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VIJAY K. TEOTIA (ADVOCATE)     03 November 2016

Refund of advance paid

The buyer wants to cancel his booking of a flat wherein he has already paid 40% of the total cost of flat. The agreement has been executed. As per agreement the builder will deduct 10% of the entire cost of flat, whereas only 40% has been paid by the buyer. The project is under construction. what is the legal position as far as refund of advance and deduction thereof is concerned. my query is

1. Can builder deduct on the total cost of flat whereas only 40% has been paid by the buyer?

2. what remedy the buyer has to get his advance refund on cancellation?



Learning

 3 Replies

adv.bharat @ PUNE (Lawyer)     03 November 2016

Sir as per agreement terms condition builder can deduct it from paid amount and paid back remaing amount to you.

Will u give THANKS on my LCI profile for free advice?

VIJAY K. TEOTIA (ADVOCATE)     03 November 2016

my query is whether builder can deduct on the total cost of flat or only on the amount already paid?

SHARAD CHANDRA DANEJ (Asstt. Manager)     03 November 2016

As per agreement it is 10% of the cost of the flat and not the 10% of the amount so far deposited.

But even 10% of the cost of the flat will be a large chunk of amount. For example, if the cost of the flat is Rs. 1 crores then the building will deduct Rs. 10 lacs (i.e. 10% of the total cost of flat). This is highhandedness on the part of the buiding. I am sure there must be some govt. rule as to how much amount of penalty if the purchaser cancels the agreement to purchase the flat. I think this can be known the Municipal Corporation of that area.

 


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