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

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 moneycontrol.com 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