• Flat cancellation policy

Hello, 

I have paid booking advance and first instalment to builder Hiranandani but now for various reason i would need to cancel my booking and myself yet to sign sale agreement and send back to builder.

I have contact and requested to cancel my booking but they charging 10% of cost

Please guide
Asked 4 years ago in Property Law
Religion: Hindu

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23 Answers

Hi, as per the new RERA provisions,the builder is entitled to forfeit 10 percent of the booking amount ,if the allottes wishes to withdraw from the booking without any default from the builder 

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

You may intimate the builder in writing sent by registered post your intention to cancel the booking for the reasons you rely upon and demand return of booking amount.

Generally if the sale agreement has not been entered into, then the builder cannot deduct 10% of the booking amount, however you have the option to approach RERA  for relief if the builder is charging you exorbitantly.

 

T Kalaiselvan
Advocate, Vellore
84724 Answers
2172 Consultations

5.0 on 5.0

The agreement must have mentioned the cancellation charges. They shouldn't be so steep. But the agreement has to be honoured. Unless of course you want to file a case in the RERA tribunal and challenge the cancellation charges.

Rahul Mishra
Advocate, Lucknow
14083 Answers
65 Consultations

5.0 on 5.0

See if any booking form was signed and cancellation fee in same was agreed then builder can charge up to 10 percent on cancellation. If no terms and condition is agreed you can file a RERA complaint.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

I presume project is registered with RERA 

 

2) builder can deduct 10 per cent of booking amount as cancellation charges 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

1. Flats are booked under provisions RERA and RERA has provision that Builder may deduct 10% amount, IF the Flat Buyer cancels booking, without any legitimate reasons.

2. IF you have some documentary evidence that Builder's Project is not proper /illegal /not within time/ low quality etc.... THEN you are entitled to full refund, for which you will need to file grievance petition before local RERA authority or Consumer Court.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

1. What are those reasons?

2. If you decide to cancel without any fault by the builder then he can apply cancellation charges as mentioned on the booking form or in the brochure.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Did you signed any agreement for booking . If not you are not binding on their demand. If you are entered in to an agreement then you must follow the cancellation policy in the agreement .As per RERA , the builder has provision to deduct 10 per cent of booking amount as cancellation charges from buyer .

Ajay N S
Advocate, Ernakulam
4072 Answers
110 Consultations

5.0 on 5.0

Dear Client,

You may file a case against builder in RERA to exit from the project and get  of yourefund all amount.

Jaswant Singh
Advocate, Gurugram
929 Answers
2 Consultations

4.8 on 5.0

Dear Sir,

You are suggested to read the first document provided by the builder to check if any such clause is there of deduction of 10% of cost. However, it is also suggested that in some agreements there is mention of deduction of booking amount and the courts including NCDRC passed orders for such deduction based on being part of agreement. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

If the project is registered with RERA then you have to comply with the conditions  of same.

Under above circumstances, if you want to withdraw from the project (on your own) and cancel the booking the Builder can charge 10% cancellation charges.

In case, if you can attribute any delay or if any milestone is not completed by the Builder as per the Agreement, you can issue notice of cancellation and settle the same by mutual understanding.

In case if the builder fails, initiate legal proceedings by filing case in Consumer Forum / lodge complaint with RERA.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

They will forfeit your booking amount at the most. They will refund your instalment. You can approach consume court or Rera for the same if not refunded

Prashant Nayak
Advocate, Mumbai
31807 Answers
176 Consultations

4.1 on 5.0

Yes, there is rule to charge 10% to deduct. Kindly check 10% amount of what Advance amount or whole flats amount ?

 

This is very important ...you need to check there brochure of sale and terms and conditions of cancellation of flat.. So if you have not signed any Agreement to Sale, bot you must have signed booking form, which is considered as related to advance payment 10% can be accepted .

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

1. Well any cancellation of booking or sale of a flat unilaterally by the buyer may entail deduction of money while refunding money. 

2. However the amount of deduction would depend on the terms of settlement.

3. So if deduction of 10% is mentioned in the allotment letter then you are bound to do so. Else you can refuse to do so. 

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

On what basis he is asking you to pay up 10% of the cost, when the the sale agreement hasn't been entered into till date(as you have not signed it as of yet). At max he can forfeit the money that you have paid him till date; but even that wouldn't be a legal move. Cancel your booking with him and seek full refund of the money that you have paid him. This must be done through a lawyer's notice. 

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

Hi

Send them a legal notice regarding the deduction of 10% of cost, if it works than ok otherwise file a complaint to the registrar cooperative socities

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Cite force majure reason to cancel booking and false promise by builder. Than cannot charge 10%.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

* There is no guidelines laid down by the government to forfeit the booking amount for the cancellation, and the deduction is done at the builder’s discretion.

- Hence, legally, the builder cannot deduct any money out of the advance payment you have made for the booking ; a builder-buyer agreement is made and registered with the sub-registrar.

- Further, A builder-buyer agreement is not created until the buyer pays at least 10 per cent of the property value.

- Further, as per Real Estate Regulation Act (RERA), home-buyers can cancel allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. The builder is bound by law to return the money collected from buyers within 45 days.

- Since, you have not signed the sale agreement till now, and further if you have already paid 10 percent of the flat value , is not registered in the office of the Registrar , then you are liable to get full amount refund paid by you ,even there is a clause present in the agreement for not refunding. 

- It means that if the said sale agreement is registered , then builder has right to deduct booking amount from the paid amount, otherwise no.

- If, builder not refunding the total amount paid by you, then you should lodge your complaint before the Consumer court , and thereby prayed for the refund of paid amount with interest.

-Further, if you cancelling the agreement due to the fault of builder like delay in possession etc, then the builder is bound to refund the entire amount with 10% interest .

 

Good luck and dont forget to rating Positively. 

Mohammed Shahzad
Advocate, Delhi
13105 Answers
195 Consultations

5.0 on 5.0

The sale agreement entered into with the builder has to be studied. If there is a clause stating that refund of the advance is subject to 10% deduction upon cancellation, you are liable.

Swaminathan Neelakantan
Advocate, Coimbatore
2773 Answers
20 Consultations

4.9 on 5.0

1. You can challenge builder decision because you have not signed the booking agreement till date but you should have paid the money at the time of signing the agreement.

2. But if you have recieved the agreement and didnt refuse the deal till date then it will be presumed that you have accepted the terms and conditions of agreement and if cancellation policy states the deduction from booking amount than builder can deduct the amount. 

3. You can still challenge deduction by filing suit against builder before consumer forum or RERA.  

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

Ans: Write letter to the builder to cancel the agreement and then wait for the reply from the builders end. 

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

you should have read the clauses before signing the agreement. Try to negotiate with him. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

  1. As per the information mentioned in the present query, makes it clear that you wish to o cancel the above mentioned transaction.
  2. I would like to apprise you that there are some loses to both the sides when cancelling for their own wish without having any fault of the other side.
  3. But, yes, the percentage of the same must be mentioned in the agreement of sale or any argument before the agreement to sale to be in the safer side in time of like present in your case.
  4. As it seems that there is no such agreement and in fact the agreement to sale is yet to be signed by you, you. can surely negotiate on the issue of 10 percent.

Sanjay Baniwal
Advocate, South Delhi
5473 Answers
13 Consultations

5.0 on 5.0

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