• Right to rescind sale agreement for purchase of flat

I had booked a flat in Bangalore in an under construction project in 2014. I had paid 95% of flat value by Dec 2014 as the builder promised posession by August 2014. As per terms of sale agreement the possession date is August 2014 grace period was 6 months. As per terms of agreement, the project will have amenities like clubhouse, jogging track, swimming pool and covered car parking.

Though my flat is completed only in Jan 2017, the flat is in 3rd floor and lift is yet to be contructed. The other flats are till under construction and there is no light in the corridor in night. As such, I cannot give it on rent as the basic amenities are not there. I had made the final sale agreement in March 2016.

Now, 
i) Is it possible to rescind the contract and seek my payment back? As the mere completion of flat does not serve the purpose and without basic amenities the house is not fit for occupation.

ii) If rescission is not possible, can I claim interest from August 2015 till the time the amentities like lift,etc are made available?If yes, then at what rate of interest

Kindly advise.
Asked 7 years ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

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5 Answers

builder cannot give possession of the flat without completion of construction along with amenities.

if it has done you can claim compensation but cannot retract sale deed. builder is liable to pay interest on the sale amount from the date of completion of contract mentioned in sale agreement.

you can claim compensation for interest from march 2015 till the completion of construction, compensation for mental agony and cost of the case.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

you should file a case before consumer forum.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1) take possession of flat only after builder obtains occupation certificate

2) only if building is completed as per sanctioned plans would builder get occupation certificate

3) you are entitled for interest for delay in completion of project

4) the interest rate payable by builder would be same as charged by builder for delay in making payment by purchaser

5) don't cancel booking as most builders are facing financial constraints and unable to refund money

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

1. If you have taken possession then you may not be able to rescind the sale agreement or cancel the booking.

You may issue a legal notice to the builder for making payment towards delay in completion of construction and handing over possession.

You may also include in the legal notice the defects you found in the construction including non-provision of the amenities as promised in the sale agreement.

The compensation shall be the relief for this situation.

2. If rescission is not possible, can I claim interest from August 2015 till the time the amentities like lift,etc are made available?If yes, then at what rate of interest

You can issue a legal demand notice for the interest for the period of delay and interest on it till the time the amount is settled.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

1) you can be awarded interest at 12per cent per annum by the consumer forum on account of delay in delivery of possession by the builder

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

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