MYTH-70. “WE WILL DELIVER ON TIME SINCE THERE’S A PENALTY CLAUSE.”
1. Project delays are a reality and few are completed on schedule.
2. Some builders do offer compensation for delays in handing over possession, but it’s not something you can bank upon, as the amount offered will be nowhere close to the EMI you are paying.
3. This is because you would be paying the instalment for the total cost of property, but the compensation offered will be linked to the base price, which does not include additional charges for parking, club membership, etc.
4. Some builders also slip in a clause in the agreement, which insulates them against any claim by the buyer.
5. Also, most have a clause in the agreement which states that if the project is delayed because of ‘factors outside their control’, they will not be liable.
6. It is in the interest of the potential buyer that the purchase agreement include a clause which mentions the date on or before which the developer will hand over the possession of his property.