In year 2014, we had signed an agreement with a builder to construct apartment in our land. They had paid an advance (later adjustable) amount of Rs 2.5 lakhs to us. In addition to this, they committed to pay 30% of the total flat. The agreement was not registered. The builder has not taken Power of attorney to construct the building despite of repeated request. However they have constructed 5 floors (only concrete structure) and later stopped their work. They have put the construction work on hold for almost 2 years now. We have verbally requested them a lot to complete the work but they did not heed us. They are also not returning our land deed original documents. Now when we are insisting on them to return our document they are threatening us to serve legal notice. I have the following questions please advise. 1. Can we now revoke the development agreement? 2. How can we get our original documents back from them? 3. Can we sell the land to any other buyer? 4. Do we have to pay for the construction done by them without taking POA from us? 5. Do we have to refund Rs. 2.5 lakhs advance?
1. Yes, if there is breach of terms of agreement you can cancel the agreement.
2. If the original title deed is not with the developer then keeping other original document with them is not of much concern.
3. Yes but after cancelling the agreement and after handing him over his due share .
4. Yes
5. Yes
Another option is to file case against the developer in consume forum seeking damages and compensation for unfinished job.
You can file suit for cancellation of the development agreement with prayers to return the original papers.
!. You can issue a legal notice to the builder to complete the construction or you should cancel agreement and further ask him to return the original deeds.
2. Serve them a notice and file a.complaint with police for same.
3.After cancellation of agreement through court decree you can see.
4. Since it is not completed you are not required to pay for same.
5. You can forefiet same in terms of unregistered agreement.
you can send him notice of cancellation of agreement.
Issue a legal notice through an advocate and ask him to return the documents.
After cancellation of agreement you can sell the said property.
No need to pay.
You can file consumer complaint against builder on defeincy of service and seek compensation for mentally torturing .
You can terminate the development agreement r as 5 years have passed till date construction has not been completed
2) sue the builder for damages and seek return of your original documents of title
3) you don’t have to refund Rs 2.5 lakhs
4) you ha ve to pay for construction done till date
There must be an agreement between the owner of the land and the promoter authorising to promoter to undertake the construction and such agreement should be registered. The terms and conditions are important to decide further course of action.
You can cancel or revoke the agreement on non compliance of any terms and conditions of the agreement.
On cancellation of the agreement the promoter is liable to return the original land documents to the owner.
After cancellation of the agreement you are free to sell the land to others.
You need not to pay for the construction work nor you need to refund the advance money to the promoter provided that these provisions are mentioned in the agreement or can be construed as implied with reference to other relevant clauses of the agreement.
1. your DA must have a timeline for completion of project. Please check that. If the stipulated period has lapsed then you can terminate the DA by issuing a legal notice
2. you will have to sue the builder
3. that will be difficult because your original papers are with the builder
4. no. that liability is of the builder. you have already submitted your land to the builder for the development work which he left in middle and thus locked your land
5. yes, if you are terminating the contract then you have to refund that advance with agreed interest
Yes, builder is violating time dead line, you can revoke it. Stop them from entering in the land.
Through court.
Yes, but ordinal documents will require.
NOps
Depends on agreement terms.
1. Since the builder fails to comply with the conditions of the development agreement, you can issue a legal notice to cancel the agreement for breach of the conditions of contract.
2. In the same legal notice you may demand him to return the property documents.
3. You may not be able to sell the property at this stage.
4. Yes you may have to pay the builder.
5. It depends on the final outcome .
Thanks for your responses. However I would like to get clarity on the below questions. 1. Can we lodge a complaint in District Consumer Forum against this builder and seek compensation for delay in completion of the building and for mental agony and harassment? 2. Is it advisable to go for arbitration or filing a civil court case for getting the original title deed? 3. Which among the above two options takes lesser time for the final outcome?
Yes you can lodge complaints to consumer forum for compensation and getting back the original documents.
Alternatively you can go to civil court also.
Consumer forum generally takes less time.
1) filing complaint before district consumer forum would take 2 years to be disposed of
2) civil suit would take years to be disposed of
3) if there is arbitration clause in agreement then refer disputes to arbitration
1. No this is commercial transaction no complaint is maintainable.
2. See if there is clause arbitration is better option to settle dispute.
3. You have option of civil court or arbitration.
Both in RERA and consumer court.
No
RERA
1. You can very well approach consumer forum for the deficiency in service and proper compensation thereon.
2. The arbitration may not be effective when it comes for a decision, instead you may better approach court directly for the relief instead of taking a long route.
3. You may analyse the pros and cons and decide the better option.
Consumer court option will be more speedy and affordable as compared to arbitration