• Flat cancellation

I want to cancel my booking and has yet not signed any builder buyer agreement.
They are saying 10% of amount of flat will deduct frm amt deposited.
Pls guide how to go by so that my amount is not deducted
Asked 4 years ago in Property Law
Religion: Hindu

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15 Answers

1. Well, if the cancellation is immediate after booking the flat then the developer can not deduct any money.

2, Generally on cancellation that developer can deduct a portion to defray their processing costs and if the date of cancellation is after a long time then the deduction should be more.

3. So in your case the demand of the developer is not justified and without any basis of law.

4 If the builder refuses to make full refund then you can file a case before the consumer forum and seek additional damages,

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

What were terms and conditions of allotment?

2) if there is such a clause builder can deduct 10 per cent of money paid by you at time of cancellation

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

How much money have you paid as a token ? By what mode ? If you have not signed any document regarding deduction of token receipt money in case of cancellation then it is totally illegal if they are saying so.

Jitender Kumar
Advocate, New Delhi
35 Answers

4.0 on 5.0

Hi, it is advisable to issue them a legal notice for the refund of amount .. Kindly share with me the details to proceed further..

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

Hello Good Evening,

If you haven't sign any where at the time of booking then you have nothing to worry .

If the builder denies to refund then give him a legal notice and sue him if not complied.

Hope this helps.


Swarupananda Neogi
Advocate, Kolkata
2941 Answers
6 Consultations

4.7 on 5.0

Hi, Once you paid the amount normally builder will deduct the amount so better first collect the amount from the builder then you can file a Complaint before the Consumer court for deficiency of service for not refund the full amount.

Pradeep Bharathipura
Advocate, Bangalore
5399 Answers
310 Consultations

4.5 on 5.0

- There is no guideline for refunds all deposited amount and also for deduction of any amount but once you have signed the sale agreement, you are legally bound to follow it.

- As per courts, in some of the cases developer are right in deducting the booking amount in the event of cancellation.

- Legal standing on deduction of Earnest Money varies from case to case.

- In case an agreement containing earnest money clause is not signed between the buyer and the developer, the developer can’t deduct earnest money on booking cancellation.

- Since, you have not signed any builder buyer agreement , then the Builder can’t deduct any amount from the deposited by you.

Better you should give a written notice to the Builder after narrating the fact , that as per law ,he has no right to deduct any amount as there is no signed agreement for the same .

If, the builder insist on cutting the amount , then you have to approach Consumer court of your area for the same.

Sure, you will get relief .

Good luck and dont forget to positive rating.

Mohammed Shahzad
Advocate, Delhi
9905 Answers
121 Consultations

5.0 on 5.0

Please note if you have not signed any agreement the builders demand for deduction of 10% from amount advanced by you is unjust. Send them legal notice seeking them to make.full payment of advance amount.

If they insist to cut the amount approach consumer forum seeking for damages also you can approach civil court for recovery of money.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0


If you are cancelling it without any fault of the builder then the builder will deduct the same on account of the administrative charges.

The same can not be avoided. However, if there is some fault of the builder then you are not required to pay the same.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

You must have the receipt of payment you made to the Builder that's receipt must containing a clause that in case of cancellation 10% of the deposit will be forfeited if there is nothing like that please send a notice to the Builder to refund your booking amount as you have not signed any builder buyer agreement if still there is a problem of refund please file a complaint in the consumer forum or the the state Commission as per the value of the property for refund of the amount paid, interest on that unpaid amount and compensation for the mental agony along with the legal charges for litigation. you may include all this in your notice as well

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1) If you have not signed any agreement and paid huge amount, you may make complaints in RERA office and consumer forum of your local city area.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

If it hasn't been agreed/documented in between you and the builder that 10% will be deducted at the time of cancellation, he can't make this deduction unilaterally.

In case he deducts and refunds, the concerned builder a legal notice.

If legal notice fails to help, approach RERA/consumer forum.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0


It is mentioned in any clause or not, if not then it is illegal and i suggest you to pursue a legal notice to him

and after that file a consumer case against that builder.

Tarun Agarwal
Advocate, Jaipur
769 Answers
3 Consultations

4.9 on 5.0

Firstly, see there must be an agreement to this effect if any.

Secondly, if not then they can’t do in fact if there is any then also this clause must be there plus your signature.

Thirdly, file a suit for illegal enforcement of the contract.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

The administrative cost deducted by various builders varies from one another.

Some deduct even 15%

If you feel that this is exorbitant, you may bargain and arrive at a negotiated amount.

It is mostly 5% of the booking amount but ther are no specific rules on the quantum

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

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