News & Media 8th Jun 2022

Here is what you should know about oral promises made by real estate developers


Heena Chheda Partner | Mumbai

Latest Thought Leadership

Alerts & Updates 27th May 2024

Trade Update – May 27, 2024

Read More
Articles 27th May 2024

Revamping India’s Insolvency Framework: Challenges, Trends, and Strategic Improvements

Read More
News & Media 27th May 2024

Cost inflation index for FY25 higher than last fiscal’s

Read More
Alerts & Updates 24th May 2024

SEBI issues a flurry of changes to tackle material price movement due to market rumours and to ensure a level playing field

Read More

In a recent order passed by the Bombay High Court, the Honb’le court has held that a written agreement entered into by a developer and homebuyer cannot be substituted by a subsequent oral understanding. The ruling has protected the rights and interests of homebuyers. The question was whether the mere presence of a homebuyer at a meeting called by a real estate developer imply the purchaser has accepted an extension to the completion date of a delayed project the latter spoke about.

Against this backdrop, Heena Chheda, Partner at Economic Laws Practice (ELP) has been quoted by in their article titled ‘Here is what you should know about oral promises made by real estate developers’. Heena says, “Homebuyers should be careful and evaluate the risk of non-enforceability of an oral agreement versus what is captured in the written agreement or when the builder, after executing and registering a written agreement for sale, convinces the buyer to execute a written unregistered document to record an agreement that is different.”

Read the comment and detailed article here