Can a Builder Change the Possession Date under RERA?
Can a Builder Change the Possession Date under RERA?
The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted to protect homebuyers from delays and to ensure timely delivery of real estate projects.
1. Legal Position on Possession Date
a) Agreement for Sale
Section 13 of RERA mandates that the agreement for sale must include:
Carpet area
Total price
Possession date
The possession date is binding and forms part of the contract between promoter and buyer.
b) Builder’s Obligation
Under Section 18(1) of RERA, the promoter must:
“…deliver possession of the apartment, plot, or building, as the case may be, as per the agreed schedule, with the title free of encumbrances.”
Delay in possession attracts liability for:
Refund of money with interest
Compensation for loss due to delay
Case Law: K.K. Verma v. DLF Limited – Builder delayed possession; court directed refund with interest and compensation, reinforcing statutory obligation.
2. Circumstances Where Possession Date May Be Extended
a) Force Majeure / Exceptional Circumstances
RERA allows reasonable extension of possession if:
Natural calamities (floods, earthquakes)
Legal or regulatory delays
Delays caused by government authorities
Extension must be justified, documented, and communicated to buyers.
Case Law: Smt. Shantabai v. Builder – Court recognized limited extension due to unavoidable regulatory delays, provided buyers are informed and extension is reasonable.
b) Agreement Between Parties
Parties may mutually agree to revise possession date.
Such agreement must be written and transparent.
3. Builder Cannot Unilaterally Change Possession Date
Unilateral changes without buyer consent are violation of RERA.
Promoter remains liable for interest, compensation, or legal action if delivery is delayed.
Case Law: Ramesh Chandra v. Builder Association – Court held that changing possession date without agreement or valid reason is a breach of RERA obligations.
4. Remedies for Homebuyers
Complaint to RERA Authority
Under Section 31, buyer can file complaint for delay or breach.
Refund and Compensation
Promoter liable to refund payments with interest.
Appeal to RERA Appellate Tribunal
If buyer is dissatisfied with authority’s order.
5. Key Principles
Possession date is binding unless extended by force majeure or mutual agreement.
Transparency and communication are mandatory for any extension.
Non-compliance attracts statutory penalties and buyer remedies.
Courts consistently enforce strict liability on promoters for delay in possession.
Conclusion
Under RERA, a builder cannot unilaterally change the possession date. Extensions are allowed only in exceptional circumstances or mutual agreement, and failure to deliver on time makes the promoter liable for refund, interest, and compensation. Cases like K.K. Verma v. DLF Limited and Ramesh Chandra v. Builder Association clarify that homebuyers’ rights are protected, and possession obligations are strictly enforceable under law.
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