RERA: No possession date in builder buyer agreement


A person while purchasing the flat or apartment always forsees that he will get the possession within 2 or 3 years. The builder while selling apartment lures the buyer by making false promises of providing possession within a year or two. On such promises the buyer enters into an agreement where the builder deliberately mentions vague clauses in the Builder Buyer Agreement in order to evade liability.

One of the few issues before the homebuyer is that there is no exact possession date mentioned in the Builder Buyer Agreement neither the agreement has a date from which one can calculate the date of possession. Now developers are trying to escape laws by not mentioning the date.

Now the Maha Rera Tribunal has overruled the judgment passed by the Maha RERA Chairman stating the developers will be responsible for delayed possession even if the possession date is mentioned in the buyer agreement/sale agreement.

In one the of the case before the Tribunal wherein the homebuyer was not able claim relief under section of 18 the RERA Act due to absence to possession date in the Builder Buyer Agreement. The Tribunal ordered “The cause of action claiming possession even if the date of possession is not mentioned in the agreement and the project being registered with the MahaRERA is becoming a recurring course of action. The allottees right to claim money back or claim interest or compensation is a recurring action and will not be eclipsed if the date of possession is suppressed”.

Further the tribunal stated “The complainant is entitled to receive the interest as compensation”.

Now this order passed by the MahaRERA Tribunal will be great relief for the homebuyer who have been cheated by the hands of the developers where the possession date is not mentioned. Further this will provide great clarity to RERA for adjudicating similar disputes.

Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.

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