Delay of possession legal notice Edited

To,

[Name of the builder]

[Address of the builder- line 1]

[Address of the builder- line 2]

[Address of the builder- line 3]

Dear Sir,

Subject: Legal Notice due Delay in possession of property named [Property address]

We, the members of the sender group, had purchased flat/flats/Apartment from your [project/builder] in [year of purchase] under [payment modes/schemes] and have already paid almost [percentage of amount you have paid]/the entire amount of [the amount paid] of the total cost towards purchase. The possession was promised in [possession month] [possession year], failing which penalty [penalty amount] sq ft was agreed to be paid to the buyer.

Since [year of possession] onwards we have been visiting your office/construction site and pursuing progress of our allotted flats/property. We regret to say that in spite of several visits and letters, we have never been able to understand/ know the actual state of construction. Though property seem to be have been built up but no progress to its completion, failing which possession is delayed and is yet to be handed over. In fact, no progress for delivery of our property is informed & always vague & conflicting information is given in piecemeal.

It was promised by your Company at the time of making the payment for the property that the possession of the fully constructed flat would be handed over By [possession month] [possession year] and since I/us had booked under [payment modes/schemes], we had assumed that by the time we would start paying our EMIs, the burden of rentals would go off.

We demand that you don’t delay the possession of this property any further. If this continues, we can file suit against you under RERA Act.

Kindly contact us with your queries or your response to this notice at the earliest.

Your Customer/Flat Owner

[Your Name]

[Your current address]


RERA gives two options to house buyers in case of delayed possession. First, get the interest on delayed possession or second is to get the complete refund amount along with the interest. Delay in the possession of flat and apartment property and allotted is a common occurrence. 

Also, it is a common ground on which a property buyer or allottee usually relies in case of delayed possession. They can take legal action against the builder, developer or promoter.

What if the Builder Delays Possession?

Under the RERA Act, 2016, the following are the penalties for delay in possession:

  • The customer can file a complaint with the adjudicating officer or authority, appointed under the legislation.
  • If the promoter fails to complete the project within the specific time period as per the sale agreement, or if he delayed the possession of the property. Then he has to refund the amount received from the buyer, with interest. 
  • The interest rate is decided, 10% of the buyer's investment. If the builder fails it, then he will have to pay a fine of 10% of the project's estimated cost or imprisonment for up to 3 years, or both.
  • If the builder decides to change the project's possession date, the buyer has the legal right to withdraw the amount and receives a refund of the paid amount within 45 days. 
  • If the buyer does not withdraw the property possession, the builder has to pay compensation to the buyer for the delay in the form of monthly interest until the property is handed over.

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