Yes, a builder may have a legitimate reason to delay registration of a sale deed in some circumstances, but an unreasonable or unjustified delay can be challenged by the buyer.
When can registration be delayed?
A delay may occur because of issues such as:
- The buyer has not completed the required payments or documentation.
- Stamp duty or registration charges have not been paid.
- Required approvals, completion certificates or other statutory documents are pending.
- There is a title, development or legal issue affecting the property.
- The Agreement for Sale provides a specific timeline or condition for registration.
However, if the buyer has fulfilled the contractual requirements and the property is legally ready for registration, the builder generally should not unnecessarily postpone the execution or registration of the sale deed.
What can a buyer do?
The buyer should first check the Agreement for Sale to determine when the sale deed is supposed to be executed. The buyer should then make a written request to the builder asking for a specific registration date and the reason for any delay.
If the builder continues to delay without a valid justification, the buyer can consider sending a formal legal notice and, depending on the circumstances, approach the appropriate RERA authority or consumer commission for relief.
The buyer should preserve the agreement, payment receipts, correspondence, demand letters, possession documents and any communications regarding registration.
The exact remedy depends on the reason for the delay and the terms of the agreement. In some cases, the buyer may seek execution of the sale deed, compensation, interest or other appropriate relief.
