What Are My Rights If The Builder Delays The Project Possession

Apr 12, 2019

What Are My Rights If The Builder Delays The Project Possession?

It happens many times that a builder claims complete possession of the property like flat or shop in a particular number of years but, due to some reasons or issues, delays the process. Being major cities of Pakistan, Karachi, Lahore and Islamabad have large number of housing societies that give commercial and residential properties on instalments that span from seven to ten years of time. We are not saying that every housing society is a fraud, there are many successful schemes as well like Bahria, Defence etc. that are known for their high-end living standard but you cannot deny that there is higher number of fraud builders than actual ones.

Coming to our main point, what if you have end up with a con builder who has robbed you of your money and is now making lame excuses of not handing over the possession of your property? What are your chances and options against him and how to recover your finances? In this blog, we will try to answer your questions regarding all of this and more to help you with your property issue. Please leave your comments if we miss on anything.

1. Check your Documents

Having complete property documents is key to successful real estate transactions and matters, take out your papers and read the terms, conditions, and clauses, if you have added any, and see what you can do about the situation. This is why we stress so much on reading the Builder Buyer Agreement and adding your side of claims in it as well into other property documents. Some useful claims can be full, partial or 70% of refund in case of delay, compensation in the form or refund or other property purchase etc. Even if you have not added any clause, you can still approach local development bodies for assistance.

2. Send Legal Notice

Before taking any action, send legal notice to the builder stating that you will lodge complaint against him if he does not hand over your property within a specific time. This will also help you in gauging his response as some builders speed up the work to avoid landing into any lawsuit. This way is beneficial if the builder takes heed of it, as it will save you from the efforts and money that you will be spending in court and cases.

3. Claim the Compensation or Refund

If after sending the legal notice, the builder still does not increase his efforts and work frequency then you have all the rights to ask for the refund or compensation. In many cases, the compensation is claimed when the builder has delayed the project too much but since nearly every builder delays the possession, you should ask for compensation even if it is a day of delay. Compensation can be either full refund or the 20 to 30 percent of the total amount, share or interest on the property’s payment. This point should be added in your documents beforehand to avoid any last minute issues.

4. Take Legal Help

Taking legal help should be your utmost priority if faced by any such situation. However, this option should be availed very carefully and only if you have solid proofs, your lawyer is remarkably skilled at handling such matters and you are sure that you can pressurize the builder effectively. In many cases where the builders are affluent and resourceful, especially the ones operating in cities like Karachi, Lahore and Islamabad, threaten the buyers or lengthy lawsuits and force them to accept nominal compensation and ward off all the claims and charges against them. If moving further with this option, file a complaint against the builder in consumer court and under the prevalent consumer laws.

5. Check with Local Consumer Provisions

Your city may have all the answers to your problems; every city has some sets of consumer rights related to real estate and property selling and buying matters. You should check with Consumers Laws in Pakistan that include real estate domains like land acquisition, leasing and mortgage law that protect your interests in various manners. In Sindh area, Consumer Rights Council informs, educates and protects the rights of consumers of movable and immovable goods while in Punjab, the Directorate of Consumer Protection Council takes care of the matters related to Lahore, Islamabad and the entire Punjab area. When working with a lawyer, make sure to consider all this.

6. Claim for the Damages

Damages are divided into direct and indirect damages and you can claim compensation for both of these types. Direct damages are mostly of monetary type and include the money spent on rent and alternative accommodation and money required to buy another house, shop or flat, in case you are sure that the builder is not continuing the construction and you have to buy another residence. The builder is entitled to pay you full amount of the other house or flat according to the market price. Indirect damages are more associated with emotional damages like if you are planning to gift the house to your son or daughter in marriage and the marriage is cancelled due to the delay or cancellation, you are retiring and need to evacuate the government residence and have nowhere to go since the possession is delayed or cancelled. You can claim for all these damages in the form of refund.


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