He trying to defraud you of the money. File a complaint against him in the RERA TRIBUNAL.
Cancellation of flat booking - Bangalore
Hi, I have booked a flat from prestige group and paid as 10% of Sales value as agreement. I did not sign the buyer builder agreement yet though builder sent it after franking it.Due to covid 19 situation I have to reconsider my decision and would not like to proceed ahead. As per the allotment letter in the event of cancellation 2% of the sale value will bd deducted and rest will be refunded. When I asked about the same to my builder they mentioned that as the agreement is franked so the cancellation clause of the agreement will be applicable. But my question is if I didn't sign it then how the clauses in agreement could be applicable.Also I did not ask the builder to Frank it ...if the builder does it by itself why it should be imposed on me.Kindly advice what I should do and legally whether the builder logic is correct.
Asked 4 years ago in Property Law
Religion: Hindu
42 Answers
Also I am ready to share my current documents for verification.
Asked 4 years ago
The complaint must be filed immediately. An agreement cannot be enforced unless the parties have signed it. You gave the money in good faith and that cannot be held against you.
As per the allotment letter the said charge will be applicable. Ideally only booking amount is deducted. In your case 2 percent will be deducted. You can approach rera or consumer court
Terms of agreement would not be applicable if you have not signed it
2) builder can deduct at most 10 per cent of booking amount paid by you
3) if he fails to refund file complaint against builder before RERA and seek refund of money paid by you
Builder contention is not correct as you have not signed any agreement
1. If the agreement is not signed then it has not come in operation.
2. The builder cannot deduct cancellation charges.
3. Serve a notice for cancellation and seek refund of the advance paid by you.
4. You will have to go to court against the builder to seek refund with interest if he does not refund.
Deductions are legal, still can be objected in your case in the consumer court.
Serve him with a legal notice first
1. The cancellation clause in agreement shall not be applicable as it is not signed by both parties therefore he can deduct amount only as per booking form. Issue legal notice of builder is not refunding amount. If on notice they fail file a complaint before RERA authority.
Sir ask them to refund amount vide notice.
After going through the facts and content of your case I would suggest you to ask refund of your advance from the Builder under section 18 of RERA.
If you claim that you haven't signed the agreement which has been fran without your consent and approval then it is considered and construed that the agreement is void at your option and not enforceable before the competent authorities.
Hence Please claim your balance amount from Builder under section 18 of RERA based on the allotment letter of Builder issued to you at the time of initial payment of 10% of sale value of the property.
All the best.
Best regards.
1. All Property deals /bookings are governed by RERAct even if it is not signed.
2. Builder is entitled to deduct (as per RERA) 10% of the deal value, IF the Buyer party cancels the deal without giving reasons.
3. However if the Builder is at fault (delay, improper construction.... ) THEN buyer party is entitled to full refund.
The franking of the sale agreement is part of the further action in this regard, moreover the builder has sent you the franked copy of the agreement for your signatures, whereas you have intentionally delayed signing the same quoting some unacceptable reasons and now you have come with your proposal to cancel the agreement or booking.
Thus the builder may conveniently mention that the agreement has already been entered into.
The builder will not ask your permission to the do things lawfully as per law hence he need not obtain your permission or any buyer's permission to carryout the necessary formalities that are to be carried out in a routine manner.
Hence you cannot claim any excuse on that aspect neither your case in a consumer court on this basis will be maintainable .
If you want to cancel ther booking, you may first communicate your decision in writing to the builder about the decision to cancel the booking for the reasons you may rely upon and send the communication by registered post.
You may enclose the unsigned agreement also along with your letter communicating your decision to cancel the booking and seek refund.
Let the builder give a reply to your cancellation application, if you are aggrieved over the decision taken by the builder in terms of refund of your booking amount, you may drag him to RERA or consumer forum for releif and remedy.
You are ready to share your documents but with whom, if you want any opinion on your documents then you engage the services of an advocate either from this forum or in the local and proceed on the basis of the suggestions rendered subsequently.
- 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.
- 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.
- Since, the said agreement is not signed by you and not registered from the office of Registrar , then the builder cannot deduct any amount.
- Hence, you can lodge your complaint before RERA or Consumer court as well.
