Builders are taking six to eight years time period in agreement to safe guard their liabilities against delayed possession. Though oral commitments are for two years but on paper, time duration to complete projects are written and taken not less than six years.
Recent circular from ICICI Direct by ICICI Homes Search said that an unnamed project in Mulund , Mumbai is ready for sale possession of which will be in year 2020. The three BHK apartment project is now costing 2.25 crore which is almost 100% more than the market rate prevailing in the area.
It is now a common practice in all cities of India where builders are drafting one sided agreements and while putting all safety clauses like Escalation and impossibility of performance, delivery of possession is kept at six to eight years away to take care of their delayed liabilities.
Although model agreements are provided in most of the state housing Acts but one sided agreements are still signed by customers who do not have any choice but to take builder’s words.