AP Infrahomes & Realtors

Cancellation Policy

The down trend in the real estate market has had many investors and buyers reconsidering their decisions to buy a property. Often it happens that people eagerly book an apartment but due to certain reasons, are unable to go ahead with the purchase. According to property consultants, while majority of the cancellation instances occur due to buyers reconsidering their financial circumstances, another common reason is unnecessary project delays.

How to cancel a booking ?

Most people are unaware about the procedure of cancelling a booking. This results in problems while claiming a refund. As there are no rules or conditions laid down by the government regarding cancellation or refund of the booking amount. It only how smooth your cancellation process goes basically depends on the rapport you have with the developer.

Important things to Remember :

Builder-buyer agreements including sale agreement or property allotment documents usually contain cancellation clauses. Go through the documents carefully in detail as cancellation will be subject to the terms mentioned in it.

Always save any type of acknowledgement document you had receive, especially in the lieu of a payment.

It is best to pay through cheques or other recordable mode rather than cash.

Any GST paid will not be refunded in case of a cancellation.

Keep all communications in writing. Verbal assurances and promises will not be hold in a court if a complaint has to be filled.

Cancellation Charges

It is common for the builders to deduct a cancellation charge, usually 10 per cent of the total cost , before refunding the booking amount. Apart from this charges, any government tax paid by the buyer such as stamp duty, GST will also be deducted from the refund amount. He adds that since there are no guidelines laid down by the government the deduction is done at the builder’s discretion and some builders might even wave it off in some cases.

Cancellation charges are usually mentioned in the builder-buyer agreement. So, if you have signed such a contract, read it carefully to find out how much money you are liable to be refunded. If terms for cancellation are missing then 100 per cent refund can be claimed from the developer. In case a developer refuses to repay the booking amount even with a clause present in the agreement, the buyer may file a case with the consumer forum asking for a refund with interest.

Seek legal counsel

It is best to seek legal counsel if you are planning to cancel an apartment booking to avoid any glitches later on. A legal expert will be able to help you out with the whole procedure and ensure that you get refunded what you deserve and nothing less. Cancelling an apartment booking involves several official formalities which a lay man might not be well-versed with. Just sending an email to the builder requesting a cancellation is not the best way to go about it.