• Agreement to sell- Advance paid to be demanded back

I have booked a Flat in Kochi , Kerala, 2 years ago and have paid close to 55% of the Flat value till date, although the construction have been completed roughly about 25%. The sale agreement has payment schedule based on completion of each floor slabs, So withe casting of every floor slab he demand certain % which means upon the completion of last floor Slab the builder gets almost 90 % of the value of the Flat, whereas the actual completion of the whole project may be only 60%.I haven't noticed this as the builder was from our know circle of relatives and friends. 

However Due to some change of my plans I want this booking to be cancelled and the money to be demanded back from the Builder:- 

My questions are ,

How do I approach the builder, I mean is there going to be a cost to me on this?
Can I get the money back with an appreciation in line with the current market value?
What legal options I have, if the builder refuses to cancel the agreement ?
Is it legally permitted for the builder to demand 30% more money than the actual % of construction progress?
If I continue with the agreement, do I have the option to pay the builder in line with the actual % of progress of construction?

Regards
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

1)if you cancel the booking builder will demand cancellation charges as per terms of agreement signed by you

2) you would not get any appreciation in line with current market value

3) if builder refuses to refund money inspite of cancellation of agreement by you seek refund of money with interest , litigation costs and compensation for mental torture undergone by you

4) terms of agreement are sacrosanct . you have to pay as per agreed terms although it may be more than construction done till date

5)you cannot pay builder in line with actual progress of construction

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1. What is the term ,mentioned in the agreement for cancellation of booking of the flat? Normally 10% of the total price is charged for such cancellation without any fault on the part of the builder.

2. For cancelling the said booking without paying any cancellation charge, you shall have to find out faults with the builder and/or his construction deviating what have been mentioned in the said agreement.

3. Once you find such acceptable deviation committed by the builder from the terms or specification mentioned in the agreement, you can file a complaint case before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice claiming refund of the money paid by you with interest and also opportunity cost (i.e. increase in flat price on your investment on pro-rata basis), damage and cost.

4. You can also bring it to the notice that the builder has deceptively got a clause inserted by which he will receive payment much in above of his expenditure on the project seeking cancellation of the said clause.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

You can first talk to the builder about your intention to cancel the booking and ask him to refund the advance amount.

If he is not agreeing to the oral request, then you may think about initiating legal process for refund by first issuing a lawyer's notice communicating your decision to cancel the booking and to demand the refund of the amount paid so far.

You must be contended if you get back your booking amount without any deduction.

Lawyer's notice and consumer forum for recovery.

What is the basis that the builder is demanding 30% extra other than the booking amount?

You may refuse to pay and ask him to quote relevant rules in this regard.

You may have to pay the amount as per the sale agreement.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

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