Delayed completion, what your contract says versus what the developer promised

Key rules

• Delivery date: The date in your signed contract counts, and verbal promises from the developer do not change it.
• Refund interest: Refunded advance payments carry legal interest of 3.25%, counted from the date of each payment.
• Grace period: A clear, defined grace period is usually valid, but it does not remove your right to terminate afterwards.
• Timing: Claim against the bank or insurer before delivery, because the guarantee ends once the home is delivered.

Your rights come from the contract, not from promises

The date written in your signed contract is the date that counts. A salesperson's message, an email saying "a few more weeks" or a verbal promise does not change it. If the developer misses the contract date, you have legal options. Your first step is to find the delivery date and any grace period clause in your contract.

What you can do if the date is missed

You have two main choices:

• End the contract. You terminate, get back what you paid, and can claim damages.
• Demand delivery. You keep the contract and require the developer to finish, and you can still claim damages and interest for the delay.

If you paid advance payments, you also have a special route. You can end the contract and demand those payments back, plus interest, when building did not start or finish on time, or the occupation licence (the licence that allows people to live in the home) was not obtained on time. A bank guarantee or an insurance policy must cover those payments.

Damages can include costs the delay caused you, such as extra rent, storage and financing. Keep the invoices.

Grace periods

Many contracts allow extra time after the stated date, often 3 to 6 months and sometimes up to 12. A clear, short, defined grace period is usually valid. Wait it out before you act.

A grace period does not remove your right to terminate afterwards. Open-ended extensions, such as "delivery when the works are finished", or extensions the developer can decide alone, are generally void as abusive under consumer rules. Whether a clause is valid depends on its exact wording, so have a lawyer read it if the developer relies on one.

Getting your money back

Refunded advance payments carry legal interest of 3.25%, counted from the date of each payment. Your contract may set a higher penalty rate, which can apply if it is not abusive. If you go to court, the judge may add further interest from the judgment.

To claim from the bank or insurer:

1. Send written notice to the developer ending the contract.
2. Demand that the bank or insurer repay your advance payments.
3. Keep proof of every payment and of your notice.

Do not wait for the keys to be handed over. The guarantee ends once the occupation licence is obtained and the home is delivered. Court claims have a time limit. The general limit for these claims is 5 years from the date you could first end the contract. Check the deadlines in your own guarantee or policy with a lawyer.

What the 10-year guarantee does not cover

The 1-year, 3-year and 10-year building guarantees cover defects found after delivery. They do not cover late delivery.

The steps and dates are in the timeline below, and the documents to collect are listed after it.

Timeline and deadlines

• Note the delivery date in your contract: as soon as you sign

• Wait out any clear, defined grace period in your contract: typically 3 to 6 months after the delivery date, sometimes up to 12

• Decide whether to terminate or demand delivery, with damages: once the delivery date and any grace period have passed

• Send notice to the developer and demand that the bank or insurer repay your advance payments: as soon as you choose to terminate, and before the first occupation licence is obtained and the home is delivered

• Bring any court claim before the time limit ends: within 5 years of the date you could first terminate

Documents you need

• Your signed purchase contract, issued by the developer, showing the delivery date and any grace period clause.

• The bank guarantee or insurance policy covering your advance payments, issued by the bank or insurer through the developer.

• Proof of each advance payment, such as bank transfer receipts, because interest on a refund runs from the date of each payment.

• Your written notice to the developer ending the contract and demanding that the bank or insurer repay you.

• Invoices or contracts showing extra costs the delay caused you, such as rent, storage or financing, if you also claim damages.

What to watch out for

• Verbal promises do not protect you: A new delivery date promised by a salesperson or by email does not change your contract. If you rely on it and wait, you may lose time and leverage. Ask for any new date in a document signed by the developer, and keep working from the contract date.

• Open-ended extensions are not binding: A grace period that is open-ended, set by the developer alone, or that removes your right to terminate is abusive and void. A short, clear, defined grace period is usually upheld. Do not sign an addendum that extends the date without a fixed end. Have a lawyer read it first.

• The refund guarantee ends at delivery: The guarantee on your advance payments is cancelled once the first occupation licence is obtained and the home is delivered. Waiting too long can leave you without that protection. Keep a copy of the guarantee and send your notice to the developer and the guarantor as soon as you decide to terminate.

• Your contract may set a higher penalty rate: Developers sometimes write a higher penalty interest rate into the contract. It is valid if not abusive, and it can differ from the refund interest set out in the article above. Read the penalty clause before you sign, and ask the developer to explain any rate above the legal one.

Frequently asked questions

Does a grace period stop me from ending the contract?

No, a grace period only delays your right to end the contract, it does not remove it. Grace periods of 3 to 6 months are common, and sometimes up to 12. Once the defined period has passed without delivery, you can terminate.

How long do I have to claim my money back from the bank or insurer?

You have 5 years to claim, counted from the date you could first terminate the contract. The guarantee is cancelled once the first occupation licence is obtained and the home is delivered. So send your notice early, and check any deadline written in your guarantee document.

Can I claim compensation on top of getting my payments back?

Yes, you can claim damages for the losses the delay caused you, whether you terminate or demand delivery. These can include extra rent, storage costs and financing costs. Keep the invoices and contracts that prove each cost.

Does the 10-year structural guarantee cover a late delivery?

No, the 1-year, 3-year and 10-year building guarantees only cover defects that appear after delivery. For a late home, your remedy is to terminate or demand delivery under your contract. The refund guarantee on your advance payments is a separate protection.