Have purchased an apartment on the 6th Floor in a 36 storey under-construction apartment building. The builder has already asked for payment towards 36th slab. The possession date for the apartment is Dec 2021. Almost 24 months from now. Now the builder is asking for payment against Brickwork, internal & external plaster & plumbing which has been completed up to the 18th floor of the 36 storey tower. As per the payment schedule provided in the agreement, its stated as "On Completion of Brickwork" and "On Completion of Internal Plaster" etc. There is no mention that payment has to be made if the specified work is completed up to your floor. My question is can the builder ask for payment against these items even if they are partially completed? If yes, this means that the person owning the apartment on the higher floors will only be making the payments towards these items at the very end very close to possession date, thus saving them on the loan interest for almost 2 years.
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See if the terms of agreement is such that builder can raise invoice on completion of work of your floor then he can seek amount legally from you, you cannot deny payment of same as each owners shall be guided by different agreement.
So the agreement has to be studied carefully since the completion is in respect of your flat/floor or for complete building.
Completion shall be construed as ready to use. And if there is no mention of phase wise completion of BW and plaster than on completion of full building.
Builder demand is illegal, complain to RERA if builder force for payment.
It is necessary to peruse agreement entered into by you with builder to advice
2) builder can ask payment against these items even if work is partially completed
Actually, the payment should be made floor wise work completed and not bulk work of one side e:g just structure, bricks etc. You should have to make payment work completed by builder. Stick to agreement.
Please see the terms and conditions of the payment plan if builder is asking anything different to the agreed payment plan you may place your objections and you can take legal action as well but I will leave because you have purchased 6th floor and the plastering and other related work is being carried now and that is the reason that builder is asking that payment please see your payment plan carefully I believe that this has already included in the payment plan
You can refuse to pay and approach the consumer court for deficiency of service against him
The builder is not entitled to these demands
Completion of brickwork means completion of brick work of entire building and not of few floors
That would amount to demanding payment in advance which will be in violation of the payment schedule as agreed in registered agreement
This is certainly an unfair trade practice
Refuse the builder to pay any such demands and if the threatens you for the same then warn him that you will approach Rera
The builder cannot unilaterally alter the terms of the agreement
What is the use of an agreement then if the builder at his whims can change its terms which suits his needs?
Without reviewing the agreement it is difficult to provide a definitive view. However, provided the agreement does contain a provision which requires the works to be completed before the final payment is made, you may have good grounds to say that the builder is not entitled to payment on the basis that he has not completed the works. If however the builder has "substantially" completed the works then you may be on more of a sticky wicket (ie you can't withhold payment on the ground that he hasn't finished every last small item).
You go through the conditions of the sale agreement especially the clauses referred for payments to be made on different stages or on such events.
You cannot dispute the agreed conditions, hence you may decide an amicable solution to this instead of stretching the things which may not be in your favor.
1. Yes builder can ask for payment if it is mentioned on your agreement even if they are partially completed.
