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prespective buyer (Software Engineer)     04 January 2012

Sale of agreement for apartment and delay in construction

Hello All,

 I have booked an apartment  in August, 2011. At that time builder had just started the construction. So I paid 15% percent of the total cost as per the standard procedure and get the agreement of sale. Builder promised to handover the apartment by Feb, 2012. It is already Jan, 2012, but hes not even constructed  beyond car parking. For the remaining amount bank (SBI) has also sanctioned the loan.

I have double checked with the lawyers, land title is clean.

Folloing is the glitch:

According to the aprroved plan, he can only construct three floors, but he wants to contruct four floors. Although fourth floor is not approved, he wants to go ahead with that. But there are neighbors, who does not want to get the apartment constructed in their neghbor, so they keep on complaining to government officals that the project plan is not approved. Because of this he is not going ahead with the constructions, and my money is stuck with him.

Can you please suggest what options I have now.

Your respnse will be highly appreciated. I am in bangalore, I would also like to get the counsel personally, so that I can show the agreement of sale.



 1 Replies

G.Padmanabhan (Advocate)     04 January 2012

Ordinarily in cases such as yours, 3 parties are involved. The land owner, the builder and the buyer. Since the builder concieves the project, the land owner ordinarily gives power ot attorney to the builder to register UDS in favour of the buyer on his/her behalf. The builder then enters into a construction agreement with the buyer. Legally the builder's role is that of a construction contractor. He is to construct as per the specifications and terms mentioned in the building/construction agreement with the buyer. If the land owner/Builder (as his POA) has already sold all the land (in the form of UDS), there is no further space to offer to additional buyers. In simple terms, all those buyers who have bought UDS as per the approved plan hold collective ownership over the land where the apartment block is being put up. 

Read carefully the terms of the builder's agreement that you entered with the builder

The buyer may sue the builder for specific performance of his obligations if the terms of the agreement so provide.

If there is any penalty clause for delay in the construction schedule, you may invoke that provision against the builder to seek monetary compensation for delay.

In extreme cases, after carefully considering the economic implications, the buyers may collectively rescind the construction contract.

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