Hi, I would like to clarify a few things at first. The agreement was delayed due to multiple reasons and its not intentional. To verify the property documents I have asked a set of documents based on my advocate's suggestion and builder took more than more than a month to provide a few documents though they have provided majority of the documents clearly. Till now I have the following response for the pending documents - 1. Panchayat NOC for water is a must – this has already been discussed with department concerned for issuance of relevant documents same shall be done soon. 2. A commencement certificate - Will be applied for. The commecement certificate is required to start construction activities post foundation work. and the past reply. – Commencement certificate will be provided to you once we have received the same. As per my below email, the same will be applied for at the appropriate time and will be shared with you. 3. E-Khatha must be there in the present or previous owner's name. – Please note that this is a KIABD land and same is allotted by KIADB on a lease cum sale basis. So as per builder that these documents will be provided based on the application of these documents. The property is situated at Prestige Finsbury Park, Sy No 45/1, Bagalur Road, Gummanahalli, Mahadeva Kodigehalli, Bengaluru, Karnataka 562110. It's not mentioned anywhere in the agreement letter. Then lockdown started and because of this, the process becomes slow. So I am sure whether I would be held responsible for the delay. In absence of agreement , which document will govern the cancelation clause? If there is a different cancellation clause in booking form vs allotment letter which will take the precedence? Initially, I thought that there is an option to upload documents but I don't find it here.
Asked 4 years ago
You cna opt for feature review of legal documents
make payment online
3)if project is registered with RERA then on cancellation of booking builder cannot deduct more than 10 per cent of booking amount
You can mention in your communication that all the documents which you have sought from them on the advise of your lawyer have not been provided by them till date.
Hence in the absence of the cited vital documents it was not advised to proceed with the agreement.
Therefore you have decided to cancel the booking and demand the refund of the booking amount.
If the builder is not responding or fail to comply with the demands made, yo may resort to legal action either through RERA or through consumer forum.
For getting an opinion on the basis of document held in your possession, you m ay have to engage the services of an advocate of this forum, separately.
Please file Suit for declaration of title and injunction based on your letter of allotment and 10% advance payment against full sale value of your flat.
You have to file suit for specific performance against the Builder depending upon amount involved in the matter.The jurisdiction of Court is declared and decided on the basis of pecuniary value of your suit.Hence File suit for specific performance of Agreement against the Builder based on 10 % amount receipt of payment made and allotment letter issued by the Builder.
Hi, as per RERA provision in case an allotte intend to cancel the agreement without any default of the builder ,the booking amount shall be forfeited..If you intend to seek refund ,send a legal notice and make some ground to show the default of the developer
1. In absence of the agreement booking form or allotment letter conditions will govern.
2. The documents needs to be perused to see condition and date of singing.
Your allotment letter will have legal value. But generally as owe rera also only booking amt can be Forfeited
Yes cancellation clause will be applicable
Hi, Thanks, everyone for sharing opinions and legal advice. I am confused with a few comments - 1. In which all scenarios RERA could forfeit the booking amount in the absence of a signed agreement? 2. To apply the cancellation clause which of the following documents/law will be considered? -Agreement(it is not signed) -Allotment letter(It's available) -Booking form (It's available) - RERA Law 3. Is there any way/chance for the builder in this case to forfeit the entire booking amount(10% of SV)? If yes what are all these ways for a builder? 4. If I pursue the legal path generally how long the refund or process could be delayed? Will the case be running over a year or forever? 5. Is there any chance of winning the case against the builder in this scenario? How strong is that? Can anyone please summarise the answer against these 5 points and reply? One more thing, I have paid the booking amount only so if the booking amount is going to be forfeited then there is no point in filing a case based on my understanding?
Asked 4 years ago
Booking form and allotment letter would be considered
2) builder cannot forfeit entire booking amount
3) cases before RERA should be disposed of in a year
4) you should win case against builder
1. RERA cannot forfeit the booking amount, if the builder and project is RERA registered then you can very well approach RERA for relief.
RERA may pass instructions to the builder to refund the booking amount after deducting upto 5% of the booking amount if the buyer is voluntarily cancelling the booking.
2. Since the agreement is not signed by you but n agreement has already been made by the builder, you may communicate your decision to withdraw your desire to buy this property and you may request the buyer to cancel the agreement for sale if he has already prepare one and demand the return of the booking amount.
You make sure that you send the notice for cancelling the agreement by registered post, if possible you may send it through your advocate.
3. The builder may intimate you that the entire booking amount has been forfeited based on his own one sided conditions, you don't accept his dictates.
You can approach consumer forum or RERA seeking relief of return of your booking amount
4. The time taken for disposal of civil case or the consumer case cannot be predicted owing to various factors involved in the litigation.
