• Refund of booking amount

I booked 2 apartments by paying 5 lakhs each in Sept 2017. I haven’t signed any agreement with the builder yet.I want to cancel the booking due poor financial conditions and get full refund, but the builder has made me sign a clause that the 100% booking amount will be forfeited if I cancel the booking. What are the chances of getting my money back. ?
The property is RERA Registered.
Asked 5 years ago in Property Law
Religion: Hindu

3 answers received in 2 hours.

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20 Answers

Do Not worry such agreement will have no effect.

Forfeiture of entire amount on cancellation is agreement is not permissible under agreement even if one of the aprties under forceful circumstances signed the clause containing such forfeiture clause.

Sp send him a legal notice claiming refund of your earnest money.

Once the builder refuses to doso file a case before the consumer forum wherein you will get not only the refund of money but damages and compensation in addition tot hat.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
416 Consultations

5.0 on 5.0

Respected sir..

As it is clearly mentioned by you in your question that builder had made you sign in a clause and than 100%amount will be forfeited..Sir you had given your consent in the contract without any undue influence so here you are not legally eligible to go against him in any way but yes you can sue his if you have some Genuine reason..

Other options convince the builder to cut short amount and pay the remaining..

Thanku

Dinesh Sharawat
Advocate, Delhi
1259 Answers
12 Consultations

4.9 on 5.0

1. It is most unwise to pay anything to the builder without an agreement being made.

2. 'Poor financial condition' is ipso facto not a ground to seek the refund of the booking amount. If you have signed a document which contains a clause of 100% forfeiture then it is ordinarily binding on you, but you can challenge the clause in the court through a suit for recovery of money as 100% forfeiture is usurious.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

You would not be entitled to any refund as your agreement contains a clause that booking amount would be forfeited if you cancel the booking

Even if you file complaint before RERA you would not get any reliefs

Ajay Sethi
Advocate, Mumbai
89848 Answers
6516 Consultations

5.0 on 5.0

I would advice u to sell the premises to any third party. The builder might willingly transfer it. If u cancel he can forfeit the booking amount if not completely then partially. Kindly contact me for further details about the property. I might be able to help to sell.

Jenal Busa
Advocate, Mumbai
14 Answers
1 Consultation

4.8 on 5.0

No one enjoy at the cost of another, this is the concept under Law.

File a complaint under section 29 of RERA for recovery of the advance amount paid.

Under RERA if a builder is receiving more then a 10% of the sale price for the unit, the builder shall register the sale agreement. If the builder is fails to do so, the builder will the penalised.

Rajashekar
Advocate, Bangalore
584 Answers
4 Consultations

4.8 on 5.0

Hi ,

You must have signed an application form for booking the flats.

The application form may have clause for the forfeiture of the application money.

I advice you to try to sell the apartment and get the booking transferred to the buyer.

Thanks

Vimlesh Prasad Mishra
Advocate, Lucknow
6849 Answers
23 Consultations

4.9 on 5.0

Dear Client,

By what mode u have made the payment, RERA relief is available on default of builder but here u stepped back.What are the terms of agreement. AND what financial crises. If major in nature,

Than plea of force majeure may help u recover amount.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

If you have not signed any agreement with the builder, from where do you say that there's a clause permitting the builder to forfeit your earnest/advance deposit?

Please clarify.

For now, send a legal notice to this Builder seeking full refund of your deposits together with interest.

You'll will have to knock the doors of Court(RERA) in case even the legal notice fails to move this builder.

Vibhanshu Srivastava
Advocate, Lucknow
9444 Answers
255 Consultations

5.0 on 5.0

If you are not claiming the refund for any fault of the builder then the builder will have the right to forfeit the booking amount.

Have you signed the application form

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

Alternatively at this juncture you can ask the builder to transfer the booked premises to the third party and you can take that booking amount from the third party.

Regards

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

Hello sir , as per RERA provisons the clause of forfeiting the amount is void .. It is advisable to approach RERA and file a complaint against the builder

Hemant Chaudhary
Advocate, Gurgaon
4627 Answers
67 Consultations

4.9 on 5.0

Better file complaint before consumer forum and seek orders to direct builder to refund your money with interest

You would not get any reliefs from RERA as mentioned herein above

Ajay Sethi
Advocate, Mumbai
89848 Answers
6516 Consultations

5.0 on 5.0

If the application form has this clause of forfeiture of money then the DCF will also not be of much help.

Take care of the fact that if the cost of the flat is above 20 lakhs then the case will have to be filed in the state consumer forum

You can definitely go ahead and take a chance.

Regards

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

If the application form contains this stipulation, it is difficult that your claim will succeed. If there are rulings to the contrary passed by RERA, it'd be wiser to approach the Consumer Forum.

Take your chance and file a case in the consumer forum seeking full refund.

Vibhanshu Srivastava
Advocate, Lucknow
9444 Answers
255 Consultations

5.0 on 5.0

Respected sir ..

You have signed the paper's and clause in which it is mention about the refund of money is also included ..Sir you have made mistake firstly acpt it and then hire an good advocate and take a solid excuse and then file the case in DCDRF ...And let's see what the court think but law only works on bases of evidence which is against you ...But you had option so you can try...

Thanku

Dinesh Sharawat
Advocate, Delhi
1259 Answers
12 Consultations

4.9 on 5.0

Approach the RERA authority or the Consumer Forum both the Court are swift and fare in trial.

Rajashekar
Advocate, Bangalore
584 Answers
4 Consultations

4.8 on 5.0

y consumer forum will entertain ur plea, buyer is not at default, Non of his act comes under unfair trade practice, deficiency in service or like

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

The clause made by the builder is arbitral and not tenable in law.

You communicate your decision to cancel the booking by registered post and seek refund of booking amount.

Failing to get favorable response, you may drag him to consumer forum seeking relief and remedy.

T Kalaiselvan
Advocate, Vellore
80015 Answers
1674 Consultations

5.0 on 5.0

RERA still allows cancellation and refund of booking amount even if you have volunteered to cancel the booking on your own, by allowing certain deduction, you don't worry on that count now itself

First you initiate steps from your side properly and then decide about further legal actions.

T Kalaiselvan
Advocate, Vellore
80015 Answers
1674 Consultations

5.0 on 5.0

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