unless and until you sign the cancellation deed no refund cheque would be given to you
2) you can request builder to furnish demand draft for refund amount
3) it can be paid at time of signing of cencellation deed
Processing cancellation deed with builder
Hi, I had booked an under-construction flat in August '19 with a reputed construction company. However due to personal reasons, I have decided to cancel the "Agreement for sale". Builder is okay to proceed with the cancellation deed however: a) as per the agreement, they are sticking to 10% cancellation fee (although I have requested them to waive it off, giving genuine reasons) b) they are asking me to proceed with cancellation deed first which will have the refund cheque amount, date, payable to mentioned. Due to personal emergency, I have no other option but to agree for the cancellation fee however I feel it's a risk to proceed with cancellation deed without getting the refund cheque first. Hence I have requested the RM team to handover the cheque first and then I will proceed with signing the cancellation deed. Please advise whether this is the correct approach. Also can I file any case / complaint with RERA if the builder forces me for the cancellation deed first and then give me refund cheque? Many thanks in advance.
Asked 4 years ago in Property Law
Religion: Hindu
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5 Answers
the signing and registration of the cancellation deed and handover of refund cheque can be done simultaneously
no need to sign first
- 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.
- Further, you should not execute the cancellation deed before taking the refund , otherwise there is chances that they builder not pay the amount.
You may follow the legal procedures for cancelling the registered sale agreement.
You can ask the team to handover the cheque at the time of registration of the cancellation deed.
The builder cannot force you to sign the cancellation deed without showing you or giving a photocopy of the refund cheque, you may insist on it.
If you plan to approach legally on this issue, you may have to waste lot of time on it, hence you can take a wise decision at right time.
They will cut 10 percent if its your fault
