See the cancellation can be as per the agreement only as you have already registered the undivided share same cannot be cancelled , for delay in construction you can seek compensation from the builder by filing consumer complaint for deficiency in service. The builder has to complete construction and give possession in prescribed time frame.
Cancellation of construction agreement
Sir, myself nagendra varma from Vizianagaram,Andhra Pradesh. Sir in july 2018 i have purchased a flat in a apartment. i have done sale deed for undivided share from the site owner, done construction agreement with the builder and mortagaged to one nationalised bank for loan. almost 8 months have been completed but the builder did not complete the work atleast to the sanctioned loan. Now i would like to cancel the purchase and would like to get the refund.. kindly suggest on the issue
Asked 6 years ago in Property Law
Religion: Hindu
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8 Answers
In event you cancel booking builder can deduct 10 per cent of booking amount as cancellation charges
i presume project is registered with RERA
1) Issues here are now you can't cancel the sale deed agreement with builder. Because you will lose all stamp duty and registration charges you have invested for undivided share and construction agreement plus nationalised bank loan etc.
2) Here you can save your self by way of selling the property to new buyer along with the bank loan.
3) You need to take permission from builder and bank to sell this property.
if you cancel the booking for a registered project, the promoter has to refund the amount collected after deducting any cancellation or forfeiture charges stipulated in the agreement to sale/allotment letter.
Cancellation of booking will purely be governed by the contract between you and the promoter and if the contract stipulates 100% forfeiture of booking money, then you might not have any recourse under RERA.
A legal notice should be sent to the builder immediately and if he does not respond a complaint should be filed in the rera tribunal immediately detailing all the issues and praying for a speedy relief.
Regards
You can file a complaint to consumer court or rera against the builder
- Yes, you have the option to cancel the agreement or get the agreement complied by the builder if builder breaches any of the terms of the agreement.
- You may have to file a complaint before the state consumer forum for cancellation of the agreement and refund of money including the compensation for delay and mental torture.
- If the builder insists on getting the compensation and possession within a new stipulated time then it would upto to you to cancel it or continue with it.
You can very well cancel the booking but the builder will deduct a good amount since the cancellation is due to your own decision and not because of any fault on the side of the builder.
If terms for cancellation are missing then 100 per cent refund can be claimed from the developer. In case a developer refuses to repay the booking amount even with a clause present in the agreement, the buyer may file a case with the consumer forum asking for a refund with interest.
Since cancellation of flat before agreement would be subject to the terms and conditions of the clauses being mentioned, it becomes necessary to do a thorough reading and analysis.
