In this video, we’re discussing a critical issue often encountered when buying property. If you’ve signed an “Agreement for Sale” with a real estate developer or are planning to, you may have noticed that some clauses are intentionally added to prevent buyers from claiming compensation for delayed possession. These clauses are frequently found in real estate agreements and, if left unchecked, could limit your rights as a buyer in the real estate market.
Here are the common clauses that real estate developers include in agreements: 1. War, Civil Commotion, or Act of God: Known as the “Force Majeure” clause, this includes unforeseen events like wars or natural disasters. While valid, it can also be used as a loophole in real estate to evade responsibility. 2. Notice, Order, Rule, or Notification by Government: This clause allows developers to extend the possession timeline if there’s a government order causing project delays. However, timely clearances and approvals are a real estate developer’s responsibility and shouldn’t penalize the buyer. 3. Non-availability of Steel, Cement, or Construction Material: While supply issues are common in real estate construction, lack of planning and sourcing shouldn’t affect the buyer. 4. Stay or Injunction Order from Court: A court stay can cause delays, but it indicates poor planning on the developer’s part. Buyers should not be deprived of compensation due to such delays in real estate projects. 5. Delay in Payment by Allottee: Although a buyer’s delayed payment could incur charges, it cannot be used to justify possession delays. 6. Delay in Completion or Occupation Certificate: Obtaining these certificates is the real estate developer’s duty. Delays here are solely the developer’s fault, and the buyer should not be affected. 7. Changes in Laws or Regulations: Real estate developers must be prepared for regulatory changes. Delaying possession due to this is unreasonable for buyers. 8. Delay in NOC, Permission, or License: Real estate developers are responsible for obtaining NOC, licenses, and utility services on time. Delay in this area indicates a lack of proper planning.
Seeing these clauses, it’s clear that developers often include them to safeguard against potential delays in real estate projects. However, if you find such clauses in your agreement, stay cautious. The good news is that u