• I purchased under-construction flat from landowner

Hi All, 

I Purchased flat from Landowner which is under construction, Now construction is delayed by 2 and half years still in progress. To whom I should ask related to penalty and completion date. 

I tried to contact builder he simply said you have to check with land owner not to me. Land owner mentioning that if they pay the penalty i will transfer to you.

Kindly give me clarity on this.

Thanks,
Ravi G
Asked 1 year ago in Property Law from Hyderabad, Telangana
Religion: Hindu
1) you must have signed agreement with the builder . what are the clauses of agreement regarding delay in construction ? 

2) builder would be liable to compensate you for delay in delivery of possession of flat as per the agreement 

3) landowner must have entered into development agreement with builder for development of plot within 24 months or so . 

4)if builder delays completion land owner will impose penalty on builder as per the development agreement 

5) the agreement signed by you with builder has to be perused for further advise 
Ajay Sethi
Advocate, Mumbai
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In the present situation with out perusing the agreements of builder and land owner I can’t give a prompt advice. If there is a clause for compensation in delay in completion of work, you have right to get the same.

To whom you entered into the agreement for purchasing the flat, that person is liable to pay the penalty if it is specifically described in that purchase agreement.

Most probably the land owner is entered into a development agreement with builder. If such a clause is also mention in their agreement the builder is binding to pay the compensation. 

So send a legal notice to land owner, you can get a replay. From that replay and perusal of agreements mention above, you can come to a conclusion that who is liable to pay compensation in delayed completion of work. 
Ajay N S
Advocate, Ernakulam
1916 Answers
19 Consultations
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1. If you have purchased the property from builder, the builder alone is responsible for the delay. The plea of landlord is no excuse.
2. To get relief you can file case before the consumer forum for compensation and for refund.
Devajyoti Barman
Advocate, Kolkata
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this question shall be decided by the contract of sell, otherwise customs and usages of the trade. generally in your case there is no role of builder because he is independent agent and he is not a party in your case.   
Shivendra Pratap Singh
Advocate, Lucknow
2786 Answers
41 Consultations
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1. It is unwise to purchase an under construction property because then you have to grapple issues like delay in completion of construction, delivery of possession, etc. Be that as it may, you must have executed an agreement with the landowner. Your rights flow out of the agreement, if any, you have executed with the builder and/or owner. 

2. If the date of delivery of possession has been mentioned in the agreement then it ranks sacrosanct. The delay in delivery of possession is a ground on which you can file a lawsuit for refund of amount paid as consideration and also seek specific directions to the builder/owner to deliver the possession with compensation for delay.
Ashish Davessar
Advocate, Jaipur
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Hi, you have to ask the penalty from the landowner itself.

2. You have to file a complaint in the consumer forum for deficiency of services as against land owner and if you don't want the flat then you have to ask for cancellation of the agreement.
Pradeep Bharathipura
Advocate, Bangalore
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133 Consultations
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I Purchased flat from Landowner which is under construction, Now construction is delayed by 2 and half years still in progress. To whom I should ask related to penalty and completion date. 
Who did you enter the sale agreement ?, what are the conditions in sale agreement in this regard? especially about the penalty for delay and who will be held responsible.?  So go through the sale agreement once again, you will find an answer to this question. 



I tried to contact builder he simply said you have to check with land owner not to me. Land owner mentioning that if they pay the penalty i will transfer to you.
Oral enquiry may not yield any desired result, hence you may give a communication in writing and obtain an acknowledgment to this communication so that you can drag  the responsible person to the consumer forum seeking compensation for the mental agony cause due to delay in construction and not paying the penalty as per the clause in the sale agreement. 
T Kalaiselvan
Advocate, Vellore
14158 Answers
127 Consultations
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