Can builder deduct 25% of amount on cancellation of flat

575 votes

Yes as per terms of the agreement he can forfeit the amount as you only have signed it unless force,coercion undue influence is pleaded in your case it does not seem the case such that 25% can be deducted legally however you may negotiate with the builder with help of lawyer.

Advocate Nitish Banka LawRato

943 votes

If such a term exists in the agreement, in law, the builder can certainly deduct such amount. but we well have to find a way to wriggle out of the same. we can contend that the clause was made to be signed under coercion and undue influence. the clause amounts to unfair trade practice so on and so forth. it will be an uphill task but we can surely give it a shot. filing a consumer complaint for the refund of the cancellation amount will be more effective and efficient.

Advocate Rahul Malhotra LawRato

580 votes

I understand that your In laws have booked a flat and paid Rs. 5 lakhs as booking amount. Later they paid Rs. 25 lacs on multiple dates as part payment for the property. However, due to financial issue, they cannot pay remaining amount and hence would like to cancel the booking. Builder buyer agreement says that developer will deduct 25% of the property price (25 lakhs in this case) if the buyer cancel the flat and is signed by both parties. Can builder forfeit 25% of the flat price.

Yes, builder can forfeit 25% of the flat price as it is written in the agreement. It is totally upon the developer that they want to settle the amount by negotiation or not.

Advocate Parveen Arya LawRato