Property possession disputes with real estate developers are very common in India specially in states like Maharashtra, Delhi, Bangalore, Chennai, Punjab and Gujarat etc. where the property rates have skyrocketed and are steadily increasing with the passage of time. Such disputes consume a lot of time and costs in litigation, which causes loss and tremendous agony. Therefore, it is vital for NRIs to follow some steps that they can take to avoid the situation.
The NRIs can pursue Real Estate lawyers so that the legal help can assist them in protecting their land and property from trespassers, encroachers and illegal possessors.
Let’s now look into the most common dispute due to delay in possession of flat or apartments in the real estate sector and how one should be supposed to prevent their properties from these issues.
Points to remember to avoid any property possession disputes with real estate developers
- A buyer requires to check the permissions required by the builder to construct in place and are taken prior in time before the builder is entitled to sell, i.e. the developer must have the approved procedures in place and other he procures no objection certificates(NOC). Commencement certificate obtained by the developer him during excavation would not suffice.
- Peruse the legal documents, plans and permissions of the proposed construction. A search of the title of the land, flat or building intended to be constructed or under construction is the most significant thing to consider before buying one.
- Ask for a construction schedule from a builder, and they give construction progress reports to demand payments for construction-linked property bookings. If the real estate developers have not claimed a return from the buyers within the specified time, it is a sign of the plan going off-schedule.
- Visit the site under construction or proposed to be built. In situations of the redevelopment of housing societies, ask the concerned authorized person from the housing society.
- Study for Litigation Disputes over boundary by physical review and or from knowing government and courts records.
- Financial statements of the builder and his prior profile must be asked for, Number of constructions performed by him till date and the number of pending litigations or criminal cases on the builder should be ascertained.
- Seek complete papers of the builder’s company or firm, i.e. Memorandum of Association, Memorandum of Partnership, Audited Annual Reports of all earlier years etc.
- Depending on the form of ownership and the relationships involved, you – the flat-buyer – will have to bear several invisible risks. For instance,
- a) If the builder is not an individual, i.e. but part of a partnership firm, then in the matter of a possession issues between partners, the project may become stuck.
- b) If the real estate developers (or the individual you are dealing with) is a director or an employee of a private limited firm of builders, then you need to know the legal powers of that individual. For instance, you are at risk if he is signing documents that he is not legally authorized to sign; if so, all papers signed by him are of doubtful legal value for enforcing your rights in a court. Seek legal advice from real estate lawyers if you don’t understand the nitty gritty of the situation.
- Make sure the builder is not a small-timer or a first-timer, a small building contractor or a small investor deciding to become a big-city builder with the advice of local or friendly investors. One little dispute with his lenders (investors) can move his tiny boat and put a question mark on your investment.
- Details of the real estate builder’s debt-equity ratio, exposure to other risk factors, i.e. other construction projects, risky investments in stocks and commodities, etc. (These may come from indirect sources such as internet research, newspapers and word of mouth)
- To make sure there are no property possession disputes with real estate developers, if your builder is taking huge financial risks on other fronts, then failure on those fronts may leave him unable to fulfil your building project. If your project gets stuck halfway because of his financial failure, it becomes your problem. For example – Is your builder low on working capital, and, hence, dependent on large borrowings from private lenders? If so, then plan delays (your project or some other projects) can increase the interest burden to crush levels, and he may lose all interest in your project.
Why do NRIs ask the help of Real Estate Lawyers?
It may happen that even after taking all the required, precautionary measures, following every law, one becomes a target of illegal possession of the property. If this happens, one shouldn’t make any delay in taking mandatory steps, such as querying help from real estate lawyers, to get his/ her property back.
Also Read About:- Deferment of Possession – Trouble for Defaulters