• Cancellation of agreement to sale

I want to cancel the agreement of sale because in this agreement developer added some wrong clause s like act of Maharashtra ownership 1970 2a.He is not giving completion certificate.He is not giving Xerox of power of attorney.'Building is partially completed' is written in the occupancy certificate.construction is not completed till now.
He is not giving title form of property. We have already paid the total amount of flat to the builder.
So, can we cancel the agreement? Can our total amount get us return?
Asked 4 years ago in Property Law
Religion: Hindu

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19 Answers

1) you have partial  occupancy certificate issued by muncipal corporation 


2) since full payment has been made by you and partial OC is issued don’t cancel the agreement 


3) builder is bound to complete construction as per sanctioned plans 


4) in case of cancellation you would not get full refund 

Ajay Sethi
Advocate, Mumbai
95203 Answers
7607 Consultations

5.0 on 5.0

1. I wonder why you have wake up from your slumber when you have paid the full consideration. 

2. The conduct of the developer appears to be deficient in service or indulging in unfair trade practice. 

3. In such case you are entitled to full refund along with interest and damages. 

4. If you don't want this then file a case before the consumer forum. 

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

1. See wait for builder to complete the construction if he fails to get OC file complaint before RERA against the builder. If you initiate cancellation at this stage builder may deduct amount as per the agreement.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

1. If a clause which was unacceptable to you was incorporated in the ATS then why did you sign the ATS in the first place?

2. All the documents on the basis of which seller is claiming to have the competence to sell the property should be obtained from him by a prudent buyer before executing ATS.

3. Has the builder exhausted the time limit within which he promised to deliver the possession?

4. No default on the part of builder/developer can be gathered from your query. Hence, if you cancel the ATS now the builder/developer will be entitled to levy cancellation charges.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0


1) Yes. You can cancel the agreement of sale by issuing notice to the developer and

2) You are entitled to get FULL refund of monies from the builder 

3) You can highlight the following deficiencies/ latches on Developer's part of contract in your  legal notice : 

a) Not providing link deeds to title for title verification despite receipt of full monies

b) Non issue of Occupancy certificate by municipal authorities.

c) Pending construction activities. 

4) In case , the builder is registered with RERA , you can choose to file a case against the builder under RERA Act.

5) The other options are 

a) Filing a case under specific relief act and obtaining favourable orders or 

b) Filing a case under consumer protection act.

6) Law mandates that a home  buyer is eligible to claim the following from the builder:

a) Full refund of monies paid. 

b) Interest at 5% points above Marginal Cost of Funds based Lending Rate of a Nationalised bank

c) Compensation for sufferance.


Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

If you want to cancel the agreement than Builder may deduct 10% from total amount it. kindly check with him that ou much he is going to repay you back.

Ganesh Kadam
Advocate, Pune
12940 Answers
256 Consultations

4.9 on 5.0

1. If the agreement of sale is a registered one, then if you want to cancel the same, both the seller and the buyer have to execute a registered Cancellation Deed.

2. As per your narration, there has been breach of contract in what was agreed to by the Developer and what is prevailing. Hence you can demand for refund of your amount from the Developer.

Shashidhar S. Sastry
Advocate, Bangalore
5182 Answers
316 Consultations

5.0 on 5.0

- If the agreement is dully registered from the office of registrar , then you cannot cancel the same without getting court order.

- However, you can rectified the agreement , after executing a Rectification deed with the consent of builder. 

- If the developer refused , then the mentioned acts of developer are amounts to deficiency of services.

- You can file a complaint before Consumer court on the ground of deficiency of services , and also to claim compensation as well. 

Mohammed Shahzad
Advocate, Delhi
13529 Answers
201 Consultations

5.0 on 5.0

Yes if builder is doing aforementioned illegal acts then you can send him notice and cancel the agreement you will get your amount back

Prashant Nayak
Advocate, Mumbai
32148 Answers
185 Consultations

4.1 on 5.0

Dear Sir, 

Showing the fault on the builder, sent the notice to the builder and ask for the refund with interest and compensation also. If he does not return, file the case in RERA.  

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

You have agree to clauses mention in ATS by executing it. Now you cannot question the validity of ATS. You can cancel booking for other reasons like not providing CC, delay in construction process, failure to execute sale deed after making complete payment.

 wrong clause s like act of Maharashtra ownership 1970 is not binding. You can avoid it.

And as per RERA, allottee shall have the right to cancel/withdraw his allotment in the project subject to 10% forfeiture of total amount. 

Since cancellation is due to builder fault, you are entitle to full refund with interest.

Yogendra Singh Rajawat
Advocate, Jaipur
22714 Answers
31 Consultations

4.4 on 5.0

You should file a suit for cancellation of agreement to sell in the district court.

Moreover file a complaint in the RERA tribunal in case you want to raise such concerns and don't want to cancel.

Rahul Mishra
Advocate, Lucknow
14091 Answers
65 Consultations

5.0 on 5.0

Yes, definitely you have every right to challenge illegal, unfair  and unethical amendment and insertions of clauses in the agreement which is a good ground to cancel the agreement for the sale and claim back you payment with cost and interest. 

Please approach for the REDRESSAL of your grievances before MAHA RERA for default and deceit done  by the developer of the property wherein you have booked a flat under agreement for sale.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

Mention all these facts and serve him a cancellation notice.

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

It is the duty of the builder to provide the complete set of documents to confirm the title and his authority to sell the property.

He is supposed to provide CC and OC in respect of the property now he intends to handover.

You can very well make a complaint against this in case he is refusing to refund the entire booking amount with interest against the cancellation of the sale agreement.

Additionally you can approach even consumer forum for relief and remedy

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

generally, builders deduct 10 percent of the token amount in case the buyer cancels the agreement.

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

When you paid total sale consideration and obtained partial completion certificate, it is not advisable to go for cancellation.

Further, if you go for cancellation, you will not  get full amount, and that, it may lead to litigation, which is again not advisable.

Demand him in writing to complete the construction, going forward it will help you.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

A. First, you can cancel the sale agreement at any stage before execution of Sale Deed. However you need to check the agreement's terms and conditions for the purpose of penalty or forfeiture of cancellation.

B. Secondly, the seller or builder shall provide the required title documents in terms of Transfer of Property Act and other necessary documents. In the event of the builder fail to do so, you are entitled to get back full paid consideration with interest from the builder without deduction.

C. As the Builder is unable to provide documents as sought by you that you can issue a notice towards cancellation of sale agreement with seeking refund of entire amount along with interest. If the builder is being reckless, you can approach either RERA or Consumer Forum for remedy.


B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

1. Yes you can cancel the agreement but it can be difficult to get complete refund of the amount paid because of deduction clause in case of cancellation of agreement.

2. For complete refund you need to prove that builder have added the clause without your consent and you havent signed that agreement.


Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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