It's every homebuyer's worst nightmare to face the long halt delay in possession of their dream house. Because of this, the homebuyer suffers not only economically but also mentally. Therefore, in this blog, PropertyAngel will discuss what you as a homebuyer can do if your real estate project is delayed.
Firstly, it's important to understand the reasons behind delayed projects. The most common reasons include poor project management, lack of funds, delays in obtaining permits and approvals, and legal disputes. Regardless of the reason, homebuyers have the right to take legal action to protect their interests.
The Legal Route: RERA, NCLT, and CPA
The Real Estate Regulation and Development Act (RERA), passed in 2016, protects homebuyers in case of delayed projects. RERA aims to regulate the real estate sector and ensure timely completion of projects, and it applies to all states and union territories in India. It mentions a few of the most important roles of a real estate regulator, which are:
Also, homebuyers can file a complaint with the National Company Law Tribunal (NCLT). The NCLT has the power to appoint an administrator to take control of the project and ensure its timely completion. Additionally, the NCLT can order the developer to compensate the homebuyers for the delay.
Apart from RERA and NCLT, homebuyers can take legal action under the Consumer Protection Act (CPA) as well. The CPA gives consumers the right to seek compensation for any deficiency in services or goods. If a developer fails to deliver a home within the promised time frame, homebuyers can file a complaint with the appropriate consumer court.
Should You Sell the Property?
This is the first question that comes to mind for a homebuyer who is stuck in a delayed project. Because you're mentally and financially stressed due to such a big delay, the best option may be to sell the property. But it isn't as easy as it looks.
All these factors make finding a new buyer nearly impossible, as no one would be willing to purchase a real estate property with so many issues and problems.
Should You Continue To Pay for EMIs?
This is a common question, as you might be confused about whether you should continue paying your EMIs for the home loan or stop. There is also concern that if you stop paying your home loan EMIs, your credit score will suffer, and your financial credibility in the market will suffer.
However, according to some experts, homebuyers shouldn't stop paying their EMIs even if the project is delayed. The main reason for this is that financial institutions from which homebuyers may have availed their home loan may drag them to court and, in addition, charge homebuyers interest on the EMI amounts deferred by them.
If you're stuck in a delayed project, your first option is to go the legal route and file a consumer complaint under RERA, NCLT, or CPA.
If you're considering selling your house, it will be tough for unfavourable reasons.
According to some experts, as a homebuyer, you shouldn't stop paying your EMIs.
PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.