Hi, either you can ask for the refund of the amount that you have paid till now alongwith interest .. You can cancel the bank loan .. 2) the second option is to file the case after the date of posession and ask for compensation ..
Cancellation of flat booked under scheme of No EMI till possession
Hi, In July 2015 I booked a flat in Pune with DSK developers under their scheme "No EMI till possession" . The cost of flat was around 45 Lakhs and I paid 10% amount of it (i.e. 4.5 Lakhs) before the agreement. Then a home loan was sanctioned by HDFC for remaining amount. Post sanction of loan we did agreement which was registered by paying Stamp Duty etc. The deal was that developer will pay all pre-EMI's till possession and I will have to pay EMI's only after possession. It was going fine till November 2016 and then the builder got into financial problems due to various reasons. Present status is that EMI's were missed on multiple occasions. Part of it got paid eventually. Until now HDFC has not asked me to pay anything but they just keep sending SMS intermediately. The original possession date promised was May 2018. Now when I look at RERA Maharashtra site, I can see that the completion date is showing 2021. With all this, I am now thinking of cancellation of this flat as I see this going beyond the limit of what I thought reasonable. Plus I can forsee further delays as the developer will sure take time to recover from his financial problems. In the agreement there is a clause of cancellation which says as below " in case of cancellation of the flat/unit the developer should refund the amount received from Purchaser subject to deduction towards the loan amount with interest if any in case the unit is mortgaged, stamp duty, registration charges over these presents, all taxes levis, duties, incidental charges of the registration etc. Further the amount of stamp duty, registration charges and other incidental charges towards cancellation deed shall also be deducted from the amount paid by the purchaser till date and the developer shall refund the remaining amount to the purchaser within 60 days as mentioned by cheque from the date of registration of cancellation deed. " Now I understand that there could be significant deductions from the amount I have paid myself (i.e 4.5 Lakhs). But I am not sure what happens to the HDFC loan. How it get cancelled from my name and do I have any liability towards the pre-EMI's or interest amount paid. Looking forward for your reply on this.
Asked 8 years ago in Property Law
Religion: Hindu
6 Answers
It is necessary to peruse agreement signed by you with builder to advice
2) there must be clause in your agreement with HDFC that in event of cancellation of booking you would be liable to repay the bank loan EMI paid to the builder in event builder fails to Refund the amount paid by HDFC
3) contact a local lawyer
In the alternative you can opt for facility review of legal documents from Kaanoon .com
Forward agreement to lawyer for his opinion on payment of fees online on the website
Hi, Thanks for the detailed answer. I checked my document folder and realized that I have only agreement copy of my agreement with the developer but could not find a copy of my agreement with HDFC. Is this something HDFC generally give to the customer or is this something I should now ask for a copy ?
Asked 8 years ago
You should write to HDFC and seek copy of agreement
HDFC ordinarily would give buyer copy of loan agreement
Now I understand that there could be significant deductions from the amount I have paid myself (i.e 4.5 Lakhs). But I am not sure what happens to the HDFC loan. How it get cancelled from my name and do I have any liability towards the pre-EMI's or interest amount paid. Looking forward for your reply on this.
If the loan was by a tripartite agreement, then the builder is liable to refund the same consequent upon the cancellation of booking however you have to initiate the refund process by the builder to the bank or else the bank catch your neck.
You may visit the conditions for loan repayment on cancellation of booking.
Thanks for the detailed answer. I checked my document folder and realized that I have only agreement copy of my agreement with the developer but could not find a copy of my agreement with HDFC. Is this something HDFC generally give to the customer or is this something I should now ask for a copy ?
Before deciding to cancel the booking you may clarify the loan repayment on cancellation with the bank based on the loan agreement that you have signed with the bank and also by the builder on a tripartite arrangement.
You can ask for a copy of the agreement from the bank.