Plight of the house buyer
1998 The Star Articles of Law with Bhag
Singh
The signing of a Sale and Purchase Agreement is a happy occasion for most house buyers as money matters such as
the downpayment and loan, would have been settled or arranged for.
The developer on his part, has nothing to complain about. He has acquired the land, though he may not have paid for it as yet, and
he has enthusiastic buyers who are willing to pay as much as 10% of the purchase price.
At this stage the buyer has the layout plan and artist's impression of the land property, and, some technical information. That's
all. He has acquired neither the land nor the building but a dream. He has in fact only bought the developer's promise.
Ugly scenario
As the building takes shape, everything appears to proceed smoothly. This is because once the buyer has settled his initial
payment, he merely receives letters informing him of work being completed and the financial institution granting the loan will
release the money. Otherwise only pieces of paper change hands.
Only when the developer completes the house and the buyer is told that the Certificate of Fitness is not available does the
nightmare start.
By now, however, the developer has obtained what is due to him under the contract. And it is the buyer who is in the lurch because
he has paid for the house and yet cannot make use of it.
And the longer it takes to get the Certificate of Fitness, the greater the hardship and the loss that the buyer faces as he has to
pay interest on the loan of an "unproductive asset" which he can neither occupy or let out.
Resolving problem
Usually the developer will blame the authorities for delaying the issuance of the Certificate of Fitness, while the authorities in
turn blame the developer for not doing things properly.
In desperation, these house buyers will complain to the newspapers and send copies of their complaints to senior government
officers and ministers. Even when such letters are published, they often do not produce the desired results.
The correct approach would be for the house buyer to assert his rights in the courts. To do so the buyer must find out who is
delaying the issuance of the Certificate of Fitness.
If the delay happens because the developer has not done a proper job, then action should be taken against him. In this case the
house buyer stands a good chance of winning the case.
However, a distinction has to be drawn - whether it is a failure to do the work as specified in the contract or it is defective
work in which case the developer will be called up to rectify or pay compensation in lieu.
Precarious position
If the developer has done all that he is contractually bound to do and ascertains that the delay is caused by the issuing
authority then he cannot be held responsible.
When this is the case, an individual is usually reluctant to sue the authorities. But even if action is taken. the authorities may
resist on the basis that they are not liable for damages.
In many cases such a contention may be upheld and if this happens the authorities concerned may continue to be indifferent to the
plight of the house buyers.
On many occasions, it has been held that a civil claim cannot be made on account of a breach of duty by a public servant.
As such the position of the house buyer is even more precarious and an unhappy one. This may require more than going to court. It
may require seeking changes and improvements in the law through canvassing and lobbying. |
