What were terms and conditions of allotment
Is there a clause that late payment would be levied for delay in making payment
If so builder can levy late payment charges
It is in your interest to make payment and take possession of flat
Late payment charges by builder
I bought a flat in an aprtment during pre-launch in 2013 & the construction was completed in 2017. I've been in regular touch with the builder coz I wanted to sell my flat & not register it. The builder sent a mail in Feb 2017 that the flat is ready & you can make the payment & take possession. But since I wanted to sell it I haven't paid the last installment of 7 Lacs assuming that once I find a buyer I'll ask advance & make the remaining payment. Just to be sure that the builder isn't asking for any penalty charges due to late payment I had asked them to send me the final due amount in Dec 2017 also & there were no late payment charges in that final due sheet. Now I wish to register the property for myself only & wanted to make the final payment in Mar 2018. I asked them for the final due sheet & they've added a big late payment fee citing that the agreement already has this clause. But if they weren't implementing it in Dec 2017 when I was already 9 months due in the last payment then they should be charging me only for the months post Dec 2017, right? How can they expect me to bear the late payment charges since Feb 2017. I definitely do owe them late payment charges but shouldn't they have sent me the charges month on month telling me that we're going to start charging the late payment fees from now & and you should make the payment ASAP. I've been speaking to the representatives of the builder on a constant basis & no one has even mentioned this to me. Is there any legal recourse I can take or are they right in charging these late payment dues ?
Asked 6 years ago in Property Law
Religion: Hindu
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14 Answers
Please see your builder buyer agreement which must have a clause in this regard and applicable to both the parties uniformly.
As the property was booked in pre launch so the time should have calculated from the date of allotment and sign of the agreement.
You need to find amicable solution else there will be civil suit to recover the outstanding and holding the possession from builder side.
If you find any supporting clause in agreement the you may move to State Consumer Redressal Commission in appeal against the builder
But shouldn't they have mentioned that in the final due sheet they sent me in Dec 2017 just 3 months back? Had they done that I would have paid it that time itself after negotiating with them. All of a sudden and that too only after my request they've saying I need to pay them almost 2.5 Lac extra in late payment fees (18% interest in the late payment + holding charges). I'm sure these things must be mentioned in the agreement also but if they weren't charging those till Dec '17 (9 months delay) how can they suddenly decide to charge it in Mar '18 & expect me to pay for the delay since Mar '17 (12 months delay)?
Asked 6 years ago
They should have mentioned that you would be charged late payment fees
As mentioned earlier if there a clause in your allotment letter builder can charge you late payment fees for delay in making payment
This the catch you may use in your favour in State Commission as they have not let you know about the late payment in their notice in Dec 17.
By filing the case at least you have an opportunity to discuss and decide amicably as the balance of outstanding is 7 lacs without the late payment.
Please don't be very optimistic as the state Commission takes lot of time to decide.
Please rate the reply if you like.
If you are aggrieved by the said letter wherein the late payment fee has been imposed upon you then you may move to the consumer forum for getting the same quashed
Yes you may move on this ground that nothing was charged in the account statement of the December
Also, the same will be filed in either the national/ state or district consumer forum as per the value of the flat.
Regards
Write them to waive off the unjustified interest that they have imposed on the final payment and propose to pay the rest of the amount.
If your written request doesn't inures any benefit, send this building a legal notice through a lawyer calling upon them to waive all the unjustified interests and other charges.
Not having whispered a word about interest in the final due sheet that they had sent to you in Dec 2017, it is not open for them to surprisingly seek interest from you now.
Their demand is unjustifiable.
Send them a legal notice as advise.d
Dear Sir,
The course now open to you is just pay the amount whatever they claim and take possession of the same reserving your right to claim damages for delay in handing over the flat. Further you have pay the amount under protest to seek remedy before RERA Authority in respect of penalty and exuberant rate of interest. Get issue a legal notice.
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https://rera.karnataka.gov.in/
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RERA: Homebuyers to get 10% penalty for delay in projects
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There are a number of clauses in the Act that aims toward protecting the buyer’s interest and envisage a transparent system in the real estate sector.
In a bid to protect the interest of homebuyers as well as weed out non-serious and unscrupulous players from the market, the Real Estate (Regulation and Development) Act, 2016 (RERA) has proposed heavy penalties on builders who will henceforth either delay their projects or won’t comply with RERA norms.
For instance, RERA recommends imprisonment for a term which may extend up to three years, or fine which may extend up to 10% of the estimated cost of the real estate project, or both, in case of non-compliance with the Act. Moreover, in case of any structural defects arising within five years of handing over the possession of project to buyers, developers will be liable to rectify such defects without further charge.
If a project is delayed, which has become the sector norm today, developers are required to pay 10% interest to the buyers on the invested amount as against the Rs 5 to Rs 10 per sq feet penalty contracted in the sales agreement. It may be noted that a majority of developers are currently charging 12% to 18% – going up to 36% in some cases – interest from buyers for any delay in payment, while they themselves usually pay in the range of Rs 5 to Rs 10 per sq ft even in case of a luxurious project, which is not a fair deal to buyers.
However, after coming into force, RERA has raised the expectations of buyers multifold. In fact, the buyers who suffered from the delay in delivery of the projects or the delivered product not being as promised at the time of booking in terms of quality, specification, and carpet area etc. are looking towards this Act with high hopes.
You can file Complaint with Consumer forum for the same. You will get redressal.
Dear Sir
We need to look the agreement and flat to understand the case and find some reason for the delay. We need to make defence ground and approach the builders for the delay in payment. We need to negotiate hard on the penalty. This needs to rework on the circumstances.
We deal with the property matters and builders on regular basis hence we need details to deal with them.
Feel free for any assistance
1) If late fees charges clauses are mentioned in the agreement and then it may be obey by you or you can request to builder to give some concession on it as you have paid ___% payment on time for little amount you shouldn't been charged.
2) Check the last payment date made by you and did builder has completed 90 construction and now when did he had got completion certificate from municipal corporation.
3) We need to calculate the all dates of payment and his all dates of completion of building construction % wise.
You had requested for holding the demand notice till December whereas you did not honor your own commitment, hence the builder is right in charging the penal interest from the actual due date.
You cannot claim excuse since you have exhausted the opportunity also the monthly due notice was not sent to you because of your request to hold the demand letter.
There may be no relief maintainable even if you agitate over this.
There is no point in agitating over the issue at this juncture.
You may better talk to builder company and negotiate the exorbitant penal interest to reduce it certain extent.
Any legal action may not fetch you any fruitful result.