Cancellation of booked flat
Hi, I booked a flat two months ago, during booking we had clearly communicated to the builder, we are opting for a Home loan, upon bank approval only we can proceed further, builder accepted and arranged for the home loan, signed the agreement sale deed – one copy, the original copy was shared to the bank along with all relevant documents, we donot have any of the documents shared with bank, but builder has sale deed agreement Xerox copy. Mean time the room size of the house was not as per the plan, builder agreed to change the room size, so we had modified the room as per the plan – only verbal communication given to builder, no written document or mail communication were shared.
This month – July 2015 - got home loan approval through phone from bank, but due to sudden family problem and lot of money spent on medical expenses which was reserved to buy the house, so this week I cancelled the booking. The builder asking us pay the damages to house – 2.5 lakhs + 2.5 lakhs for cancellation + interest ( 24% p.a ) of house value – 73 lakhs – total amount is around 8 lakhs.
We communicated to the builder we cannot pay 8 lakhs.
Builder is having Xerox copies of sale deed agreement given to bank and our hand written document of when we will disburse the money to builder. We donot have any document except unsigned sale deed document.
Please guide us – we have to pay money as per the agreement or only damages to the house or any other solution.
Asked 8 years ago in Property Law
Religion: Hindu
Thank you very much for giving the answer.
We have not done the registration - only booking was done & 1L token advance given
In the agreement - one of the clause is - In the event of failure on the allotee to pay the installment set out supra within the due date, the Builder shall be entitled to terminate this agreement and in such even the sums paid by the allotee shall be refunded without any interest deducting a sum of Rs 2.5 lakhs being the agreed and re-estimated liquidated damages to the builder.
Another clause - The allottee shall be liable to pay the builder interest at the rate of 24% p.a for the arrears of amount beyond the date as per the schedule of payment.
If we cancel the booking
what are the documents we have to get from builder and how to close, to prevent any problem in future.
Asked 8 years ago