Yes, indeed, cases of developers suing homebuyers are rare but there are instances when such a thing has happened. It would be interesting to note that homebuyers can also be sued on numerous grounds.
For starters, it must be understood that homebuyers must clear all the installments as stated in the agreement before the possession of the property. In cases of delays, the buyers are required to pay the interest with the principal amount. RERA provides the developers the right to complain if the allottee refuses to part with the balance amount along with the contractual interest and does not take over the possession of the property.
Section 13 of the RERA Act makes it mandatory for both the developer and the buyer to respect the agreement and in case of any failure on part of the buyer entitles the developer to reach out to the RERA authority for assistance.
Section 19 (10) of RERA makes it mandatory for the homebuyer to take possession of the property within two months of receiving the occupancy certificate, in case he falters to do so despite being repetitively informed, gives the builder the right to initiate appropriate legal action against the buyer.
The developer can also approach the civil or criminal court for appropriate relief. He can also approach the real estate regulation authority under the concerned state and sue the home buyer in case he violates the sale agreement.
Though cases, when the developer has sued a homebuyer, do not readily comes to mind, yet such incidents have happened on quite a few occasions over the years. The reputation of the developer as well as the evidence provided by the developer is the deciding factor that ensures whether the judgment comes in their favor.
