Delayed Possession: Can Homebuyers Seek Interest Without a Mentioned Possession Date in the Agreement?

2025-04-21 02:29:40

Delayed Possession: Can Buyers Claim Interest If Possession Date Isn’t Mentioned in the Agreement?

Homebuyers are entitled to a refund with interest under Section 18 of the Real Estate (Regulation and Development) Act (RERA), 2016, in cases of delayed possession. However, when the date of possession is not clearly specified in the agreement, things can get complicated.

In a recent ruling, the Maharashtra Real Estate Regulatory Authority (MahaRERA) dismissed complaints filed by homebuyers seeking interest for delayed possession. The authority clarified that when no specific possession date is mentioned in the registered agreement for sale, it must consider the completion timeline submitted by the developer on the MahaRERA website.

Background of the Case

Two buyers, Gaurav Barve and Avani Barve, approached MahaRERA with a complaint against a developer in Boisar, near Mumbai. The buyers had entered into a registered agreement in December 2014 to purchase a flat for ₹17.84 lakh, of which ₹10.08 lakh was paid.

They alleged that the developer had intentionally left the possession date blank in the agreement and demanded a refund with interest and compensation for the delay in handover.

MahaRERA’s Stand

In its order dated March 11, 2024 (recently published on its website), MahaRERA noted that the possession date was indeed not stated in the agreement signed by both parties. In such cases, the authority said, it must rely on the project’s completion date as registered by the developer on the MahaRERA portal.

The developer had originally declared December 31, 2022, as the proposed completion date. This was later revised to December 31, 2027, and then extended again to December 31, 2028.

Based on this information, MahaRERA held that the claim for refund and interest under Section 18 was premature.

“In the absence of any agreed date of possession in the agreement, MahaRERA considers the completion date mentioned on its website. Hence, the complainants’ claim for refund appears premature at this stage,” the order stated.

Relief Still Possible

Though the complaint for refund and interest was dismissed, MahaRERA granted the buyers the option to exit the project. However, the cancellation would be governed by the terms of the allotment letter issued in 2013 and the registered agreement for sale signed in 2014.

Understanding Section 18 of RERA

Section 18 of RERA allows homebuyers to claim a refund along with interest if a developer fails to deliver possession in accordance with the terms of the agreement or within the timeline promised. However, in the absence of a clear possession date, authorities may rely on other officially submitted timelines, as seen in this case.