• Flat cancellation

Hi There, 

I want to cancel a flat that I was supposed to be take possession, however I have the sale agreement with my builder and now I have paid 10% of the total amount. 
When I approached the builder for cancellation, it was informed to me that the entire 10% of the amount will be forfeited, kindly suggest a way or let me know if there are any provisions in the law that can help me at this juncture.

Asked 3 years ago in Property Law
Religion: Hindu

3 answers received in 10 minutes.

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17 Answers

No, not all 10%will get forfeited only the advance amount paid for that amount is called earnest money and 10% of earnest money will get forfeited. As per the RERA Act.

Ganesh Kadam
Advocate, Pune
12894 Answers
250 Consultations

4.9 on 5.0

It has been well settled in law that even if there is a clause in that regard the entire booking amount or earnest money can be forfeited. 

So send the builder through your advocate a cancellation letter seeking full refund.  On refusal file a case before consumer forum to get full refund with interest and damages. 

Devajyoti Barman
Advocate, Kolkata
22532 Answers
464 Consultations

5.0 on 5.0

- 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.

Mohammed Shahzad
Advocate, Delhi
12521 Answers
171 Consultations

5.0 on 5.0

As per RERA in case of cancellation of booking the booking amount would be forfeited 

Ajay Sethi
Advocate, Mumbai
93499 Answers
7251 Consultations

5.0 on 5.0

Dear Client,

You may file a complaint in the c District Consumer Disputes Redressal Commission instead of RERA.

Jaswant Singh
Advocate, Gurugram
929 Answers
2 Consultations

4.8 on 5.0

You first communicate your decision to cancel the booking in writing and send the communication by registered post. 

If the builder is sticking to his point in his reply then you drag him to RERA or consumer forum for relief and justice. 

He can deduct maximum 10%of booking amount if the cancellation is due to your reason. 


T Kalaiselvan
Advocate, Vellore
83696 Answers
2056 Consultations

5.0 on 5.0

Please issue legal notice to Builder for cancellation of sale of flat property on the grounds that flat is not valid as per the agreement and registered with RERA therefore cancellation and return the booking amount 10 % of the flat amount with interest which was deposited with the Builder at the time of signing of the agreement. 

Put the disputes and pressurise the Builder for refund of your deposit amount on the grounds of violations of RERA regulations. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

1. Under a very recent RERA judgment, the Flat purchaser is legally entitled to revoke /rescind /cancel his booking and receive full refund of the advance paid to builder, without any exceptions, whatsoever....

2. File a grievance complaint with the local RERA office for your claims, supported with all relevant documentary evidences.  

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Dear Sir,

If it is more than 1 lakh then you can fight because legal expenses will be very heavy. You have to get issue a legal notice and then approach Consumer Court seeking refund of 10% along with Rs. 2,00,000/- towards mental torture.

Kishan Dutt Kalaskar
Advocate, Bangalore
6133 Answers
472 Consultations

4.8 on 5.0

As per RERA, if buyer cancels the booking without builder fault, builder can forfeit 10% of total amount. So, to recover full amount, find fault in builder.

Yogendra Singh Rajawat
Advocate, Jaipur
22461 Answers
31 Consultations

4.4 on 5.0

As per rera rules if cancellation is done by fault of buyer then the booking amount is forfeited

Prashant Nayak
Advocate, Mumbai
31071 Answers
162 Consultations

4.1 on 5.0

When you booked the flat??

If the booking is more than 90 days old than whole amount will be forfeited. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

1. Builder can forfiet cancellation charges as per booking agreement.

2. If you haven't signed any such agreement then you can claim full refund on ground that no agreement was provided by builder at time of booking the flat. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

If there are valid reasons for cancellation then you can cancel the booking. The amount cannot be forfeited as it is unreasonable.

File a complaint against the builder in the consumer forum immediately for unfair trade practices and deficiency in services.

Rahul Mishra
Advocate, Lucknow
14054 Answers
65 Consultations

5.0 on 5.0

Firstly, The advice which has to be rendered has to be done subject to looking at the copy of the booking application and other relevant documentation. 

Mohammed Mujeeb
Advocate, Hyderabad
19298 Answers
32 Consultations

4.7 on 5.0

In case if the Sale Agreement is silent  about the cancellation and its effect and no forfeiture clause is reflected in the said agreement, he cannot retain entire 10% amount.

However, he can without around 5% of the amount paid by your as cancellation charges and return balance.

In case if he does not refund, issue notice cancelling the sale agreement and refund of advance paid by you.

If  he  does not respond, file suit for recovery of money against the builder. 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

That is exhorbitant. Laws says that a builder can only forfeit initial money/booking amount paid at the time of booking a flat; and the builder has to refund the rest of the amount, if the buyer decides not to take possession of a flat/cancels a booking.


Vibhanshu Srivastava
Advocate, Lucknow
9534 Answers
299 Consultations

5.0 on 5.0

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