What Happens If You Cancel a RERA Registered Flat Booking with Only Booking Amount Paid
If you want to cancel the booking of a flat registered under the Real Estate Regulation and Development Act (RERA) and have paid only the booking amount without completing the registration, there are several important points to consider. This article provides a detailed guide on what happens next, legal rights, and steps to take.
Cancellation Policy
The specific cancellation policy is outlined in your booking agreement. You should review this to understand the terms related to cancellations, including any penalties or fees that might apply.
Refund of Booking Amount
If you cancel before registration, you may be entitled to a refund of the booking amount, though this can vary based on the developer's policies. Some developers may retain a portion of the booking amount as a cancellation fee. It is crucial to understand these policies and ensure they are adhered to.
RERA Provisions
Under the RERA act, developers are required to be transparent about their policies. If the cancellation is initiated by the buyer, it’s important to ensure the developer adheres to the agreed terms. Should the developer breach these terms, you can file a complaint with the RERA authority.
Documentation
Keep all documentation related to the booking and cancellation. This includes the booking receipt, cancellation notice, and any correspondence with the developer. Documentation is crucial for any legal proceedings or disputes.
Legal Recourse
If there are disputes regarding the cancellation or refunds, you may seek legal recourse under the RERA act or through consumer courts depending on the situation. Consulting with a legal expert for clarity on your rights and obligations is highly recommended.
Understanding RERA Provisions
According to Section 13(1) of the RERA act, a promoter shall not accept an advance payment or application fee of more than 10% of the apartment cost without first entering into a written agreement for sale and registering it under the law. In the event of cancellation, the promotor may terminate the agreement, re-allocation of the property, and refund the booking amount.
The Sale Agreement typically includes a clause specifying that if the allottee fails to pay the booking amount or cancel the project, the promotor can cancel the agreement and re-allot the property to another party. In such a case, the allottee loses all rights and claims over the property. The promotor shall refund the booking amount within 45 days without interest, provided the allottee complies with necessary cancellation procedures and ensures proper registration.
RERA Protection for Consumers
As per Section 12 of the RERA act, if you are affected by an incorrect or false statement in the advertisement or prospectus, you have the right to withdraw from the proposed project and get a full refund with interest.
In the context of your sale agreement not being registered, you should discuss with the promoter and take necessary steps to retrieve your advance amount through the provided legal channels.
Regardless of the cancellation or refund process, maintaining documentation and understanding your rights is crucial. Consult with a legal expert if needed for clear guidance and to ensure compliance with RERA regulations.