• Penalty for delay in sale deed registration

Builder got occupancy certificate (OC) one month before COVID lock downs and travel restrictions. In the sale agreement there is a clause that the property has to be registered within 5 months from the OC. I was out of town, and couldn't register the sale deed within those 5 months due to COVID lock downs, family hospitalization, and travel restrictions. I was ready to pay a penalty excluding COVID lock downs and travel restriction period. But the builder has charged me a penalty for the entire period from the date of OC to date of registration including COVID lock downs and travel restrictions. How can I get reimbursement for COVID lock downs and travel restrictions period from the builder? Where can I file a complaint for this?
Asked 1 year ago in Property Law
Religion: Hindu

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17 Answers

File complaint against builder before consumer forum and seek orders to set aside penalty demanded by him as registration could not be done due to covid 

 

2) pay amount demanded by builder under protest and register sale deed in your name 

Ajay Sethi
Advocate, Mumbai
94965 Answers
7576 Consultations

5.0 on 5.0

1.  Send a legal notice to the builder for having charged you penalty for the entire period including COVID lockdowns and travel restrictions.

2.  If there's no positive response to the legal notice, file a complaint against the builder in the jurisdictional Consumer Court.

Shashidhar S. Sastry
Advocate, Bangalore
5164 Answers
314 Consultations

5.0 on 5.0

Engage any lawyer on  this 

website for sending legal notice 

Ajay Sethi
Advocate, Mumbai
94965 Answers
7576 Consultations

5.0 on 5.0

It is unfair, illegal and deficiency on part of builder. However, agreement with builder has to be looked into. Demand of builder is illegal and unjustified. Report the matter to RERA authority and also file consumer complaint. 

Siddharth Srivastava
Advocate, Delhi
1256 Answers

5.0 on 5.0

Hi, The builder has no right to impose penalty during the 5 moths of the OC. From the  date of OC to five months you can register the property and he can allow to impose penalty only  after 5 months only. Suppose if you register the  property in the 6th month, the builder can impose penalty only 1 month not from the date of OC.

 

Further like that above, the builder can't impose penalty during COVID period and travel restrictions. 

 

It is better you can register the property in your name as per the builder terms and thereafter you can approach the Court either RERA ( projected in registered under RERA) or Consumer Forum. If you go on fight with the builder before registration your possession will be delayed and your are put in a unnecessary trouble.

Pradeep Bharathipura
Advocate, Bangalore
5604 Answers
336 Consultations

4.5 on 5.0

To send legal notice to the Builder, please contact me through Kanoon.com

Shashidhar S. Sastry
Advocate, Bangalore
5164 Answers
314 Consultations

5.0 on 5.0

You can send a legal notice to the builder through an Advocate, by email, whatsapp or registered post and ask for refund of the penalty.

Priyanka Singla
Advocate, Ludhiana
12 Answers

Not rated

Issue legal notice to builder as to basis of calculation of penalty amount 

 

take plea that no penalty is payable as builder failed to respond to your emails for registration of sale deed through POA

Ajay Sethi
Advocate, Mumbai
94965 Answers
7576 Consultations

5.0 on 5.0

Was there a clause in your sale agreement which provided for the imposition of penalty in the event of failure to register the property?

Priyanka Singla
Advocate, Ludhiana
12 Answers

Not rated

Demand the detail from builder. Get discount of covid period, get proper receipt get sale deed registered and thereafter file consumer complaint. 

Siddharth Srivastava
Advocate, Delhi
1256 Answers

5.0 on 5.0

It’s illegal they can’t do the same you can send them legal notice and seek explanation if not given can file consumer complaint 

Prashant Nayak
Advocate, Mumbai
32093 Answers
183 Consultations

4.1 on 5.0

If there was a clause that you should get the property registered to your name within 5 months time from the date of obtaining OC,by the builder  then it becomes your duty to act accordingly.

However due to covid restrictions, it will not be possible, hence the builder cannot claim any penalty for the period of restrictions imposed by government due to covid. 

You may first get the property registered under protest and then issue a legal notice to the builder to return the penalty mount charged for the covid restriction period, failing to comply with demand, you may approach either consumer court  or civil court  to get the desired relief.

 

T Kalaiselvan
Advocate, Vellore
85166 Answers
2222 Consultations

5.0 on 5.0

You can contact an advocate either from this forum or outside to cause to issue a legal notice.

T Kalaiselvan
Advocate, Vellore
85166 Answers
2222 Consultations

5.0 on 5.0

You were advised to issue a legal notice demanding registration of the proeprty to your name and to deny their demand for penalty raised by them without any justification.

You may proceed as suggested by the advocates of this forum or outside.

T Kalaiselvan
Advocate, Vellore
85166 Answers
2222 Consultations

5.0 on 5.0

Demand the details of the penalty calculation as you are legally entitled for it.

 

Shashidhar S. Sastry
Advocate, Bangalore
5164 Answers
314 Consultations

5.0 on 5.0

- The Government had direct the public not to move from house during the corona-virus outbreak, and due to this reasons all the services has been stopped. 

- Hence your delay of approaching the builder for registration is caused by the Force Majeure, and not malafidely , which is out of your reach and control.

- Since you have entered into a contract after signing an agreement with the builder and thereby you bond yourself with the clauses mentioned therein. 

- As per law, A breach of contract occurs when one party fails to fulfill its agreement according to the terms of the contract, and the other party fulfills its obligations, the performing party is entitled to legal remedies for breach of contract.

- But, if the breach inevitably occurs due to something neither party has control over such as a natural disaster that affects one or both party of the contract , or the ongoing COVID-19 outbreak, then it will not come under the definition of the Breach of contract.

- Hence, the said builder cannot charge any penalty from you legally 

- You can send a legal notice after narrating the reasons of delay, and if no positive response then file a compliant against the builder before the consumer forum . 

Mohammed Shahzad
Advocate, Delhi
13377 Answers
199 Consultations

5.0 on 5.0

Dear Sir,

The validity period for any agreement to sell is three years and within such period you can get registered. If any penalty is to be paid then you must ask the builder to get official receipt for the same.

 

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
487 Consultations

4.8 on 5.0

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