• Offer of possession for fit out period

My builder has offer me possession for fit out period and asked for final payment, builder dont have OC/CC and also basic things like wash bashing, kitchen sink, sanitary-ware hardware accessories and final touch has not given to flat. In my singed agreement it has written that "fit out period of one quarter will be commence from date of offer of possession and if allottee fails to take possession of flat then delay penalty will be charged and after 2 months allotment will be canceled" .
Kindly suggest is there any difference b/w "Offer of possession for fit out period" and "fit out period from date of offer of possession".Also if I will not accept "Offer of possession for fit out period" and wait for possession after OC then can builder apply delay charges on allottee is legal. What action I can take in this scenario.
Asked 8 years ago in Property Law
Religion: Hindu

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3 Answers

Builder cannot offer possession of flat till OC is issued

2) builder cannot charge flat purchaser penalty if he fails to take offer of fit out possession

3) builder can charge penalty if OC is issued and purchaser does not make full payment and treks possession of flat

4) no difference between offer of possession for fit out possession and fit out period from date of offer of possession

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

So buyers pay 100% for possession that is ‘temporary’. There is always the chance that the project could get rejected by the authority as being deficient in its amenities and service spaces. And the developer’s application for an Occupation Certificate gets dismissed. Your wait for your home gets even longer. And you have little bargaining power, because you just paid your developer the last 5% of your payment plan.

Developers in Noida region are offering ‘Fit-out’ letters to their customers, stating that they have applied for Completion/Occupation Certificate from the Noida Authority.

This is nothing but an exploitation of the emergency situation of the buyers who have been to wait very long to take possession of the flat/property. When in reality, their developer is just buying time. Also the developer gets to evade paying penalty as soon as you accept a ‘fit-out’ offer. In the eyes of any court, you willingly accepted possession, even if temporary and so that clock stops ticking on the developer.

It is your choice to accept the offer of possession for fit out period.

You are putting yourself at serious risk by choosing to enter a tower which in the eyes of the authority is not worthy of being granted an OC.

Apart from lift-breakdowns, buyers also report incidents of theft and eve-teasing as projects without OC usually lack adequate security. On one visit by the media team exploring the situation faced by the home buyers to a project in Noida that has offered fit-out possession, it was observed that the inner complex was not at all safe for people to enter. Construction material yet to be cleared and scaffolding was yet to come off. Electricity shafts were open and fire equipment was missing in the service areas. And in the flats, there were missing walls, exposed fittings in the ceilings and cracked floors. So if something is to go wrong, during this fit-out phase, the buck stops at you and not the developer.

Now you can decide about proceeding further or not.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

1.There is no difference between the two types of possession you have mentioned in legal parlance.

2.Since you have taken possession even beofre making full and final payment you have no grievance agaisnt the builder on this ground alone.

3.Howeevr after considerable period of possession the builder does not provide you with the basic amenities and other facilities then you can file case before the consumer forum for damages and possession.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

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