The demand for residential apartments and residential property is rising in India. More and more youth are buying houses and a number of builders are offering discounts and other freebies to lure buyers.
As demand increases, there’s no guarantee that builders will honor their word. Many a time, builders do not give possession of apartments on time.
Builders take more than the time promised to finish the construction, putting customers in a lot of financial difficulty. The common reasons for the delay by builders are delay in procuring the raw material, manpower/labor problems and so on.
If you have availed a home loan to buy the apartment, your repayment is called pre-EMI. This happens till you get possession of the property. Pre-EMI is the interest on the amount disbursed, till the full loan is availed. Pre-EMI has to be paid till the final disbursement is made.
You (buyer) are entitled to a tax rebate, under the Section 80C and Section 24(b), only after you get possession of the apartment. Till this happens, there’s no tax benefit.
If you don’t get possession of the apartment in time, you have to not only pay home loan EMIs, but also rent for the house you stay.
See Also: How To Buy A Flat?
If the possession of the property has been delayed by the builder, it is called denial of service. Any claims arising out of this are termed as, deficiency in rendering of service of a particular standard or grade.
The Consumer Protection Act gives you protection against malpractices by builders and developers. If the builder delays possession, you can approach the consumer forum for redressal for delayed delivery of possession.