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Did You Know | Builders must mention date of delivery

Did You Know | Builders must mention date of delivery
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First Published: Tue, Mar 23 2010. 09 40 PM IST

Updated: Tue, Mar 23 2010. 09 40 PM IST
It is mandatory for the builder to put a date of delivery in the buyer’s agreement at the time an apartment is booked. But it is not mandatory to build in a clause that makes the builder pay for any delay from this deadline.
Ensure compensation: There have been enough instances of builders delaying projects and homebuyers being left high and dry. One way to ensure that you are compensated for any delay is that a penalty clause is built into the agreement along with the delivery date clause. In fact, you should keep that in mind when choosing your builder. Remember, this is applicable even if the booking is done during the project’s soft launch. This is a stage before the formal announcement of the project. Typically, builders offer a discount at this stage.
How much penalty is good? There are two ways of computing penalty. First, the penalty should be roughly equivalent to the rental value of the flat. Second, the rate of compensation should be Rs5-7 per sq. ft.
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First Published: Tue, Mar 23 2010. 09 40 PM IST