Can builder forfeit the amount if we have not signed agreement

878 votes

Dear
The builder cannot forfeit the booking amount or 10% of it is there is a genuine and strong reason for you to not go ahead with. If the builder is insisting to forfeit then you can telll him that you will approach proper legal forum and take legal action. if he doesnot agree then you will have to take the next legal course of action.
you will have to approach the RERA or Consumer court.
If you need any further help or assistance in this regard you can revert back to me.
Thank you.

Advocate Sharada H V LawRato

867 votes

We have booked a flat recently in Bangalore and given 10%of sale value as booking amount. The agreement is not signed . we thought of cancelling the flat due to some financial issues. However booking form have got a clause that if we are cancelling the entire booking amount will forfeited .So in our case the 14L they are planning to take away if we cancel the flat. Would like to know whether they demand is correct or not, as we are not signed the agreement.

They cant take that much amount. Please contact any advocate along with the copy of the all the document. Mo rover the agreement is not signed .

Advocate M Lakshmikanth Arya LawRato

827 votes

Sir, You better questioning the legality of the clause before the consumer court. The huge amount involved in this case, that amount can be refunded from the builder. The builders are using tactics to gain the money without service and efforts. You have better option to file a complaint before the consumer Court. If u want further clarification, plz contact me.

Advocate Bhojappa Kallihala LawRato