In the last two decades, real estate is one of the mostthriving industries, with the demand for residential and commercial propertyincreasing day by day. There are anumber of builders and developers in the city who offer or promise specialfeatures to attract prospective buyers. However, there are some builders or developers who delay the completionof project and the buyers suffer mentally and financially. Buying a home for oneself is a major decisionin one’s lifetime.
No one should ever take a chance or gamble when theantecedents of the builder are not known. There are many builders who collectmoney from prospective buyers even before obtaining the required basicpermissions for construction and then disappear. In Goa, very often, the builder constructs onsomebody else’s property. The originalowner later often refuses to transfer his rights to the occupants of thebuilding. The legal battle for transferof rights between the buyers, builder and the owner of the land is a nightmare thatthe consumer has to go through. Thereare many cases where, even after 15 years, the flat has no proper title and thebuyer is stuck if he wants to move out of the state or the country.
A consumer doesn’t want to get into a legal tangle and justwants his flat in hand and the unscrupulous builders take advantage of thishelplessness. In case of delay, as there has been a breach of contract, thebuilder is liable to refund the amount paid with interest (for the period ofdelay) as there has been a breach of contract. A promoter, who constructs or intends to construct either commercial orresidential buildings, must specify in writing, the date by which possession ofthe flat is to be handed over.
Consider the financial implications of delayedpossession. Some agreements by buildersstate that in case the possession is delayed then the purchaser is entitled toa refund of his money with 9% interest from the day he or she has receivedit. But such an arrangement hardly makessense with the prices of flats having doubled by then. So giving up your flat for 9% interest to thebuilder does not make any sense.
Imagine a situation where you’ve booked a house in anapartment complex, while paying hefty EMIs and also the rent for the temporaryplace that you currently occupy. Any delay in getting into your own houseobviously means a financial loss. Oneway to protect yourself from the builder is to ensure that a penalty clause isput into your agreement for sale. Itcould be read something like “the builder has to pay you Rs.250 per day in theevent that the flat is not delivered as per stipulated date”.
The writer a social scientist and lawyer hasbeen a senior member for 10 years at the Consumer Court in Goa
