Haryana RERA – Homebuyers Can Claim Interest For Delayed Possession After Execution Of Conveyance Deed

A Conveyance deed is a legal document used to transfer ownership of property from one party to another.

Background Facts

The homebuyer (Complainant) booked a flat in the builder's (Respondent) project named Maceo, located in Sector 91, Gurugram, which was launched by the builder in 2012.

On 06.06.2014, an apartment buyer agreement was executed between the homebuyer and the builder for the sale of a flat with a super area of 1862 sq ft in Tower E of the project.

As per clause 7.1 of the Apartment Buyer Agreement, the builder was liable to complete the construction of the unit and hand over physical possession within a period of 36 months from the date of execution of the agreement (by 06.06.2017). Further, on 24.11.2020, the builder executed the conveyance deed in favor of the homebuyer.

However, despite the homebuyer paying the total sale consideration of Rs. 67,93,552/-, the builder failed to hand over possession within the promised timeframe.

Aggrieved by the delay, the homebuyer filed a complaint before the authority seeking possession and interest for the delay.

Contentions of Builder

The builder contended that once the conveyance deed was executed, the relationship between both parties ended. Therefore, neither the builder nor the homebuyer can assert any rights or liabilities against each other. As a result, the homebuyer cannot claim interest in this case.

Observation and Observation by Authority

The authority observed that the term "conveyance deed" implies that the builder has executed a document stating that all authority and ownership of the property in question have been transferred to the homebuyer.

The authority further observed that the execution of a conveyance deed does not mean that the builder's liabilities and obligations towards the flat have concluded.

The authority referred to their decision in the case of Varun Gupta v/s Emaar MGF Land Ltd. (4031 of 2019), where it was held that the execution of a conveyance deed does not conclude the relationship or mark an end to the liabilities and obligations of the promoter towards the subject unit.

Further, the authority observed that as per clause 7.1 of the sale agreement, the builder was obligated to hand over the possession of the flat by 06.12.2017. However, the homebuyer was provided possession on 25.11.2023. Therefore, the homebuyer is entitled to receive interest for delayed possession under section 18 of the Real Estate (Regulation & Development) Act 2016.

Therefore, the authority directed the builder to compensate the complainant with monthly interest at a rate of 10.85% per annum for the delay.

Case – Gurpreet Kaur Versus M/s. Anant Raj Ltd.

Citation – Complaint No – 6105 of 2022