You are at liberty to pay with interest
you have paid over 80 per cent consideration to builder
transfer funds to builder account or send letter with cheque before he initiates cancellation procedure
Delayed 20% payment to builder and ready to repay with interest. Builder wants to cancel.
I have purchased a property in the payment plan of 90:10 from a reputed builder in Gurgaon. I paid the 80% amount of money on time and when I was about to pay the remaining 10 % there was news that the promoter of the builder was put in jail. I have kept money on hold for some time and agreed with the representative that I will bear the interest cost of delayed payment. Now the builder denies the option of repayment of pending amount interest and says he would cancel the unit. What does Rera says on this??
Asked 10 months ago in Property Law
Religion: Hindu
7 Answers
The payment made so far does not warrant cancellation of this sale unless the agreement so provides.
Since there is apparently provision for enal payment for delay in payment the agreement can not be cancelled.
So to protect your interest file a case before the consumer forum.
You can pay interest he can’t cancel if you are paying the same
You don't worry about RERA rules for this.
You issue a legal notice to the builder demanding execution of registered sale deed after accepting the balance of sale consideration amount, failing which you can institute a suit for specific performance of contract and drag the builder to civil court for relief and remedy.
- As per Sub-Section 1 of Section 13 of The Real Estate (Regulation and Development Act,), A builder will have to enter into an agreement to Sell with a home buyer, and then accept the booking amount which should not be more than 10%.
- Since, you have already paid 90 % , the balance amount should be paid at the time of registration of sale deed & possession of the property.
- Further, as you have stopped the remaining payment due to fault of the builder , and hence the builder cannot ask for interest and even cannot cancel the unit legally.
- You can file a complaint against the said builder before the Consumer forum or RERA .
Hi ,I believe you have a unit with M3M developer ..In your case you should transfer the instalment with delayed interest charges accumulated on your payment if you have not received any cancellation letter from the developer ..As per RERA provisions builder has to sent a reminder for payment followed with pre- cancellation and cancellation letter ..After cancellation builder can forfeit ten percent of sale consideration of unit and has to refund the balance amount within 90 days to the allotte ..Therfore sometimes developer restrict themselves from cancelling the units and keep on adding penalty charges until and unless they have alternative buyer for the unit ..For further discussion on provisions related to RERA ,Gurugram you can contact me in person ..Thank you
Dear Client,
In accordance with RERA Section 18(1), the promoter shall reimburse the buyer for the amount paid for the flat, property or plot, plus interest, if the promoter delays taking possession of the property or does not finish the project by the deadline specified in the sale agreement. Ten percent of the buyer's investment is charged as interest. A builder may be fined up to 10% of the anticipated cost of the real estate project, serve a period of imprisonment up to three years, or both in the event of non-compliance.
