How To Deal With Project Delays
The Aggarwal's have been waiting for possession of their apartment in Pune for close to three years now. Not just them, there are lakhs of buyers across the country who have been rendered helpless due to sluggish development activities. And, it is not the developer who falters in every case, there could be various factors that can lead to construction delays - like delay in government approvals, delay in material supply or even political instability. In fact, construction-delays have been regarded as a global phenomenon and is not just confined to India.
Although there is no clear-cut way to safeguard you from construction delays, it is wise to actively look for early warning signs and follow basic steps to help you sail smoothly through the situation. Here’s what you should do.
Developer’s background check
Carry out background verification of the developer and analyse the track record of his past project deliveries. Get in touch with other buyers to understand the nature and market of credibility of the developers.
Always seek details of the construction schedule from the builder along with regular construction progress reports. Request for copy of project-layouts which are duly stamped by appropriate local authorities.
Do your math
If a delay is imminent, evaluate the amount you need to spend additionally every month, in order to understand if you are financially stretched.
Other ways to tackle delays
- Make sure you verify the necessary documents pertaining to municipal corporations, declarations as well as sale deed from the previous owners to other financial details of the project.
- It is advisable to consult a lawyer to understand the intricacies of your issue. Send a mail to the developer expressing your demands and grievances.
- Scrutinise the buyer agreement thoroughly including the terms and conditions, legal implications for all parties involved as well as clauses - which protect the buyer rights and safeguard the developer.
- Claim interest on the payment made till date, seek construction progress reports and claim payments for construction-linked property bookings.
- Check if the project has received all regulatory clearances. Project delays mostly happen due to lack of funds, if possible check if the builder has enough funds.
- Buyers have a right to demand a refund when the project is delayed beyond the stipulated period. For instance, the Section 8 of the Maharashtra Ownership Flat Act 1963 makes a builder liable to refund the money obtained from a consumer with nine per cent of simple interest.
- Finally, you can file a case at Consumer Disputes Redressal Commission at district, state and national levels.
Tags: Buyers, Project Delays, Finance, makaaniq, legal remedies for delays, dispute redressal, project construction updates