5 Things to know while cancelling an apartment booking

With the growing number of real estate projects, there has been an increase in the number of cancellation usually due to project delays. The reasons can be different like change of plans, project delays, not meeting expected quality, or even a financial crunch. In case if you are looking to cancel your apartment booking because of any legitimate reason like a prolonged delay, there are a few steps you need to follow to make sure you get the full refund of your booking amount. Here are five things you should know when cancelling your apartment booking.

Know your rights as per the builder agreement: The first thing you as a buyer must be aware of before considering cancellation of your apartment or any other property is the fundamental right as a buyer. Usually the sale agreement or the property allotment document contains a detailed clause pertaining to cancellation of the booking in the future.

If you want to cancel your booked property, all cancellations would need to follow the pre signed clause as per the agreement. Make sure to read the cancellation clause in the sale agreement to understand the amount the builder is liable to refund in case of a cancellation. Usually if the developer does not commence construction within one year of issuing of the allotment letter, the builder is liable to repay the booking amount with a simple interest of 6% per annum.

Cancellation possible on certain grounds of impossibility: If you did not sign any sale agreement or allotment agreement with the builder at the time of getting your allotment, there is still room for cancellation. Even in case there is no clause for termination or cancellation or you did not enter into any agreement with the builder, you are well within your right to cancel the sale on certain grounds of impossibility depending on the basic agreement between you and the builder.

In such a scenario, your grievance for cancellation should be a legitimate one, or else you may also face some legal implications of cancelling without any basis. Make sure to keep a copy of application form, allotment leer as well as the receipt for payments made to the builder to facilitate the cancellation process.

Seek legal help: Cancelling an apartment booking involves a number of legal formalities and it is better to get the help of a lawyer socializing in real estate deals. Even in case you may have everything in written from the builder and a genuine reason to opt for a cancellation, it is always a good idea to seek legal help before filling for any cancelation refunds request from the builder.

Getting a lawyer ion board can help you draft the cancellation letter and other communication with the builder without any legal loopholes that the builder may use to his advantage later.

Communicate with the builder in black and white: When opting for a cancellation f any apartment, there is no room for verbal communication or assurances. Irrespective of what the builder may assure you, make sure to get every communication in black and white.

Even if you are sending an email to the builder, it is recommended to get the mail drafted through your legal counsel. Such a communication I admissible in court and is useful in case of any dispute in refunding of the money by the builder.

Explore legal options by approaching a consumer court: If you are not happy with the money that the builder has paid you back on account for cancellation of your apartment, there is a case to approach the consumer protection court. You can take the payment from the builder under protest and file an application with your nearest consumer court seeking full refund from the builder. Make sure to have all documents in place before taking on the builder legally.