What are terms and conditions mentioned in allotment letter
2) if you cancel booking builder can forfeit booking amount as per RERA
Booking amount refund
Hi, I have given 1 lakh booking amount a week back for a plot from a reputed builder and filled booking form. Amount given 1 lakh in UPI(Have receipt) cheque of 4 lakh(I didnt put cash yet in the account)-Not deducted yet Now i observed that there are high power tension lines going in the adjacent layout,and there is chance that my plots resale value will be lesser.Now I am thinking to cancel the booking,but builder is telling he wont refund. 1.What can I do? 2.I paid 1 lakh cash and 4 lakh cheque(which i didnt put cash yet).Will it cause any issue? 3.I didnt execute any agreement..(only filled booking form)
Asked 9 months ago in Property Law
Religion: Hindu
10 Answers
First cancel the booking and demand back amount, also stop cheques and ask bank not to encash cheques. Booking form is required to be looked into as the same too form an agreement. File consumer complaint case.
Hello,
Is the 4 lakh included in the booking amount. If yes, then upon bounce of the same the builder will file a case u/s 138 of the NI Act.
Convey that you want to cancel by a letter and ask the booking amount, if the brochure did not mention that the booking amount is non refundable
Regards
Hello,
- You need to issue a Legal Notice to the builder cancelling the proposed purchase and seek refund of the booking amount. You must state a more justifiable reason for cancellation of the booking.
- In the Notice you must also inform the builder about stop payment on the cheque/s and advise not to present the cheque/s. This you must do immediately as he can present the cheque/s and file a case for dishonor of cheque under Negotiable Instruments Act and it can trouble you.
- Even if you have not executed any agreement, Your filling out the booking form is sufficient to constitute an agreement of the sort as there would be some limiting clauses on it to the advantage of the builder. Please check the details on the booking form if you have a copy.
1. Does the booking form has a clause that the booking amount is non-refundable or some percentage of booking amount will be forfeited?. Based on the above, if there's no mention of forfeiting the booking amount, send a legal notice to the builder for recovering your one lakh.
2. Anyway the cheque for Rs. 4 Lakhs can't be encashed as sufficient money is not in the bank. Since you have not executed any agreement, when the cheque bounces, the builder can't initiate action against you for cheque bounce U/s. 138 of N.I. Act.
1. You can write a letter to the seller communicating your decision to cancel the booking and ask them to refund the booking amount, since there is no agreement in writing the builder may refund the amount by deducting the administrative charges if any.
2. You can mention in your notice that you have already given stop payment instructions to bank, hence to not to deposit the cheque given to them.
3. The booking by filling up the form itself do not indicate that it is a legally valid contract unlike the sale agreement entered between the buyer and the seller. The booking form is just an indication that you are willing to purchase the property and to confirm the berth, you have paid this as a token amount.
Besides, if the builder is getting the cheque bounced then also he canot file a cheque bounce case because this is not a legally liable debt, hence you may remain unworried about this aspect too.
Hence you are entitled to refund after deductions of some administrative costs, which you can demand either by sending a letter or a legal notice, depending on the circumstance prevailing at your end..
You need to prove the same id denied by other side. Consumer complaint is maintainable
- There is no provision in the law, 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 10% of the booking amount.
1. You can send a legal demand notice for getting refund of the paid amount after mentioning that you are cancelling the booking due to fault of the builder as higher power tension line is passing over the plot
2. No , if you wanted to cancel the booking , then stop payment of the cheques
3. If there is no agreement , then the builder is bound to refund the amount .
Havent you inspected the plot before payment ?
Issue stop payment direction to pay instead of insufficient fund.
Send legal notice for refund than approach RERA.
Dear Client,
Please initiate the cancellation of the booking and request a refund of the amount paid. Additionally, kindly put a stop on the issued cheques and inform the bank to refrain from encashing them. It's essential to review the booking form as it serves as the basis for the agreement. Furthermore, consider filing a consumer complaint case.