It may take more than two years also in the given situation.
5. Why are you having this type of negative feelings even before you start a legal process.
The builder is also bound to obey the orders of the court.
If you want to fight the case strongly then you engage the services of a prudent and skilled lawyer who can fight your case properly
You have very good case before Consumer Forum.
Please approach and appoint an expert Advocate whose practice before Consumer Forum is a day to day routine practice who can move on your behalf for return of deposit amount from Builder on the ground of lack of proper service and negligent in obtaining necessary approval from all competent authorities for the completion of the project under the relevant provisions of law.
You should try atleast
Generally, to be valid and enforceable, agreent must be signed by all parties.
You may file a consumer case against the Builder to seek refunds as per the Agreement.
Yes you can win the case it has merits supporting you.
1. The agreement clause will not be applicable on you till you give formal acceptance to builder.
2. You can ask builder for complete refund of advance paid on ground of unacceptable terms and conditions of agreement and demand cancellation of booking.
3. In case you have signed booking form so builder can forfiet the advance money as mentioned in booking form.
Dear Sir,
You may to lodge complaint with following authority
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Dear Sir,
The following information is exhaustive in nature
How To Register a Complaint Against Housing Society/Any other Trust/ Professionals as defined below.
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https://www.icrpc.org/icrpc.org.contact.htm
International Consumer Rights Protection Council
Consumer Court entertains consumer complaints against defective product or service. Bima Lokpal, Lok Ayukt, Lok Adalat are also places where complaints can be filed.
If you want to file complaint against builder, insurance company, housing society, bank, educational institute, hospital, doctor, railways, municipality, airlines, transport, school, college, manufacturer, dealer, etc. you can file your complaint here on this website. The process is very simple.
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Living in a housing society is akin to being in a committed relationship, except it gets murkier when things go awry as they sometimes do. We’ve all been in catch 22 situations where if a problem persists, we are damned if we try to solve it and damned if we don’t. After all, it is better to resolve a conflict or dispute peacefully in a way that is acceptable to both parties. If however, the society has been functioning to the detriment of its members, causing unbearable inconvenience, they have the power to right the wrong. Luckily, there are laws that guard you against real and present danger (and even inconvenience) posed to you by incompetent, ruthless or negligent committee members. This post covers the different problems that may arise for members in a housing society and various ways for redressal.
Complaints that can be raised in General Body Meeting:
- Issues related to maintenance of the property
- Not displaying society’s name board
- Not allowing members access to common spaces
- Charging excessive fines, maintenance, other dues
- Failure to insure the property
How to submit a complaint to the Managing Committee?
The member should submit a written complaint explaining the dispute/complaint in full detail to any office-bearer of the society.
In the next committee (after the complaint is received), the Managing Committee reviews the complaint, takes a decision and communicates it to the member within 15 days.
If the members do not receive any communication from the Committee within 15 days, they can approach any competent authorities for redressal of their complaints. A copy of the original complaint letter should also be attached to the escalation complaint.
In cases that are not so cut and dried and require extensive study of legal loopholes and workarounds, members should think about hiring an experienced lawyer (preferably specialising in real estate laws) who can bear the load and present a winning case. As such, housing societies have their own legal advisor/consultant or lawyer who does a good enough job of defending it if trouble befalls. Members who want to present a solid case with all legal intricacies and technicalities covered in a complex situation, should be better off with legal counsel.
Below is a classification of complaints and the competent authority for members to approach.
Administrative and financial mismanagement complaints and disputes that fall under the purview of the Registrar:-
- Non-issuance of share certificates
- Refusal of membership
- Exorbitant premium demand
- Refusal to produce account books and registers for inspection/ tampering or destruction of records
- Incomplete or falsified maintenance records
- Failure to prepare audit reports/ audit rectification reports/ annual reports
- Corruption and misappropriation of funds
- Investing funds without prior approval of members
- Inappropriate/false non-occupancy charges
- Failure to conduct election on time
- Appointing defaulting members on committee
- Rejection of nomination
- Failure to conduct annual, special or general body meetings wilfully
- Failure to file returns, statements or mismanagement of bank records/documents
Disputes pertaining to repair, construction and amenities should be appealed to Co-operative Court/Municipal Corporation or Local Authority:-
- Major and minor repairs, leakages
- Parking issues, disputes with allotment of residence
- Managing Committee resolutions
- Disputes with election of managing committee (except nomination refusal)
- High construction cost, disputes with appointment of architect or redeveloper
- Water supply issues and high maintenance/recovery
If you are facing harassment from the committee members, including but not limited to rude/impolite behavior on a consistent basis, verbal or physical threats or assaults, you must immediately approach the local police station and file an FIR. After receiving a police NC (non-cognizable), you can approach the Civil Court for further redressal.
