Answer By law4u team
In case of a delay in project completion, homebuyers in India have several rights and remedies under the Real Estate (Regulation and Development) Act, 2016 (RERA) and other legal frameworks. Here’s a detailed overview of these rights: 1. Right to Timely Delivery: Homebuyers have the right to expect timely delivery of the property as per the agreed-upon possession date specified in the sale agreement or builder-buyer agreement. RERA mandates that developers must deliver the project within the time frame specified in the agreement. 2. Right to Compensation: If there is a delay in the project completion, homebuyers are entitled to compensation. Under RERA, developers are required to compensate buyers for any delay in delivery beyond the agreed possession date. The compensation typically includes interest on the amount paid by the homebuyer for the period of delay. 3. Right to a Refund: If the delay is significant and the buyer is not interested in continuing with the project, they have the right to seek a refund of the amount paid along with interest. This refund should include the principal amount and interest accrued due to the delay. 4. Right to Escrow Account: Under RERA, developers are required to deposit 70% of the funds collected from homebuyers into an escrow account. This ensures that the funds are used exclusively for the construction and completion of the project, reducing the likelihood of delays caused by misallocation of funds. 5. Right to Transparency: Homebuyers have the right to transparency regarding the project’s status. Developers are required to provide regular updates on the progress of the project. Under RERA, developers must upload project details and progress reports on the RERA website. 6. Right to Quality of Construction: Even if there is a delay, the homebuyer has the right to ensure that the quality of construction meets the promised standards. Developers are obligated to adhere to the construction quality standards specified in the agreement. 7. Right to Approach the RERA Authority: If a homebuyer faces delays or issues with the project, they can file a complaint with the State RERA Authority. RERA provides a platform for addressing grievances related to project delays, non-compliance, and other issues. 8. Right to Legal Recourse: In addition to RERA, homebuyers have the option to pursue legal action against the developer for breach of contract. They can file a case in consumer courts or civil courts for recovery of amounts paid, compensation for delays, and other legal remedies. 9. Right to Possession of the Property: Homebuyers have the right to take possession of the property once the project is completed. If there is a delay, they have the right to claim possession as per the revised schedule or seek compensation for the delay. 10. Right to Correct Defects: In case of defects in the property discovered after possession, homebuyers have the right to request the developer to rectify these defects. Developers are generally required to address such defects within a specified period. 11. Right to Information: Homebuyers have the right to be informed about the status of the project, reasons for the delay, and revised timelines. Developers must provide this information in a timely and transparent manner. 12. Right to Additional Facilities: In case of delays, developers may be required to provide additional facilities or upgrades to the property as a form of compensation or to make up for the inconvenience caused by the delay. Conclusion: The rights of homebuyers in the event of a delay in project completion are designed to protect their interests and ensure that developers fulfill their contractual obligations. Under RERA and other legal provisions, homebuyers have avenues for compensation, refunds, and legal recourse, ensuring that they are not left at a disadvantage due to delays in property delivery.
