Builder Delayed Handing Over the Flat? Know Your Legal Rights Regarding Home Loan EMIs

Real Estate: A home is a 'dream' for which you are paying EMIs. The builder has missed the deadline. Delays in home delivery are becoming a major issue in India. What can you do if you don't get your home on time?

Despite the sustained surge in sales and the launch of new projects in India's housing market, delays in possession remain one of the biggest challenges for homebuyers. For many families, the consequences are far more serious than mere inconvenience. A delay can mean paying both rent and EMIs for years, missing out on tax benefits, facing disruptions to financial plans, and, in some cases, fighting prolonged legal battles.

Delays in Possession: A Growing Problem

If your project has been delayed, you are not alone. According to PropEquity, as of July 2024, approximately 2,000 housing projects—comprising 5.08 lakh units—across 42 cities in the country were stalled. This figure exceeds the 4.65 lakh stalled units recorded in 2018.

More importantly, the issue is not limited to completely stalled projects; even among under-construction homes that are eventually handed over, four out of five experience delays of three to four years. These figures clearly indicate that delays in property possession are not an isolated issue; rather, they represent one of the biggest challenges faced by customers in India's real estate sector.

What Are the Homebuyer's Rights?

One of the biggest misconceptions among homebuyers is that they have no option other than to wait. However, this is not the case, and buyers need to be aware of their rights. According to Sneha Suresh, a lawyer with D.M. Harish & Co., when a builder fails to hand over possession by the date stipulated in the sale agreement, the buyer acquires several legal rights. Additionally, under Section 18 of the Real Estate (Regulation and Development) Act, 2016, homebuyers have two options.

The first option is to withdraw from the project and seek a refund along with interest. The second option is to remain in the project and claim interest for every month of delay until possession is handed over. Notably, the Supreme Court has repeatedly ruled in favor of homebuyers in disputes regarding delayed possession.