imposing penalties on culpable builders. In case, the possession of your property is getting delayed by your real estate developer, the below handy guide will guide you regarding your rights. Let’s understand what is covered under RERA and how it is helpful.
Below mentioned provisions in RERA assure the possession of your property on time.
- Now the promoter of real estate property has to provide an affidavit stating the time period within which the project or a particular phase will be executed.
- The ‘agreement of sale’ will have to specifically carry the date of possession and the rate of interest in the case the or developer fails to provide possession on time.
- The promoter has to provide the land, ‘a legal title’. He has to assure that the proposed development has legally valid documents with authentication of such title to ensure that the same piece of land is not owned by another person. Such hindrances prevent the promoter’s to transfer the property title. Thus, a written affidavit needs to be provided by the promoter in such cases.
- RERA also makes it compulsory for the developer to maintain a separate account in the scheduled bank to cover the land cost and cost of construction. 70 percent of the amount realised for the real estate project from the buyers shall be deposited in that account.
- If the real estate developer doesn’t abide by the mentioned rules, he will lose the registration of the project and become liable to be imprisoned for a term which may extend up to three years or with fine which may extend up to a further ten per cent of the estimated cost of the real estate project, or both.
It is always sagacious to stay abreast of latest developments in real estate sector to get a possession of your property on time.