• Cancelling of flat due to newly discovered flaw

I booked a flat in February this year in Bangalore. My bank loan EMI started in April and possession is slated for December 2018. Last week discovered that there is a large storm waster drainage next to the tower of my flat. Here are my concerns.
1. Its a bad sight as the large open “Nulla” is visible from the flat that falls right between the flat and acess road and clubhouse.
2. It smelled bad in current rainy season so much that the smell was noticeable even at 5th floor. It will aggravate in summer.
3.There is no guarantee that current storm water drainage can not be converted to a waste water and other waste drainage.

What are my options now. Can I back out of the deal and how much money will I get in return. What happens to the bank loan.
Asked 4 years ago in Property Law
Religion: Hindu

12 answers received in 1 day.

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13 Answers

1) you can approach builder to cancel the allotment of flat

2) builder would forfeit your earnest money as per terms and conditions of allotment

3) inform the bank not to make further disbursement of loan amount .

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

1. This is not a ground for unilateral cancellation of the flat by the buyer. You were supposed to conduct due diligence before signing on the dotted line. When you visited the obligation for the first time you were under an obligation to keep your eyes and ears open to now then you will get sore.

2. If you opt out now then you will nonetheless be liable to pay the EMIs to the bank as the loan has been sanctioned already. You have no remedy against the seller also.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

1)intimate builder in writing and builder will accordingly arrange to cancel the agreement for which owner and builder has to go to registration office to register the cancellation. Builder may deduct cancellation charges as per terms of the sale.

2)if the project has been delayed or has not started for a long time, buyers can ask for a complete refund.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

1. This sight or situation of the nullah must be temporary and with time it would certainly be repaired or covered by the local authority. So for this non permanent thing do not go for cancellation of flat.

2. You have taken the bank loan So even if you cancel the EMI will continue . That would hit you hard in your pocket.

3. Rather write to the Municipality either to relocate the nullah or cover it by making it a 'pucca' one.

4. I would advise you not to cancel the agreement.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Sir since the consumer/. Buyer has to take due diligence before purchasing now if you go for cancellation it shall be as per agreed terms between you and builder and they can forfeit the amount further the bank can be request to cancel further disbursement and loan needs to be closed.

Further for better appreciation of situation it would be better if you find third party buyer sell the flat close the bank loan this way you would escape the forfiet and loss of amount.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Hello,

You may first talk to the builder with as to whether he has any plan to cover it or convert it.

Thereafter send a letter for cancellation and refund.

If he does not do so then you will have to approach the consumer forum,

You will have to pay the EMI till the time the booking is cancelled.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

This is my response to you:

1. If you back out from the deal now, then the builder will forfeit certain money as per your agreement;

2. Since it is a nulla and is visible to the naked eye, you should have brought out this issue prior purchase;

3. You can ask the builder to see if he has obtained permission from the municipal authorities about the closure of the nala;

4. See if the OC clearance speaks on the same;

5. Also send a formal complaint to the municipal authorities to check this nala;

6. If nothing can be done and you do not want the builder to forfeit money then wait for some period and sell it to somebody else.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

You can back-out and seek refund of your payment subject to applicable deductions in accordance with the BBA you signed with the builder.

Once you back-out from the project, you may close your loon account/

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Sir,

The following information may kindly be read.

Cancellation possible on certain grounds of impossibility: If you did not sign any sale agreement or allotment agreement with the builder at the time of getting your allotment, there is still room for cancellation. Even in case there is no clause for termination or cancellation or you did not enter into any agreement with the builder, you are well within your right to cancel the sale on certain grounds of impossibility depending on the basic agreement between you and the builder.

In such a scenario, your grievance for cancellation should be a legitimate one, or else you may also face some legal implications of cancelling without any basis. Make sure to keep a copy of application form, allotment leer as well as the receipt for payments made to the builder to facilitate the cancellation process.

Seek legal help: Cancelling an apartment booking involves a number of legal formalities and it is better to get the help of a lawyer socializing in real estate deals. Even in case you may have everything in written from the builder and a genuine reason to opt for a cancellation, it is always a good idea to seek legal help before filling for any cancelation refunds request from the builder.

Getting a lawyer ion board can help you draft the cancellation letter and other communication with the builder without any legal loopholes that the builder may use to his advantage later.

Communicate with the builder in black and white: When opting for a cancellation f any apartment, there is no room for verbal communication or assurances. Irrespective of what the builder may assure you, make sure to get every communication in black and white.

Even if you are sending an email to the builder, it is recommended to get the mail drafted through your legal counsel. Such a communication I admissible in court and is useful in case of any dispute in refunding of the money by the builder.

Explore legal options by approaching a consumer court: If you are not happy with the money that the builder has paid you back on account for cancellation of your apartment, there is a case to approach the consumer protection court. You can take the payment from the builder under protest and file an application with your nearest consumer court seeking full refund from the builder. Make sure to have all documents in place before taking on the builder legally.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

1. did you visit the site?

2. if yes, was the construction of the building in which you booked the flat already started?

3. were you shown the sanctioned plans by the builder?

4. if the construction had already begun when you booked the flat, did you notice the nulla next to your building?

5. answer to these queries will help me to give better advice

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Hi, as per your BBA( Builder buyer agreement) you can surrender the flat .. Generally, there is a forfeiture of 10 percent of the total consideration amount .. You are entitled for refund of the balance amount from the developer

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

Dear Sir,

You get issue a legal notice and if it comes under RERA then your issue will be resolved within short time and you will entitled for 90 of paid amount atleast. Be assured that the builders do not wish to have litigations due to reputation issue and competitiveness among the builders.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

You may cancel the booking at this stage also, however you may have to repay the loan which was sanctioned.

The BBA including sale agreement or property allotment documents contain the clauses for cancellation. Go through the clauses where you will find subject to the terms mentioned.

It is usual for the builder to deduct an amount due to cancellation charges, and it is generally 10% of the cost of the apartment before refunding the amount.

Apart from this any taxes paid to government would also be deducted from the amount to be refunded.

There are no proper guidelines in this regard by government, hence it is the discretion of the builder. though RERA is helpful to some extent.

It is better to consult a local advocate if you plan to cancel the booking to avoid any glitches later on.

As per RERA, if a homebuyer defaults by not paying to the developer on time and such a default persists for an agreed upon the number of months, the developer can terminate the agreement and cancel the allotment made to the buyer.

The provision on cancellation is fair. “No buyer will want to give away 10 percent of the booking amount unless he is under pressure to exit. At present, there is no exit clause in the builder-buyer agreement, only a one-way entry for the buyer. A builder is allowed to return the amount in case he decides to discontinue the project,”

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

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