How the Buyers will Deal with Agreements without Possession Date

How the Buyers will Deal with Agreements without Possession Date

A lot of developers, in the past, have not mentioned the possession date in the agreement. Times have surely changed and there is a lot that home buyers can do, under RERA, in such cases when judgment passed have come out on favor of the homebuyers. Plenty of cases are an example of homebuyers facing delays in getting the possession of their property. In a lot of cases, it has so been that more than five or six years have passed by. Few developers have crossed the line by not mentioning the possession dates in the agreements they handed to the buyers, which leads to mental and financial distress for the home buyers. New launches project in Kolkata must be both HIRA and RERA approved for obtaining the registration number of the property against which one can claim rights if such issues are faced.

Possession Date

The possession date, commonly known as the completion date, is usually a few months or years from the date of entering into or executing the agreement in recommended by the flat buyers. It is the date when the builders complete the construction work of the building and attain the essential permissions from the local body/authority, for permitting the flat buyers to occupy the building. In short, it is the date from which the buyer has the right to demand the ownership of the flat from the developer. This date should be clearly mentioned in the agreement and is well-defined under the RERA regulations. Upcoming Residential Projects In Kolkata will have to mention the appropriate completion date before handing over the property.

Possession Date is determined on:

The possession date is determined on the time involved in carrying out construction work of the building, viability of materials and labor at the site and the permissions and approvals to be issued from concerned authorities. Under the new regulatory regime, it is essential that the date on which the home buyer should get possession of the unit must be mentioned. The real estate developer does not want to delay his project by not handing over possession on the specified date, as there are the RERA prescribes penalties for delayed possession. However, delays are usually caused by bureaucracy and red tape, the real estate developer is no one to blame in these cases and he will not be blamed for it was not his fault. Hence, developers are likely to add a generous safety margin to ensure that they are not penalized for delays that are not in their control. If there are no delays, the possession may be handed over earlier than the scheduled date.

Other factors that determine the ownership date are market conditions and accessibility of cash flow for the project. Industry experts point out that in the event of insufficiency of cash flows, the period of construction will extend and ultimately, the date of possession would be delayed. Adverse market conditions also affect the cash flow from buyers. On time payment for flat buyers is essential, as per the agreed schedule, which is of huge importance for completion. Property In Rajarhat is developing rapidly and deficit like these are uncommon, nevertheless if such happens you will still have the registration number to keep a check on your property.

 What the buyer will do if the completion dates are not mentioned

Various courts of law have considered the issue regarding no exact date for possession in the agreement is mentioned or not mentioning the date from which one can calculate the date of ownership. Earlier, there was no clarity on the reform for these kinds of issues. Now, home buyers can approach the consumer court or RERA and file a complaint concerning the promise made by the builder or concerning unreasonable delay. If the buyer is not pleased with the order, s/he can challenge it in the appellate tribunal, within 60 days. The next appeal against the order of the appellate tribunal can be filed in the high court of the respective states.

Important points the buyers should keep in mind

The home buyer should seek out projects registered under RERA to draft the agreement on the website and similarly HIRA for buying property in Rajarhat or Kolkata. This agreement must be checked by a lawyer, to verify whether it matches with the RERA. The customer should also check the date of possession mentioned in the agreement and the grace period as provided. Actually, six months should be the maximum grace period, from the date of possession specified in the agreement. The exact date of possession should be mentioned in the agreement of sale. Therefore, if it is not there, in a lot of cases, the deal was declared invalid. A specific clause in the agreement, known as the ‘compensation clause’ can also be included, while in case of failure to complete the project within the date mentioned in the agreement, the developer will be bound to pay a predetermined amount to the buyer each month.

Handing the possession date in writing assures the buyers that the developer will ensure delivery on time as per the agreement and that the investment they made is safe. The first step is that the buyer should do a background check on the builder and scrutinize all documents, especially details about the possession date, before buying any property. The possession date should be between two-three years from the inception of the project, regardless of the size.

By LNN (Liyaans News Network)