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Cheating and harassment by builder What action can I take
30-Jul-2023 (In Consumer Court Law)
Hello sir, I booked flat in panvel in 2013, the builder promised me to give possession in 2015 to 16. I signed allotment letter there possession date was not mentioned. After several months builder issue another allotment letter in this letter he changed the payment schedule . But I didn't agree to this i didn't sign to. I said I want to transfer or cancel this flat but he said if you cancel u have to pay 5% penalty. You cannot transfer . If you cancel also we will give your money back after new buyer if he purchase the flat. I paid him around 40% of total cost. What should I do?
1. This is yet another case of no due diligence being carried out by the prospective buyer at the time of booking the flat.
2. Had an agreement been executed between you and him it would have clearly delineated the rights and liabilities which would have accrued in the event that either of you could not fulfill his promise.
3. Application form cannot be equated with an agreement.
4. Since the agreement has not been executed the builder can deduct a reasonable amount towards cancellation charges. What is a 'reasonable amount' is a matter of debate and even court may uphold his claim to deduct 5% of earnest money. This is why I always stress on flawless documentation of legal rights at the time of purchasing the property, more so form private builders.
5. Coming to the legal recourse available to you, you may send a lawyer's notice through your lawyer to the builder asking him to refund the entire amount. If he does not respond to the notice then move to consumer court and seek refund of the amount with interest.
2. Had an agreement been executed between you and him it would have clearly delineated the rights and liabilities which would have accrued in the event that either of you could not fulfill his promise.
3. Application form cannot be equated with an agreement.
4. Since the agreement has not been executed the builder can deduct a reasonable amount towards cancellation charges. What is a 'reasonable amount' is a matter of debate and even court may uphold his claim to deduct 5% of earnest money. This is why I always stress on flawless documentation of legal rights at the time of purchasing the property, more so form private builders.
5. Coming to the legal recourse available to you, you may send a lawyer's notice through your lawyer to the builder asking him to refund the entire amount. If he does not respond to the notice then move to consumer court and seek refund of the amount with interest.
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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