The downturn in the real estate market has caused many investors and purchasers to revaluate their consumer choices. People frequently book an apartment but are not able to complete the purchase owing to unforeseen circumstances. According to property consultants, although the majority of cancellations are the result of purchasers evaluating their financial situation, another typical reason is unneeded project setbacks.
How can I cancel an apartment reservation?
The majority of individuals are ignorant of how to cancel an apartment reservation. This causes issues when requesting a refund. According to Prashant Nath of PropertYes De Emirates, there are no government norms or limitations governing the cancellation of an apartment or the reimbursement of the booking deposit. “How quickly your cancellation procedure unfolds is largely determined by your relationship with the developer,” explains Prashant Nath.
Essential factors to keep in mind
- Termination provisions are common in builder-buyer agreements, such as sale agreements or property allocation forms. Examine the documents thoroughly because cancellation is subject to the terms stated.
- Save any acknowledgement paper you get, particularly if it is in place of payment.
- It is preferable to pay by check or another recordable method rather than cash.
- In the event of a cancellation, any VAT or service tax paid will not be returned.
- All communication should be done in writing. Verbal assurances and pledges will not be accepted in court if a complaint is brought.
Even if no builder-buyer agreement was formed, you have the opportunity to cancel a booking and receive a refund. Experts caution that the cause for cancellation must be legitimate or you may face legal consequences. In the absence of any formal contract or agreement, keeping assignment letters and payment receipts is critical. Application forms, acknowledgement letters, and allotment letters may include cancellation conditions and restrictions that can be utilized to get a return from the builder.
What exactly are flat cancellation fees?
According to Prashant Nath, it is normal for builders to collect a cancellation fee, typically 10% of the cost of the property, before refunding the booking payment. In addition to this fee, any government tax paid by the buyer, including such stamp duty, VAT, or service tax, would be removed from the refund. He says that because there are no government rules, the deduction is performed at the whim of the builder, and some builders may even waive it in specific situations.
According to law expert Atulay Nehra, cancellation fees are typically included in the builder-buyer agreement.
Should you seek legal counsel while cancelling an apartment reservation?
If you intend to cancel an apartment reservation, it is advisable to acquire legal advice to prevent any complications later on. A legal professional will be able to assist you with the entire procedure and guarantee that you receive exactly what you deserve. Cancelling an apartment reservation entails various administrative procedures that a layperson may be unfamiliar with. It is not advisable to just send an email to the builder demanding a cancellation. A lawyer may assist you with any written correspondence as well as submit a complaint if you believe your rights have been violated in any manner.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.