• Cacellation of registered sale agreement of under constru flat

I have purchased an under construction flat under 5:65:15:15 scheme, builder has entered in triparty agreement and also signed as guarantor. I have paid my 5% and bank has disbursed around 27.00 lacs. However due to my person financial difficulties I am voluntary canceling the said agreement, which I informed to builder. Builder is saying that he will deducted 10% of the consideration value (mentioned in agreement) and refund the money back to bank. My questions are :
a. I have paid only 5% how he can deducted 10%
b. I am pying EMI for loan, can I stop paying EMIs since agreement would be cancelled. and inform Housing finance company about the same as builder is liable to refund amount paid by the HFC to HFC. 
c I spoke to builder, he says they deducted 10% and refund balance to the HFC, in such case loan won't be refunded in entirety, then HFC would release charge, what would be repercussion of the same.
Thanks in advance for your help
Asked 7 years ago in Property Law
Religion: Hindu

4 answers received in 30 minutes.

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7 Answers

a. It appears that you have already paid 70% of the total consideration including the bank disbursement which stands as loan in your name. So. the builder can easily deduct 10% of the total sale price and refund the balance amount of 60% to HFC while cancelling the said flat.

b. You can inform the HFC about the said cancellation but please note the you shall stand as a defaulting before the HFC liable to repay your loan and your CIBIL score will nosedive.

c. You shall stand as willful defaulter before the HFC who can file a suit against you claiming refund of the said balance 5% and interest thereupon for which the Court may pass order for attaching your other properties.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

If there is cancellation clause in contract then builder can on cancellation deduct 10 per cent of total consideration

2) you should not stop paying any EMI till agreement is cancelled

3) inform the HFC about your discussions with builder for cancellation of agreement

4) if loan disbursed is not repaid in full you would still be liable to pay HFC balance amount of loan outstanding

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

Cross check with HFC what would be liability in case agreement is cancelled and 10 per cent deducted by builder

2) then only take call of cancelling agreement

3) don't stop paying HFC EMI at present

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1. Well, the agreement is to be seen to find out the cancellation policy .

2. Your payment of 5% has consideration on the amount of deduction.

3. If the cancellation is from your end then you can not avoid deductions.

4. If you stop EMI then bank will attach the flat and since it is not fully paid the bank will recover the amount from you or the guarantor, if any.

5. negotiate with the builder and reach to an amicable solution.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

1. you can stop the EMI and surrender the flat to bank because this loan is a mortgage against property.

2. in this case bank can resale this property or builder can re-register this property to another buyer.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1. The builder may deduct the 10% amount while repaying the bank, the balance amount if any has to b paid by you to the bank.

2. You may have to continue to pay the EMI till the builder is making payment to the bank, the excess paid if any can be recovered from bank by you directly

3. You would be required to make good the balance if any due to the bank.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

The calculation is to be made as per the practical situation about the EMI repayment especially when you have already paid some amount out of yor pocket.

Verify the calculations given by the builder and the bank and point out the irregularity if any found by you in this regard.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

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