• Flat booking cancellation refund as per new RERA law

I had paid a booking amount of Rs.10,00,000.00 in one of the projects in Faridabad - Haryana which is ready for possession. The total value of the flat is 1.2 crores. No builder agreement has been signed so far. 
Now I want to cancel my booking but the builder is saying that 10% of the total value of the flat will be deducted that means there will be no refund & the full booking amount of Rs.10.0 lakh paid by me will be forfeited.
Please guide me in this regard.
Asked 6 months ago in Property Law
Religion: Hindu

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19 Answers

Builder can deduct at most 10 per cent of booking amount ie Rs one lakh and has to refund balance amount 

 

2) if builder fails to refund file complaint against builder before RERA and seek orders to direct builder to refund your money with interest 

Ajay Sethi
Advocate, Mumbai
79719 Answers
4806 Consultations

5.0 on 5.0

Without agreement to sell, builder can accept upto 10% amount and if you will cancel booking without builder fault, builder is entitle to forfeit booking amount.

So cancellation should be due to fault of builder and also cite ground of force majeure- inability to fulfill agreemnt.

Yogendra Singh Rajawat
Advocate, Jaipur
21407 Answers
31 Consultations

4.4 on 5.0

1. IT is true that under RERA provisions, builder is entitled to deduct 10%  PROVIDED you yourself wish to cancel the booking.

2. However IF you can documentarily prove that you are cancelling the booking due to Builder's fault (lack of facilities, no OC, improper construction, etc.... ) THEN builder is not entitled to deduct 10%.  However for this you would have to file a complaint before the local RERA office.

Hemant Agarwal
Advocate, Mumbai
5487 Answers
25 Consultations

5.0 on 5.0

It is wise to seek legal advice before you act in the matter where it contains substantial value and you are not aware of its legal aspects .

Booking amount is always liable to forfeit if booking is cancelled for no fault of other party.

Now under RERA there is some restrictions . Builder can not take payment more 10 % of the total cost without written agreement to sale .

So under RERA you can not get any relief since the payment made for booking is less than ten percent .

However You can try a luck in RERA or civil court stating unfair gain going to  builder by forfeiting the entire booking amount .

 

Kallol Majumdar
Advocate, Kolkata
2784 Answers
4 Consultations

5.0 on 5.0

1. Those buyers who pay such humongous advance money to builders before entering into an agreement to sell commit blunders which then haunt them. Since there is no agreement to sell there is no contractual charter of mutual rights and liabilities, in the absence of which it is very very difficult to recover money from builder. I have written on many forums that nothing more than some token money running into 11k should be paid to the builder when the deal is finalised, whereas the remaining amount should be paid only at the time of agreement to sell. 

2. Now the only thing you may do is to first serve a lawyer's notice to the builder demanding the refund of money. If he refuses to refund (which he most certainly will) you can then file a suit for recovery of money in the competent civil court, but the legal process will be a long drawn process with an uncertain result. Remember, unless the cancellation of booking is necessitated due to any default committed by the builder, the builder will be entitled to debit cancellation charges. The question of reasonability of the cancellation charges is what the court may decide.

Ashish Davessar
Advocate, Jaipur
30006 Answers
867 Consultations

5.0 on 5.0

Hi, as per RERA provision if the allotte wants to cancel the unit without any default from the builder ,the booking amount stands forfeited...However,if we want refund we have to make a ground,which can show default of builder or any false promises from the builder ..

Hemant Chaudhary
Advocate, Gurgaon
4599 Answers
42 Consultations

4.9 on 5.0

There is no such rule to deduct 10%

Send him a legal notice and than file a complaint to the registrar cooperative Societies 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. If any booking or agreement is cancelled unilaterally by the buyer , the seller can deduct a sum to off set a notional damages or to meet administrative charge.

2. However the sum or  percentage can not exceed the booking amount and hence the 10%  of the total value of the flat for the purpose of calculation of deduction of money is unjustified .

3. So it is a fit case where you can file a case before the consumer forum  wherein you will get full refund along with interest and damages. 

Devajyoti Barman
Advocate, Kolkata
21787 Answers
318 Consultations

5.0 on 5.0

Dear querist, 

Referring an excerpts from the RERA Act, 2016 for your reference as:

“The allottee shall have the right to cancel/withdraw his allotment in the project as provided in the Act, provided that where the allottee proposes to cancel/withdraw from the project without any fault of the promoter, the promoter herein is entitled to forfeit the booking amount paid for the allotment. The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within 45 days of such cancellation,” says the Real Estate (Regulation & Development) Act, 2016.

This means if you leave the contract because of a personal emergency or to invest your money elsewhere, you stand to lose about 10 per cent of the property cost."

