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Cancellation of Registered Flat Due to Covid Situation

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Cancellation of Registered Flat Due to Covid Situation

Last updated: May 29 2020
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  • Cancellation of Registered Flat Due to Covid Situation

    Hello Adviser,

    I have booked a flat to a reputed builder in Pune for agreement value of 42 lac approx where i have paid 1 lac booking amount to builder followed by 3.25 lac as stamp duty and registration seperatly.

    Due to Covid situation, i want to cancel the deal as i don't see any financial security and also not sure about this investment at this point due to obvious reason of pandemic and current economic situation as all are known to.

    My registration happned in Dec 2019 and now i have asked builder to cancel this deal as i'm not capable to proceed with the same due to above mentoned reasons.

    Can someone please help me how can i smoothly go with this cancellation and get maximum refund to this situation.

    I heard our FM calling this pandemic in force majoure act whic applies to all the real estate sector.

    I also heard that there is cancellation deed we need to mutually sign with builder and it has seperate charges associated as per agreement value. Is cancellation deed charged? How much? Is it seperate as that of earlier made for registartion and stamp duty ?

    I have been going through lot of stress sue to such situation and want to get refund as i have already invested almost 4.5 lac on which i'm demading this refund to get assured.

    I have no problem with builder and their staff as everything is excellent but just time is bad.
    Last edited May 28 2020, 07:10 PM.
  • #2

    #2

    Re : Cancellation of Registered Flat Due to Covid Situation

    Have you spoken to the Builder on this and what is his response? What all papers did you sign with the Builder and what clause/s do they have on cancellation by allottee?

    As far as I know, In Maharashtra, you are entitled to claim a refund of the stamp duty ( with some minor deductions ), within six months from its payment. There is no refund of registration charges, as far as I know. Do cross-check on these, as rules could have been revised.

    Also, what is the name of the Builder/Project? A thread may already exist on the Project and there could be other members facing similar issue. If a thread on the Project already exits, this thread would then be required to get merged with the original existing thread.
    Last edited May 25 2020, 10:28 PM.
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    • #3

      #3

      Re : Cancellation of Registered Flat Due to Covid Situation

      I have a similar concern. I have given 6 lacs in total. 2.5(stamp duty & regi.) and 3.5 to builder.

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      • #4

        #4

        Re : Cancellation of Registered Flat Due to Covid Situation

        Originally posted by realsuraj16 View Post
        I have a similar concern. I have given 6 lacs in total. 2.5(stamp duty & regi.) and 3.5 to builder.
        As far as i know, 2 things:

        Stamp duty (5%) is refunded if cancelled within 1yr

        Money paid to builder: he is allowed to charge 10% cancellation fee, unless this force majeur clause can be used; again using it can be tricky as job loss/ financial incapability has to be shown not probability

        Since govt has already invoked this clause to extend all project timeline by 6months, it's still not clear that it can be used by consumers to cancel/delay payments..ideally should be..

        Hope someone files a PIL and gets clarity on the same....developers wants all payment delay but no collections delay...

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        • #5

          #5

          Re : Cancellation of Registered Flat Due to Covid Situation

          The Government seems really confused and seems to be issuing new orders every day on many things in haste and then withdrawing/amending them later.

          So, either wait for clarity to come or as said, file a PIL and seek required clarification.
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