APARTMENT FLAT OR VILLA CANCELLATION DEDUCTIONS AND PROCEDURES

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As per the general practice under the law, if any customer would like to cancel a flat that is liable to deduct 5 to 10% amount on total consideration value or booking amount as per the terms of the contract or agreement. Moreover, exemption of deduction amount towards cancellation flat charges is left to the builder discretionary power in the presence of contract.

However, in the absence of any clause in this regard, you need to verify the application form's terms and conditions which might have been printed in back side. Per contra, if the application's terms and conditions stating favorable to the builder and were totally arbitrary and constituted unfair trade practices and in the absence of agreement executed between the parties, no certainty in this transactions. In case if they didn't mention any clause in this deal that you can issue a legal notice to the builder by saying cancellation of flat and claim refund total amount. Later, the builder may deduct some amount as general practice. Later, you can accept the deduction amount under protest and claim the deducted amount before the Consumer Forum under deficiency in service and unfair trade practice as your legal right had not documented. As per the legal requirement, any money transaction towards service provide under real estate shall be follow minimum legal formalities example: Agreement, Receipts, undertaking letter, Flat booking details etc.,

Moreover, in the event of the builder has not issued receipt for payment made by the customer

that would attract cheating offence committed by the builder under Section 420 of IPC as paid amount was not documented. You can lodge police complaint with respect to the same for future correspondence. And you can highlight this point before the Consumer Forum under Unfair Trade Practice.

For more clarification contact legalravibt@gmail.com