1) you have to inform HDFC that you have cancelled the agreement

2) out of refund received from builder you have to repay loan taken from HDFC

3) it is not in your interest to cancel the agreement now .

4) most of builders are facing financial constraints and there is delay in refund

5) in many cases flat purchaser has to go to court and obtain orders to direct builder to refund money

6) further you are losing 10 per cent of payment as cancellation charges

7) take possession of flat then sell the flat

1. What impact on the loan taken by you from HDFC you are talking about?

2. Ask the builder to refund you the money after making the said deduction within 7 days.

3. If the builder does not want to refund you the money paid directly by HDFC to them, hen ask the builder to return the amount paid by HDFC to HDFC directly and balance amount to you.

4. You shall have to collect the latest accounts statement of your loan account from HDFC and pay the entire amount i.e. accrued interest also.

5. After that do not neglect to collect the No-Due certificate from HDFC Bank to avoid any further future trouble in connection with our loan.

1) you can contact HDFC and inform them that you are planning to cancel the agreement and seek refund

2) check with HDFC whether you can continue to pay EMI and repay loan once refund is sanctioned by builder

3) inform HDFC that you have no objection if refund amount is directly paid by builder to bank in repayment of loan

1. The clause of refund after selling the flat to a third party is a dicy one and you are expected to be duped easily by the builder.

2. It will be beneficial and easier for you to make the balance payment and take possession of the flat through your authorised person and arrange to sell the same through net at your offered price which is 10% below the cost price.

3. On receipt of the buyer, you can ask your builder to register the flat directly in the name of your buyer thus managing to save the double registration expenditure i.e. one for your buying from the builder and the other for your selling to your buyer.

There is a cancellation clause in the agreement where it's written that 10% of the total consideration amount would be forfeited and the rest refunded, which I am fine with. I would like to know what impact would this have on the loan taken from HDFC? Can anyone please help me with this?

The loan is different to that of the cancellation of the booking or sale agreement.

Upon cancellation it becomes your duty to return the loan amount with interest till the date of discharge of loan amount in full.

The loan amount is for purchase of property, if the purchase is not materialized then it becomes your duty to repay the loan immediately in full, which was availed for this purpose.

2) The cancellation clause in the agreement says :- 10% of the total cost will be forfeited and the remaining refunded only upon counter sale of the said flat. This would mean that the refund will be made only after the flat is sold to a new buyer, which might take a few months. Under such circumstances, can I continue my normal EMI with HDFC (which I am already paying now) till the time the refund comes from the builder, and then pay off the remaining loan?

You can continue with the EMI repayment of loan until you get the case back after the booked flat is sold to a third person by the builder. There is nothing wrong in it, in fact it can be deemed that you have cancelled your booking only at the time when the flat is being purchased by a third person.

you should sell this property through any agent. the EMI will shift upon the new buyer if he wants otherwise you can pay remaining loan amount out of the sale amount. the condition mentioned in the agreement is inclined in favour of builder, if he refund 90% of consideration on the resale of the property so why does he deduct 10%. such deduction clause is invalid because if he commits that he will refund the said amount in stipulated time like 3 months then it is justified to deduct. you can challenge this clause but again it will take time.

in any every it will take time so it is good for you to contact a broker and sell it out.