Hello,
Send a legal notice to the said person for refund of the amount.
If he does not refund the same then you may go ahead and file recovery suit, since there is no agreement he can not forfeit any amount of money.
Regards
Advance paid for purchasing property but deal cancelled
Hello, I had paid 2.5% token amount of property deal via Cheque to a Pvt Ltd Company for a deal of residential property. No formal agreement has been entered but with verbal understanding. This was cancelled by me within 3 weeks due to some unavoidable circumstances beyond my control and I had informed the concerned party immediately. Now it has been 10 months since then and my amount has not been refunded inspite of multiple reminders. I am being told to forfeit 50% as cancellation penalty to which I do not agree since the amount is significant and I had cancelled within 3 weeks out of total payment schedule of 9-10 weeks. Pls suggest what legal remedies do I have in this case and what will be procedure / time length of it?
Asked 5 years ago in Civil Law
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15 Answers
First issue a legal notice demanding the return of booking amount by intimating your decision to cancel the booking.
If there's no proper response or if they don't comply with the demands made, you may file a suit for recovery of money.
1. On cancellation of sale agreement unilaterally by the purchaser the developer is entitled to deduct a sum of money.
2. However the said sum of money is only a token one to defray the Administrative expenses.
3. Therefore the demand of half of the booking amount is unjustified and hence to get back your money its recommended to file a case before the consumer forum.
They cannot forfeit the amount as it is illegal. Send them a legal notice and if they don't respond then file a recovery suit in the civil court.
You can send him legal notice and later file suit for specific performance
Issue legal notice to seller to refund your earnest money paid by you on cancellation of deal
2) there is no forfeiture clause so seller cannot forfeit your money
3) if he fails to pay file suit to recover your money with interest
Please issue legal notice to your purchaser and enumerate all facts for refund of your advance payment against purchase of property.
If not ready, Please warn him for legal action against him including steps to obtain temporary and permanent injunction against him and property that would block his way to sell the property to any third party without settling your advance amount of refund.
You can make a complaint in the Consumer Forum of your city and in the RERA against that company.
File recovery proceedings as the amount has been paid in white through cheque, don't say this was an advance against deal of the property as there is no written agreement , say has been taken by so n so on returnable basis for a year with interest.
File a 420IPC complaint against the company for expeditious money recovery
Dear Sir,
You are suggested to serve the legal notice to the said company for the demand of the said amount and if the amount is not returned, file the case in the district court for the recovery of the money.
- 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.
- However before filing the complaint , you can send a legal notice to the said company.
Dont attribute cancellation due to your reason. Impose cancellation due to builder and file FIR of cheating for fast recovery.
Else have to file recovery suit but in no case accept that you yourself have cancelled the deal but due to seller false offer.
Is there any receipt which shows that you had paid token money. If yes, then you can file a case for recovery of money suit . Contact a good lawyer with all relevant facts and documents.
1. You should send a legal notice for refund of advance paid to company for booking of property.
2. If they refuse refund even after legal notice or doesn't reply to legal notice then file suit before consumer forum against that company for refund of advance paid along with interest and compensation for harassment and agony suffered by you.
