Raipur. The Chhattisgarh Real Estate Regulatory Authority (RERA) has issued important information for homebuyers, clarifying that there is a difference between a project’s extension period and the possession date. RERA stated that an extension does not necessarily mean that the delivery date for the property has also been extended. According to RERA, the primary objective of the RERA Act 2016 is to ensure that registered projects are completed within the stipulated timeframe and that buyers receive their homes or flats on time.
What is the project’s validity period?
The authority explained that the project’s validity period is the period declared by the promoter at the time of registration and within which they promise to complete the construction work. This period is determined under Section 4(2)(l)(C) of the RERA Act.
What is the possession date?
The possession date is the date clearly stated in the Agreement for Sale between the buyer and the builder. This is the date when the buyer is to be handed over actual possession of the flat or plot.
What if the promoter fails to complete the work within the stipulated time?
RERA stated that if the promoter fails to complete the construction work on time, they can seek permission from RERA to extend the project’s validity period. However, this extension does not automatically mean that the possession date will be postponed.
What should buyers do if possession is delayed?
RERA stated that if the promoter fails to hand over possession on the stipulated date, buyers can file a complaint with RERA. Under Section 18 of the RERA Act, buyers have the right to interest or a refund.
The difference between project extension and possession date
RERA has clearly distinguished between the two concepts, stating that the purpose of a project extension is to ensure the completion of construction work, while the purpose of a possession date is to make the property available to the buyer on time.
RERA’s key message
RERA clarified that “project extension does not mean extension of the possession date.” The authority urged homebuyers to carefully read the possession date provided in the Agreement for Sale to avoid any confusion. If a buyer has not received possession on the agreed date, they can file a complaint on the RERA portal and claim interest or refund.
