Steps to Take if a Builder Delays the Project

Highlights of the Post
Check Documents
Send Legal Notice
Claim Compensation
Take Legal Action
How Can We Help?

If you are wondering what should you do when the builder delays the project, then you have landed on the right page! 

Property builders often fail to deliver the promise of handing possession on time.  These issues can rise due to several reasons such as pending approval or financial crisis. However, delay in possession occurs mainly due to the lack of management and miscalculation. 

We know for a fact that buying a property from your hard-earned money and then not being able to move-in can be frustrating. You cannot move in without a possession certificate. Usually, the reason why the possession hasn’t been handed over is due to the negligence of the builders.

Due to a lack of real estate guidelines in Pakistan, the affected individual is usually confused over what they should do if the builder delays the project.

Understanding this problem, we have formed a set of guidelines to help you if the builder delays the project. 

Let’s begin!

Measures to Take When the Builder Delays the Project

Property Purchase
We have formed a set of guidelines to help you if the builder delays the project

In order to take action against a builder, you need to follow the below mentioned steps:

  • Check documents
  • Send legal notice
  • Claim compensation
  • Take legal action

Check Documents

The first step you need to take in a situation like this is to check whether you have all the required documents. Those documents are proof that a successful transaction had taken place. 

Take out your documents and read them thoroughly. See if there were any clauses related to your situation. Some clauses include partial or 70 percent refund in case of project delay.

Some of the documents you need to go through are:

  • Title Deed
  • Sales Deed
  • Sales Agreement
  • Payment Receipts

Title Deed

A title deed is one of the most important documents you require while dealing with matters of property. It is a legal document that determines the ownership of the property. It protects the rights of the owner. 

Tip: Once the final payment has been made, make sure to have the title deed drafted.

Sale Deed

It is an important document required during transfer of property, the document is signed by both seller and buyer.

The sale deed is drawn once both parties agree on the terms of the sale. Once the deed is signed, the property officially belongs to the buyer. 

Tip for property buyers: Before signing on the agreement, add either a refund or a compensation clause. 

Purchase Agreement

sales documents
The purchase agreement lists the terms and conditions of the sale

It might be one of the most fundamental documents that you may need in a situation like this. 

The purchase agreement lists the terms and conditions upon which the sale of the property is finalised, to make sure that the transacting parties respect the terms and condition. It includes project conditions, payment, terms, and deadline etc.

Tip: Before purchasing a property, make sure the seller is reliable.

Payment Receipt

Also known as the payment for receipt, the document is given to the customers as a proof of full or partial payment. The date includes ‘date of the payment’, ‘amount received’, and ‘amount remaining’ [if any].

Tip: The buyer needs to keep all the receipts safe, so if the situation rises, you have proof of completing the payment.

Sending a legal notice is a promising way to speed up the construction process.

A legal notice is a document listing all the terms and conditions that the receiver must fulfill, with the given time. Unless the receiver complies with the terms and conditions, the notice is followed by legal action.

The builder, in order to avoid legal action and the entire process, will most probably rush the work, and try to deliver the project within the proposed time.

This will be financially beneficial for the buyer as well, as the problem would most probably be solved before any further steps need to be taken.

Tip: You should consult a lawyer, in order to avoid making any mistakes before sending the legal notice.

Claim Compensation

After receiving the legal notice, it’s likely that the builder has sped up the process of handing over possession. If that’s still not the case, then legally you have the right to ask for a refund or compensation.

If you are currently living in a rental, you can ask for compensation for the amount. Compensation can be a refund of the entire payment or some percent of the total amount. 

However, this clause can only be utilised if it is added in the purchase or sales agreement.

If all the above mentioned steps do not work, you can always seek the legal course of action. 

This option should be availed, if you have all the documents ready, your payment receipts and the document with the delivery date and terms and conditions of the agreement.  

You should also familiarise yourself with laws regarding rights of property owners in Pakistan. 

Hire a lawyer that is well known in the industry, can effectively strategise against known and powerful property sellers.

Make sure to file the case in the consumer court, and under respective consumer laws. Each city and province has their own set of laws, when it comes to a builder delaying the project. 

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