I and my friend have booked a flat in an under construction property, at the time of booking it was very clearly mentioned that the property will be registered in joint name and we will take a Home loan for the remaining amount, both of us transfered 5% each from our bank account to the builders account and completed the 10% booking amount from our end. The Sales Channel Partner assured that you will get the loan in joint name as your income is eligible for the required loan amount when clubbed together. Now the Bank person says that loan in joint name is not possible as their is no blood relationship between me and my friend. now we dont have any option but to cancel the booking due to false commitment of Builders sales team, hence we did not register the property documents and send an email for cancellation of booking, Since a year this booking amount is pending with the builder and we are incurring interest on the booking amount, the project is registered in RERA. What legal action can we take against the builder
Issue legal notice to builder to refund your booking amount with interest
2) mention that booking was done in joint names based on builder assurance that loan would be sanctioned
3) since bank has declined to give loan no option but to cancel booking but till date booking amount not refunded
4) of 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
- Yes, you can cancel the agreement for purchasing the said flat , and the builder is bound to refund the entire amount with 10% interest due to wrong promises of loan.
- Firstly you should send a demand notice after mentioning that due to the wrong information given by him you are cancelling the agreement, and thereby ask him to refund the entire amount paid by you with interest.
- If the builder fails to response your notice, and not refund the amount within a period of 7 days of time, then you should file a complaint with the Consumer Court under the Consumer Protection Act, against the builder for deficiency in service.
- You can also claim compensation for mental agony and harassment due to the fault of the builder. .
- As per law, the builder is bound to refund the entire amount with interest due his fault.
When I talked with the Builders Team in March 2021 for cancellation they said you will get a refund within 30-45 days. since then they are just giving excuses for payment and buying time every month that in this month you will get the refund. I have all the email conversation with me, many a times they don`t respond to email. They have taken 5% each from both the accounts but they have mentioned only my name in booking form, Earlier we both were planning to buy separate flats and given refundable token amount to builder, but due to over burden we decided to cancel and take token amount. But the sales team somehow convinced that instead of cancelling you both go for a 2BHK jointly we will shift your token to this 2BHK unit. So we agreed. When the agreement is not registered, can a Builder deduct any amount for cancellation of booking? Can a builder say that that this unit is booked only in one persons name and not jointly? The Builder has already sold the unit to someone else on higher rate, What all remedies do we have for getting refund without wasting much time and can we demand the Interest and appreciation amount or can we continue with the builder to give flat on the same agreed price?
If builder has agreed in writing that they will refund your money you are entitled to refund
if your name is only mentioned in booking form then you cannot take plea that loan is not sanctioned on joint names
it is necessary to peruse the agreement if any entered into with builder, correspondence entered into with builder to advice further
1. IF you have documentary evidences of the Builder's misdeeds /negligence /harassment /etc.... THEN you are entitled to refund of entire amount alongwith applicable Interest, by filing appropriate grievance petition either before RERA or Consumer Court.
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
I am not able to understand why the bank says that it cannot sanction loan in joint names just because the two persons are not blood relatives ?
What's the logic behind that ? Did you ask the bank ?
Why you didn't write to the builder to give the booking form in the joint names ?
However as the builder has already agreed to give you the refund and if he is dilly dallyying then you can approach Rera, moreso if the unit is already sold to some other buyer
You have to check the terms in the booking form as regards cancellation of the unit by the purchaser and the consequences of such cancellation. That will be binding on you in absence of a registered agreement
You can immediately file a complaint at consumer forum or rera immediately. You can pray for interim relief.
If you need any further assistance.you can approach me through Kaanoon or LinkedIn.
Have you communicated your decision to cancel the booking in writing to the builder and do you possess the acknowledgment for this communication.
If so, you may issue a legal demand notice to the builder demanding refund of your booking amount and may also demand interest over the booking amount since it was his fault to misguide you with false assurance of loan.
If the builder is not complying with the demands made, you may approach RERA or consumer forum for relief and other remedies.
You have been advised to resort to legal process to recover the amount that is due from the builder because the builder will adopt such dilatory tactics and avoid return of your booking amount.
He may drag on the issue endlessly until such time you resort to legal process against him
Hence you may better contact a local advocate and issue a legal demand notice first and then follow it through further legal process.
The builder is bound to refund the booking amount upon cancellation, notwithstanding the agreement being not registered. You have a legal recourse against the builder even in that case. Send a registered notice (with acknowledgement due) asking the builder to refund the money immediately. If there is no response, lodge a written complaint with the State RERA Authority for redress.
- 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.