Property Deposit Refund Claim
In recent decades, the real estate sector in India has received massive traction in terms of investment, number of projects, rate of property purchase, etc. This can be owed to evolving demographics, increasing purchasing power of the average consumer, foreign investments, existence of easy financing options for middle class consumers, etc.
The growth of the real estate sector in India also means increasing disputes and developer claims between property buyers and real estate developers or any concerned intermediaries. As a proper buyer, it is extremely important to remain aware of your rights with respect to developer claims. One of the most common developer claims is the property deposit refund claim wherein the developer is under an obligation to refund the money paid by the purchaser in question if certain conditions of the property sale are not met.
In order to bring about accountability, transparency, efficiency, and also to establish an adjudicating mechanism for speedy dispute & grievance redressal, the Government of India passed the Real Estate (Regulation And Development) Act, 2016 which is more popularly known as RERA Act. Currently, most developer claims in India are regulated and adjudicated on the basis of the RERA act.
What are some of the primary developer claims in India that you should be aware of?
- Inability of the Developer to complete the project
- Delay in handing over Possession to the buyer within stipulated timelines
- Deficiency in the quality of construction
- Non-compliance to the clauses mentioned in the agreement executed with the developer
- Non-compliance to the prevalent laws for layout plans or construction
- No communication from the Developer/Builder/Company with respect to construction or progress (In case of ongoing projects)
- Amendment in the layout plan or building/structure without the knowledge of the buyer
- Non-issuance of completion/occupation certificate
- Demand of additional/hidden fees
Evaluating developer claims is crucial for someone who has purchased property because it helps ensure that the developer has fulfilled their promises and delivered what was agreed upon. Here are some reasons why evaluating developer claims is important:
- Verifying Property Specifications: Buyers need to assess whether the property matches the specifications and features promised by the developer. This includes evaluating the size, layout, design, amenities, and quality of construction.
- Ensuring Legal Compliance: Developers are required to comply with various legal and regulatory requirements during the construction and development of properties. It is essential to evaluate the developer’s claims to ensure that all necessary permits, approvals, and clearances have been obtained.
- Assessing Construction Quality: Evaluating developer claims allows buyers to assess the construction quality of the property. It involves examining the materials used, construction techniques employed, and adherence to safety standards. This evaluation helps identify any potential defects, construction flaws, or compromises in quality that may impact the value, durability, and safety of the property.
- Reviewing Completion Timelines: Developers typically provide estimated completion timelines for their projects. Evaluating these claims helps buyers assess whether the project is progressing as promised.
- Evaluating Reputation and Track Record: Assessing the developer’s claims allows buyers to evaluate their reputation and track record. Researching the developer’s past projects, reviews, customer feedback, and financial stability can provide insights into their credibility and ability to deliver on promises.
- Protecting Financial Investment: Property purchases involve substantial financial investments. Evaluating developer claims helps buyers protect their investment by ensuring that the property meets the promised standards and specifications.
As a leading law firm in India, we at Ahlawat & Associates follow an extremely proactive approach by providing strong and outcome-oriented representation to deal with fraudulent and non-performing real estate developers and to contest or claim the investment made, along with penal interest and other costs. We also offer holistic counsel in the form of NRI Property services to non-resident Indian who may not have the resources to deal with their domestic property issues.
We are a team of highly competent and experienced lawyers with an in-depth knowledge in the nuances, procedures and laws pertaining to all such property disputes, providing end-to-end services to aggrieved property buyers for quick resolution of actionable matters.
We understand that each client and their legal matter is unique. Therefore, our approach to any case begins with an initial consultation. During this meeting, you will have the opportunity to discuss your legal concerns, goals, and any questions or doubts you may have. Our experienced attorneys will actively listen to your needs and provide an initial assessment of your case. After the initial consultation, we will work closely with you to gain a comprehensive understanding of your objectives. We will take the time to listen carefully, ask relevant questions, and gather all necessary information to formulate an effective strategy tailored to your specific legal needs.
Our team of legal professionals will then conduct a thorough legal analysis of your case. This includes examining relevant laws, regulations, and precedents to develop a solid foundation for your legal strategy. We will also consider any potential risks, challenges, and opportunities that may arise throughout the process. Based on the analysis, we will develop customized legal solutions specifically designed to address your objectives. Our attorneys will explain the available options, their potential outcomes, and the associated risks and benefits. We believe in empowering our clients with knowledge, enabling them to make informed decisions with respect to their real estate developer claims.
1. Why should I take my developer claims seriously as a property buyer?
Taking developer claims seriously is essential for property buyers to ensure the accuracy of information, fulfill contractual obligations, protect their investments, assess property value and quality, ensure legal compliance, and promote transparency and trust. It allows you to make informed decisions, mitigate risks, and protect your rights and interests as a property buyer. By holding the developer accountable for their claims, you establish a foundation of trust and encourage them to provide accurate and reliable information. This fosters a positive relationship and reduces the risk of misunderstandings or disputes throughout the property buying process.
2. How to understand if my property developer is making false or misleading claims?
Remember, due diligence and careful assessment are key when dealing with property developers. Being proactive, conducting thorough research, and seeking legal advice will help you identify any false claims or misrepresentations made by the developer and make informed decisions regarding your property purchase.
3. How can a law firm help me with my real estate developer claims?
As a leading law firm, we at Ahlawat & Associates can provide you valuable assistance and legal expertise in dealing with developer claims. We also offer comprehensive NRI Property Services for those who are looking to safeguard their Indian real estate assets.
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