I had booked an apartment property with a builder by paying an amount of Rs. 6.25 lacs which is 10% of the sale value. They would share documents only on payment of above amount. On checking the agreement to sale, they had not mentioned undivided share of land in the agreement to sale. I wanted the same to be included. Nearly one month went by in both sided trying to convince each other. They cited RERA, and that the same did not require to be mentioned. They also mentioned that the sale deed will have the mention of common areas being handed over to the society. I sent a mail of cancellation on the grounds that UDS is not a part of the agreement to sale. At the same time, my company reduced salary on account of the pandemic. Hampering my capacity to buy and repay the loan if taken. After my cancellation, immediately they agreed to make a new agreement to sale with UDS mentioned. I have refused to accept it and wanted them to refund full money, now due to the larger economic conditions. The booking form signed while paying the advance, has a clause of 10% of sale value as deduction, if the cancellation is done by the buyer. No method or reasons of cancellation have been mentioned in the booking form, due to which I am eligible for a full refund. I want full refund from this builder. Pls advise.
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
You would not get full refund
2) builder can deduct 10 per cent of booking amount ie Rs62500 and refund you balance
3) if builder fails to refund file complaint against builder before RERA or consumer forum and seek orders to direct builder to refund your money with interest
1. It is most naive on the part of buyers to pay money to the builder before even examining the documents of title and approvals. Nothing should be paid by the buyer to the builder unless the latter shares all the documents and the buyer satisfies himself that title of builder is free and marketable.
2. Reasons for cancellation are not to be mentioned in the booking form. It is not to be an encyclopaedia.
3. Now serve a lawyer's notice to the builder to demand a complete refund.
4. If refund is still not made after service of lawyer's notice then you can sue the builder in Consumer Forum for recovery of the advance with compensation for mental agony.
1. See you may serve builder a legal notice on ground that he has not provided completed documents and mentioned UDS in sale agreement therefore now you don't trust builder and want complete refund with interest.
2. In case builder fails to refund amount on notice file a suit before the consumer court seeking refund.
1. Under RERA, builder is legally entitled to deduct 10% if the buyer unilaterally decides to cancel his booking.
2. However above can be circumvented IF buyer party proves gross delay /monetary losses /improper or illegal construction /etc .... and full refund can be claimed by filing complaint before local RERA office.
3. Buyer party cannot claim UDS, since the same shall duly vest with an Association /Society that would be collectedly formed /registered by all Flat Owners or by Builder on completion of project.
Since you are cancelling the booking on your own, you may have to bear the the deduction that would be made by the builder.
No doubt he cannot deduct 10% of the sale consideration amount.
At the maximum he can deduct 10% of the booking amount.
You can get that quantum also reduced by filing a complaint with RERA.
However, you may note that you may not be able to get full refund.
Due to pandemic issues contractual agreement remains valid with reasonable extension of time schedules.
So you can not cancel the agreement on this issue.
Booking amount is always liable to be forfeited if cancellation is done due to no fault of other party.
However you may claim a refund for some part of the booking amount on the ground that the amount is excessively high thereby forfeiting the entire amount would cause the builder to gain unreasonably at your cost.
1. On cancellation of sale agreement unilaterally by the buyer the builder can deduct a token sum of money.
But in such circumstances the same would amount to forfeiture of whole booking amount or most of it.
So if the builder refuses to refund the money you have the option of seeking redress from consumer forum.
So act accordingly.
Serve him with a legal notice and later file a specific performance suit against him for refunding the full amount
You need to file a complaint with rera and seek refund in the above case. As a procedural matter if the reason of cancellation is from buyer then generally there is Forfeiture of booking amount. You need to demonstrate that the said fault is of builder
Hi, Ask for full refund of the amount, if they not agreed for the same, then you have to issue legal notice and file complaint in RERA or also consumer forum for refund of the amount.
Dear Querist
You should read the agreement before signing, now the law shall presume that you are capable to understand and then agreed the terms and conditions of the agreement, hence legal you should bear 10% of Sale Value as a deduction. Legally you cannot get the money refund, if the builder is agreed then it will be better to get the apartment as they are ready to execute another/fresh agreement with your terms as demanded UDS.
Dear Sir,
You are suggested to allege the builder for misleading and then ask for the refund.
As per RERA, builder is entitle to deduct 10% if booking cancelled without builder fault.
Builder is at fault as was reluctant to include UDS in ATS. And only after your initiation to cancel the deal, agree to include UDS by executing fresh ATS. But now you are suspicious about the conduct of builder as in the beginning only, issues have arise. And builder with suspicious conduct, you are not interested to execute fresh agreemetn with him and want refund.
Complain to RERA.
as per rera builder can forfeit the booking amount 10%.
if it is there is a genuine and strong reason for you to not go ahead with then you can claim full amount.
if builder doesnot agree then you will have to take the next legal course of action.you will have to approach the RERA or Consumer court..
1. You can claim full refund of your advance amount paid to developer on ground of unacceptable terms and conditions in agreement of sale.
2. If they refuse to refund the amount then send a legal notice for recovery and after that recovery suit should be filed.
A deduction cannot be arbitrarily charged when it is the builder's fault. File a case in RERA tribunal immediately.
