Every homebuyer dreams to move into his/her property but unfortunately, this wait gets longer for some buyers. There can be many reasons behind this, but the non-mentioning of possession date on the agreement is also an important factor. However, the inception of the Real Estate Regulatory Act i.e. RERA has come to rescue the homebuyers and this blog post helps you know-how. So, scroll down the page and read more.
1. What is a Possession Date?
Possession date is one which the developer handovers unit to the prospect or the buyer and the RERA clearly states that it is mandatory to mention the same on the home purchase agreement. This date is the completion date from a few months or years from the execution of an agreement in favour of the homebuyer. On the said date the developer finishes the construction work and takes all the required clearances from the concerned authorities.
In short, the homebuyer gets the right to demand property possession from this date.
2. Factors that determine Possession Date
The availability of construction material and worker is one of the reasons behind the delay in possession date. The developer has to ensure and manage the presence of both the above-mentioned factors as construction work is impossible to be carried out without these two. The unavailability of the workforce and raw material can cause a huge delay in the completion of projects and it reflects in the delay of possession date.
Another factor that determines the possession date is the inflow of funds. The insufficient funds, short inflow of cash and financial crunch extends the possession date. The fluctuations in cash flow depend upon the market conditions such as high/low demand for properties.
Clearances from the concerned authorities also determine the delay in possession date. This is the major problem faced by the developer. However, the Union Ministry for Environment, Forest and Climate Change [MoEFCC] has proposed cut in clearance time as it will prove beneficial for both the developers and the buyers.
3. Action Homebuyers can initiate in the absence of Possession Date in Agreement
The court has considered cases where the possession date is not mentioned in the home purchase agreement and has also given a verdict at times. Before the inception of the RERA Act, there was no proper guideline about how to deal with this situation but now things have changed as the homebuyer can move to consumer court or RERA tribunal against the developer for not mentioning possession date in the agreement.
The buyer can challenge the same in an appellate tribunal within 2 months in case he/she is not satisfied with the development. After this, the next appeal can be filed in the high court of the concerned state.
4. Important things Homebuyers must Remember about Possession Date
Firstly, the buyer must invest in RERA registered projects and should draft the agreement online. This should be examined by a lawyer and must fit in the RERA guidelines.
Secondly, the homebuyer must examine the possession date and the grace period which should not exceed six months from the possession date mentioned in the home purchase agreement.
The mentioning of possession date in the home purchase agreement is beneficial for the homebuyers as a person knows about the approx date for moving into a new home.