Have you booked an apartment for sale and want to cancel it but don’t know the procedure? Then this article will help you with the rights as a buyer to cancel a booking and claim a refund.
Buying a home is a dream of every individual but there are some buyers and investors who reconsider their decision for one or the other reason. Its the case when people eagerly book a residential apartment for sale but eventually don’t want to continue with the purchase.
According to property consultants, while a majority of the cancellation instances occur due to buyers changed financial circumstances, another common reason is unnecessary project delays.
Process For Cancelling An Apartment Booking?
There is a majority of people who aren’t aware of the procedure of cancelling an apartment booking. And this ultimately leads to problems while claiming a refund for the cancelled property for sale. As there are no rules or conditions laid out by the government regarding cancellation of an apartment or refund of the booking amount. The cancellation process is dependent on the rapport the buyer and the developer hold.
Important Things To Remember
Whenever you buy a home, there is a builder-buyer agreement including a sale agreement or property allotment documents usually contain cancellation clauses. It is important to go through the documents in detail as a cancellation will be subject to the terms mentioned only. Missing out on any point could lead to serious circumstances.
Keep the acknowledgement document you receive safe, especially in lieu of payment. Also, it is best to pay through cheques or other recordable modes rather than cash to avoid any confusion. Any VAT or Service Tax paid will not be refunded in case of a cancellation.
Avoid having verbal communication and have it in writing as verbal assurances and promises will not hold in court if a complaint has to be filed.
If in case there is no builder-buyer agreement was signed, you are still entitled to cancelling a booking and claiming a refund for the purchased property. Experts warn that the reason for cancellation should be a genuine one or else you may get into legal trouble. In the absence of a signed contract or agreement, holding on to allotment letters and receipts of payment are very important.
Application forms, acknowledgement or allotment letters may also contain terms and conditions of a cancellation which can be used to claim a refund from the builder.
Cancellation Charge
It is a common practice for builders to deduct a cancellation charge, usually 10 per cent of the cost of the apartment for sale, before refunding the booking amount. Apart from this charge, any government tax paid by the buyer such as stamp duty, VAT or service tax will also be deducted from the refund.
Better to Seek Legal Counsel
It is best to seek legal counsel if you are planning to cancel an apartment booking to avoid any problems 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. All the formalities will be done on his part making it easier for the buyer.
Also See: How To Convert Gajam To Square Feet (Sq Ft)?
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