• Seeking refund from builder, post cancellation of a booked flat

Sir, Last June, I had booked a flat in Chennai (Mantri is the builder) by paying an advance amount of 3 Lakhs. Couple of months later, as I was in the brink of losing my job, I decided to cancel the booking and sent a cancellation request mail to the builder. The builder kept dragging the issue for the next 3 months without confirming if they would really refund my money. After 3 months of struggle with the builder, they convinced me to retain the booking. In July 2018, I lost my job and 2 months later I relocated to Pune after finding a new job. I decided to cancel the booking thinking, the Builder would return back my amount looking at my financial status. The Manager also committed us verbally to return the full amount without any penalty after listening to my story. Now after following up since last 2 months, it is found that the Manager has left the company and there is a new Manager. He is asking me to pay 10% of the booking amount. I have not signed any Agreement with the Builder. I would like to know, if there is any way to get the complete refund without any penalty charges ?
Asked 4 years ago in Property Law
Religion: Hindu

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17 Answers

what were terms and conditions of booking ?

2) is there any clause that on cancellation 10 per cent booking amount would be forfeited

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

Sir what are tems of booking form.

If there is no condition and there is no agreement signed you are entitled to compelte refund though the builder if condition are there can forefiet the 10percent of the booking amount.

Further ask them to pay and settle if they delay file a complaint before consumer forum

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Sir since the condition of the booking form shall be applicable the builder can forfeit the 10 percent amount of the booking on cancellation by you.

Further builder needs to refund the amount within 45 days from such cancellation otherwise he has to pay interest.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

you would not get complete refund

2) 10 per cent of booking amount would be forfeited

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

Dear Client,

Under TN RERA rules Consequent to termination by allottee for no fault of builder, he is entitle to deduct the booking amount, So it is advisable to get the refund with 10% deduction, not bad deal.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Whether or not you can get the full refund without any deductions, depend on the terms and conditions of the booking form/allotment letter you signed at the time of booking this flat.

Having said the above, send a legal notice to this builder and seek full refund of your booking amount.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

This will be governed strictly in accordance with the conditions contained in the booking form, which you must have signed at the time of making this booking.

Send a legal notice as advised.

Approach RERA incase they choose to ignore your legal notice n

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Sir,

Know while cancelling an apartment booking

With the growing number of real estate projects, there has been an increase in the number of cancellation usually due to project delays. The reasons can be different like change of plans, project delays, not meeting expected quality, or even a financial crunch. In case if you are looking to cancel your apartment booking because of any legitimate reason like a prolonged delay, there are a few steps you need to follow to make sure you get the full refund of your booking amount. Here are five things you should know when cancelling your apartment booking.

Know your rights as per the builder agreement: The first thing you as a buyer must be aware of before considering cancellation of your apartment or any other property is the fundamental right as a buyer. Usually the sale agreement or the property allotment document contains a detailed clause pertaining to cancellation of the booking in the future.

If you want to cancel your booked property, all cancellations would need to follow the pre signed clause as per the agreement. Make sure to read the cancellation clause in the sale agreement to understand the amount the builder is liable to refund in case of a cancellation. Usually if the developer does not commence construction within one year of issuing of the allotment letter, the builder is liable to repay the booking amount with a simple interest of 6% per annum.

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.

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Following examples make you clear.

Cancelling an apartment booking?

Saurabh from Bangalore booked an apartment in January 2014 after taking a home loan from a well known bank. However, now he wants to cancel the booking and is ready to bear the necessary monetary loss. He wrote to Magicbricks.com enquiring about his available options while cancelling the booking?

Buyers like Saurabh, who due to various reasons, are forced to cancel their booked property. However, the path to booking cancellation is unfamiliar to many.

Sometime issues such as delayed project and exuberant cancellation fees being charged by builders are faced by such buyers.

Following are some circumstances that buyers can identify and their solutions with while cancelling their booking.

Asha Nayar Basu, partner, S Jalan & Co, a legal firm in response to Saurabh's query says, "Carefully go through the sale/ allotment agreement on the clause pertaining to cancellation of the booking. It will be as per the agreement. Some ag ..

There are others who did not sign any agreement or did not have a clause of cancellation of the agreement. Take for instance Dharmesh, who entered into an agreement for an under construction flat. His agreement had no provision for cancellation. In such cases Basu advices, "In case there is no clause for termination or cancellation, you can cancel the same on certain grounds of impossibility to perform the same, which can be made out from the agreement. However, if the agreement is cancelled on ..

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

The builder cannot forfeit the booking amount or 10% of it is there is a genuine and strong reason for you to not go ahead with. If the builder is insisting to forfeit then you can telll him that you will approach proper legal forum and take legal action. if he doesnot agree then you will have to take the next legal course of action.

you will have to approach the RERA or Consumer court.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

if the property is rera registered file a complaint with rera. else you can file a complaint before consumer forum. you will get the full booking amount.

Prashant Nayak
Advocate, Mumbai
27275 Answers
88 Consultations

4.4 on 5.0

Hello,

you may file a case before the RERA in order to claim complete refund if in case no document has been signed by you.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

If you have signed such document mentioning that 10% will be deducted at the time of cancellation then the same become binding on you.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

If you have signed the booking form where the cancellation charges of 10% are mentioned, you have no recourse against the builder now for full refund. You may, however, negotiate with them for a nominal fee explaining your current career and financial status.

Swaminathan Neelakantan
Advocate, Coimbatore
1923 Answers
20 Consultations

4.9 on 5.0

If you have not entered into any agreement then ther will be no conditions that will bind you.

You can write to the builder intimating your decision to cancel the booking and demand the refund of the booking amount, send the communication by registered post.

If he is still dodging the payment, then you may issue a legal demand notice through a lawyer after which you can resort to legal action either through consumer forum or civil court by filing a money recovery suit.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

In the absence of any T & C or agreement of sale, you may claim full refund, let the builder quote the clause and deduct the same, you can initiate legal action on that after that.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

Adjusting 10% of the advance, balance should be refunded failing which initiate a consumer complaint.

Rajaganapathy Ganesan
Advocate, Chennai
2085 Answers
8 Consultations

4.9 on 5.0

Dear Sir

You can win if you approach Consumer Forum/ Court

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

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