Complaint against Co-op Housing Society
To file a consumer complaint against a co-operative housing society send your complaint to the registrar of co-op housing society:
Registrar
Co-operative Housing Societies Federation Ltd.
Address of the office where your society is registered
City name
Complaint to Registrar is to be made on the matters of:
1) Registration of society on misrepresentation
2) Non occupancy charges
3) Non supply of copies of record and documents
4) Non maintenance or incomplete maintenance of records and books
5) Misappropriation of funds
6) Investment of funds without prior permission
7) Audit
8) Non conducting of election before expiry of the term of committee
9) Non calling of General Body Meeting
10) Resignation of committee
Complaint in Co-operative court is to be made on the matters of:
1) Repairs, internal repairs, leakages.
2) Parking
3) Escalation of construction cost
4) Unequal water supply
5) Excess recovery of dues from members
Complaint to Police is to be made on the matters of:
1) Nuisance carried out by unauthorized use of flat / shop / parking space / open space by member or builder.
2) Threatening / assault by or to the member of society
3) Creating noise after prescribed deadline hour in the evening
Complaint to General Body is to be made on the matters of:
1) Non maintenance of property by managing committee
2) Levy of excess fine
3) Not allowing authenticated use of the available open space of the society by managing committee
Please Note: If your grievance is not redressed, you can contact the Commissioner of the Co-operative Housing Societies Federation Ltd,. located in your State.
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1. If default of buyer is their in that case amount may be forfeited.
2. Allotment letter and booking form shall be considered.
3. You may contest agreement is not signed and as per terms of booking only 2 percent may deducted.
4. RERA proceedings are comparatively fast and same will take less time.
5. Since agreement is not signed you may contest before the RERA / consumer court.
1. Cancellation charges can be charged if there is a clause to this effect in the allotment letter even if there is no agreement.
2. It is most unwise to pay any penny to the builder unless all the permissions/approvals required to be obtained have been obtained, but the builders have been pampered by the naivety of consumers in this country.
3. If there is no time limit mentioned in the allotment letter or agreement within which the builder must obtain all the required approvals then you have no cause of action in the first place to sue the builder unless the delay is inordinate.
4. The lockdown period has to be deducted while computing the delay on the part of the builder as lockdown is a Force Majeure.
Hi, So when I am going to send the email to the builder about my decision should I mention the reason as documents which builder could not share with me and based on Builder's reply they will share it once they receive it or I should mention about my job security? Also, in the allotment letter, there was no mention about any timeline when they are going to get all approvals. Kindly suggest.
Asked 4 years ago
Mention that you want to cancel booking on account of financial constraints
Yes you can give those references
Yes Please, you can mention both that incomplete process of project by Builder is reason to cancel the booking.
I would advice you to e-mail Builder about your decision to cancel the flat booking
1- Because of defects and default in projects
2- Because of delays in compliance of necessary action and approval from authorities compelled you to cancel the booking of the flat
3- No need to mention about your job. .
1. Mention the reason as documents in the letter.
Always remember that you create evidence for all the actions that you take.
Sending your decision by email may not be very effective.
Instead you can send the communication in writing and send it by registered post so that the builder will realise the importance of it.
You can throw the blames on the builder for not providing the proper documents to confirm the title or other vital issues involved in this.
You don't have to mention nothing. Only on the clause of allotment letter which you will highlight you will get the refund
no need to mention any reason just ask him to cancel booking
1. If you mention about job security then it is suggestive of your failure to fulfill your contractual obligations.
2. Since there is no mention about the duration within which approvals are to be obtained you may serve a lawyer's notice to him to demand that he should obtain all necessary approvals at the earliest. Presently there is no cause of action in your favour against the builder to sue him.
If there are discrepancies then it cannot be said that they are acting in a bonafide manner. There is something wrong about it. In case of a conflict like this it would be your convenience the court will see.
It will take around a year for everything to get resolved. No forfeiture will occur as he is at fault not you.
File a complaint in the RERA tribunal.
You should mention all your grievances and specifically state that you are not liable to pay anything and you want compensation.