 

Therefore, to summ up,the reason you are canceling your booking is the main condition to withhold your 10% of the amount. Therefore, if the buyer is not releasing your booking amount a legal notice can be firs sent to the buyer in the nature of demand notice first and then consequently, a consumer complaint or a complaint at RERA can be filed. 

 

You can contact me for consultation or on linkedin, in case you need my assistance in the matter. 

https://www.linkedin.com/in/yuganshu-sharma-655091183/

 

Regards, 

Yuganshu Sharma
Advocate, New Delhi
386 Answers
1 Consultation

5.0 on 5.0

Dear Sir,

You have committed a grave error by having no agreement yet if your intention was for booking for flat. But, you may change your stand that the builder had taken the loan from you and now not returning. You may send the legal notice for return of the same and ask the full amount with interest.    

Ganesh Singh
Advocate, New Delhi
6542 Answers
13 Consultations

4.5 on 5.0

Hello,

  1. In the absence of any agreement between you and the builder about deduction of any amount from the booking amount, you can cancel the booking and get a full refund. Even otherwise, the RERA rules allow an exit from the deal for the buyer , if he wants to do so at any stage.
  2. If the builder is refusing to pay back, you can lodge a complaint with the RERA seeking the refund from the builder.

S J Mathew
Advocate, Mumbai
3083 Answers
112 Consultations

5.0 on 5.0

The builder cannot deduct 10%of the value of property. 

In fact he has not even entered into a sale agreement so far so he cannot dictate such terms. 

You communicate your decision to cancel the booking for the reasons you rely upon in writing by sending a legal notice by registered post and demand refund of your booking amount. 

If he's refusing to comply with the demand made,  you may drag him to consumer forum for relief and remedy. 

The  one sided conditions of any agreement is not valid in law as per latest supreme court judgment in this regard. 

Hence you can take proper legal action against the builder for relief through consumer forum. 

T Kalaiselvan
Advocate, Vellore
69750 Answers
951 Consultations

5.0 on 5.0

No, it is not that way.

Builder can deduct 10% on advance paid i.e., on Rs.10.00 lakhs and not on total value of flat, and he has to refund the balance 9 lakhs.

In case if the builder fails / refuses to refund balance amount, you can lodge complaint with RERA or file case before Consumer Forum seeking direction from Forum against Builder to refund the balance amount with interest and litigation charges.

 

S Srinivasa Prasad
Advocate, Hyderabad
2864 Answers
9 Consultations

5.0 on 5.0

As per RERA rules the builder may forfeit 10 percent of the amount if in case there is no condition of forfeit of amount is.signed you may file a complaint before RERA authority for refund of same.

Shubham Jhajharia
Advocate, Ahmedabad
25521 Answers
115 Consultations

5.0 on 5.0

Dear, I have read your query, you Don't have to worry I have dealt with similar kind of cases and a similar relief was granted to one of the homebuyer, where the home-buyer paid the booking amount and full amount was refunded by the promoter. So you Don't have to worry as your rights are very well protected and I just wanted to know that is the project of promoter registered with HRERA? RERA Act very well protects your rights so you don't have to worry. We have been actively dealing in RERA cases and we have whole specialised professionals. You can also personally contact us. 

 

You can follow up your query and please don't forget to give a rating as well as feedback to the asnwer as you would help me grow. 

 

Thanks and Regards!

Varun Talwar, Advocate Delhi High Court

Managing Partner at Talbros Legal LLP

Varun Talwar
Advocate, Sonipat
27 Answers

Not rated

- 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 till the time ; 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, after deducting the booking amount.

- Hence, if you have already paid 10 percent of the flat value , and the said agreement signed by you , 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  , and if the said agreement is registered , then builder has right to deduct booking amount from the paid amount. 

- Since, No builder agreement has been signed so far , hence the builder cannot deduct even a single penny , and liable to refund entire amount deposited by you ,on cancelling the deal. 

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

 

Good luck and dont forget to rating Positively. 

Mohammed Shahzad
Advocate, Delhi
5666 Answers
55 Consultations

5.0 on 5.0

As per the rera rules if flat is cancelled without a reason not of the fault of promoter then your booking amount will be Forfeited 

Prashant Nayak
Advocate, Mumbai
22633 Answers
49 Consultations

4.4 on 5.0

file complaint against builder before RERA and seek orders to direct builder to refund your money.

builder can deduct only 10 per cent of booking. 

Mohammed Mujeeb
Advocate, Hyderabad
18986 Answers
13 Consultations

4.5 on 5.0

1. Builder cannot deduct the amount if there is no agreement with builder but at the same time you must have documents to prove that you have make payments to him for booking of flat. 

2. You should send him a legal notice for cancellation of flat and refund of advance paid for booking. 

3. If he refuse to refund the amount file suit for recovery of money.

Mohit Kapoor
Advocate, Rohtak
10685 Answers
7 Consultations

5.0 on 5.0

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