How To Cancel Apartment Booking
Have you booked a flat but want to cancel the booking for some reason? The cancellation procedure before and signing the agreement is different, and need to be understood well as a buyer has all the rights to cancel the flat booking and claim the refund.
The cancellation clauses are invariably there in property allotment documents and Builder Buyer Agreement (BBA). Since cancellation of flat before agreement would be subject to the terms and conditions of the clauses being mentioned, it becomes necessary to do a thorough reading and analysis.
It is a good practice to save any acknowledgment receipts especially in cases of payments.
Rather than paying in cash, prefer to pay in cheque or any other recordable forms of payment. In the case of cancelling a flat booking, do note that GST won’t be refunded.
Also make sure that all the assurances are reflected in writing rather than believing in verbal promises and assurances which may not work in cases of formal complaints and court proceedings.
Factor in the point that even if no BBA was signed, a buyer has the right of cancellation of flat before agreement and can approach the real estate regulatory authority for the claim. The builder is also bound by the real estate law to return the money collected from buyers within 45 days, after deducting the booking amount. Also, if the real estate developer fails to give possession of the apartment or complete the project as per the stipulated time, the homebuyer can terminate the agreement and is entitled to refund of the amount paid with interest in 45 days of such termination. However, in a recent statement, Haryana RERA has said that buyers won't be refunded if the 40 per cent of the project is completed.
In case, there are no signed agreements or contracts, it is pertinent to have receipts of payments and allotment letters. These may also contain terms of cancellation of flat before agreement which may help claim refund.
Booking cancellations are not unusual and you have all the rights to proceed as per your will and preferences. Considering the market and personal situations, sometimes investors tend to reconsider their decision to buy a property. While majority of cancellations happen owing to financial crunch, unnecessary project delays is another major cause.
While triggering the process of apartment booking cancellation, it is best to seek legal counsel in time to straighten out the process. Just sending an informal message or mail to the builder requesting cancellation is not the best way to go about it.