Cancellation of residential flat booking

POSTED BY Muthu ON June 19, 2012 11:57 am COMMENTS (8)

Hi All,
Please help.

I booked a residential flat through a TPA agreement (Tripartite agreement – Out of the whole land area, the builder can sell 60% and the land owner 40%). I bought the flat from the land owner, himself. I paid a booking advance of 2 lacs initially. Since I must pay 20% of the total flat cost, I paid another 4 lacs (totally 6 lacs) and entered into the TPA agreement.

When I went to sign the construction agreement, there was no clause mentioned where the builder will pay compensation to the buyer, if there are any delays in completion. When I put forward the condition to the land owner, he said that there wont be any inclusion of this clause and if Im not comfortable, I can cancel the booking and he will refund the amount (6 lacs).

When I was about to give the cancellation letter, he said that there will be a deduction of 20k for legal and documentation and he will refund only 5.8 lacs. There was no such clause mentioned anywhere in the TPA sale agreement signed between me, the landowner and the builder.

How can the seller charge me for cancellation when the issue is not created by me? All the payments made by me are through Cheques and the land owner had given receipts for the same.

How do I go about this?

8 replies on this article “Cancellation of residential flat booking”

  1. Vijesh Pillai says:

    I booked a house 40 days back. I have paid 50 k as advance token amount. No agreement was made nor I got any receipt. Payment was made through cheque.I want to cancel the booking. But as per builder he will return money only when house is purchased by someone else. This clause is written in brochure. Could u please suggest me what should I do

    1. If its already written, then you have to follow it !

  2. Dhavan Rathore says:

    Hi Guys,
    I have simiar experience with my builder. Builder is saying that 50K will be deducted and refund will only be done when the other person will take that flat,

    I dont know how much time they would take to refund remaining money. Usually how much time anybody should take to refund amount? Any suggesion what i should do?

    1. Its going to be really tough for you to get that 50k unless its there in the agreement you did with the builder

  3. Joker says:

    Gud god.. I got the entire 6 lacs refunded. Thanks Ashal for your advice.

    Ofcourse the experience was bad, but was a good learning.

    1. Dear Joker, nice to hear you again. The best part of your story – learning was free – no money loss. 🙂



      1. ameet says:


        I have booked a flat till now i have given 1 lac not i want to cancel flat builder is saying for 25K cancellation fee.could you please suggest me.

  4. Dear Joker, Please ask the land owner to reduce the fee charging for cancellation. Else accept the offer & received those 5.8L Rs. & use this experience as a learning for you.



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