This agreement can only be cancelled in terms of the stipulations contained in the construction agreement.

Technically, at present, the promoter has still not breached the construction agreement, since he still have 6 months at his disposal.

Please reproduce the termination clause as contained in the construction agreement, so that concrete guidance can be extended to you.

Hello,

Yes you may definitely cancel the agreement.

Send a letter to him for the cancellation of the construction agreement.

there will be no legal complications for you since the builder has not completed the project on time.

Regards

Builder has been granted 3 years the me to construct the house

2) if builder fails to do so on expiry of 3 years you can cancel the agreement

Dear sir

We need to cancellation notice to builder also seeking compensation.

Documents needs to be scrutinized. Further

Feel free to reach us for further immediate action.

1. Yes this is mandatory

2. external agency does not mean that after 2.5 years the work has not started, he is not protected by this clause.

3. I would advise you to consult a CA in order to save the said tax.

Regards

Is the construction agreement registered?

2) builder is not liable if delay has occurred to reasons beyond his control ie force majeure conditions

3) best option is to cancel agreement with mutual consent

4) if builder refuses to agree then inform builder in writing that construction agreement has been cancelled as no work has been done till date on the site

1. Mere cancellation is not enough without refund of money. So send a notice of cancellation demanding return of money so far paid.

2. The inordinate delay in making the construction is good reason to cancel the agreement. If the builder refuses to refund the money file a case before the consumer forum wherein you are likely to be paid with damages and compensation apart from refund of money.

Please serve a legal notice of him since he has not performed his part of promise of delivering completed house as such you are cancelling the agreement to construct house and ask him to repay the.remaining amount of construction if you have fully paid him amount. Since he has registered property in your name you can't ask to return money of land. The clause mentioned by you holds no good in favour of builder since his duty is to do construction and he is no where involved in any external related factors except strikes. Time is essence of contract as such he cannot take that clause as his defence. If he does not pay money file suit for recovery of money

Dear sir

1. Builders will not give. We should create document. To get from builder needs to be handled.

2. This can be done if we pressure.

3. Yes. There is way showing partly in process of investment.

There are things to managed through builders. Court process may consume time. If necessary needs to take injunction against builders.

We will negotiate and manage the things in a better way and also create pressure on them.

Feel free to reach us for further action.

Dear Sir.

My answers are as follows:

1) Do we need a letter from the builder that the construction agreement is canceled ? Is this mandatory because the builder is not giving such letter.

Ans: You have to issue a legal notice first, if he did not reply or rely with untenable answers then you can cancel it by registering such cancellation deed.

2) The construction agreement has the caveats saying...builder is not liable for any external agency related delays. Has the builder protected himself with this clause and is not liable at all...though most of the delays are from his side ?

2) we want to cancel the construction agreement and invest the remaining money from the capital gains account on a 90% constructed flat/house and get the procession within the remaining 6months to save capital gains tax(on the remaining money).

Ans: Yes, you can.

3) We will have to pay capital gains tax on the money that we spent on the land...as we are cancelling the construction there. Is there a way out ?

Ans: Please get clarification with any Chartered Accountant. Please call me for any clarification.

what reason is being assigned by the builder for the delay. Does he have any valid reason at all for causing the delay. Is the delay attributable to something which is beyond his control or a natural calamity. If this is the reason, then the builder can take shelter and refuse to pay delay compensation.

However since he had committed to handing over possession within 3 years and now since it has been more than 2.5 years and not a brick has moved in the project, you are legally entitled to cancel the booking with this builder in the said project and seek full refund together with interest and compensation and damages as well.

You can issue a legal notice to the builder immediately and seek full refund, compensation and damages to be paid to you within 7 days, failing which you can approach the Consumer Court and seek these relief's from the court together with litigation expenses.

In the mean time before expiry of the 3 year period, you can invest the remaining amount that is kept by you in the capital gains account into another project to save on Capital Gains Tax. You do not need any letter or certificate from the builder. The notice of cancellation is sufficient to reinvest this into another project.

1. No, this is not necessary, You can unilaterally rescind this agreement, provided the agreement permits you to do so.

2. This definitely gives some oxygen to the builder.

We want to cancel the construction agreement now as we do not have any confidence on the builder. Please let us know if we can cancel the construction agreement now.

What are the legal implications ?

If you do not want to continue with the booking for the reasons that you rely upon, you may communicate your decision for cancelling the booking by a registered post letter and demand refund of booking amount in full since he has not fulfilled the commitment and has not even started the construction.

Let him give a reply after which you can plan further course of legal action on this for releif and remedy.

1. You have to give a notice cancelling the booking or the sale agreement.

2. He has to state that for what type of external reasons this construction has not been started yet, he should justify the reason.

2. You have to see that what was condition precedent to avail the exemption from being taxed under capital gains tax especially after withdrawing the booking and what are all the other possibilities to save them.

3.Cancellation of booking is a clear indication that you did not avail the benefits as prescribed in law for claiming exemption under income tax laws.