If property deal get canceled, how can you get refund?

 

There are a variety of reasons, because of why homebuyers proceed to cancel after booking a flat with their builder. In many cases, this buyer starts having second thoughts about his choice. The buyer’s plans of going ahead with the purchase might also be changed because of sudden changes in his financial position (loss of employment, for instance). The buyer may also want to back out because he finds out problems with the project or the developer. Now, whatever your reason be for canceling your property purchase plans, here are certain points you must take note of if you are in such a situation.

The builder is liable to pay you the entire amount if the agreement is not registered. Legally, the developer cannot deduct any money out of the advance payment you have made for the booking till the time a builder-buyer agreement is made and registered with the sub-registrar. In case the builder refuses to give back the booking amount, the buyer will have to move to the state real estate regulatory authority or the consumer forum to seek relief, in case the developer refuses to pay the booking amount. In a scenario where the agreement is registered, the builder gains the legal position to forfeit the entire amount.

Things to that effect are also mentioned in the builder-buyer agreement. The buyer would lose more than the outstanding money, which might include registration charges and taxes. Under the provisions of the Real Estate (Regulation & Development) Act, 2016, a buyer does not attain the position of an “allottee” till the time a builder-buyer agreement is registered, and hence enjoys only limited rights. This is why the process to get the refund would get complicated if due diligence is not shown by the buyer while he is out to book a property. For instance, it would be a grave mistake to make any payments, no matter how small, without having them documented. Ask the builder to give you a signed receipt for the booking advance.

It is also strictly advised that all payments be made to the builder through online channels so that there is a record of the transaction. When a buyer books and flat and then eventually cancels it, but benefits by receiving a higher amount than he initially paid from the builder, the extra money will be treated as capital gains in the tax parlance. This was laid by the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT). The tribunal also made it clear that the excess income thus earned will not be treated as long-term capital gains and be treated as a tax-free income, unless the holding period conditions and other conditions are satisfied.

Our assistance makes sure that you don’t face any such problem as we’re the best real estate site in Noida and allow free property ads posting on site, Bricksnwall.com, top real estate sites for listing which to help connect buyers and sellers without any hassle. We know that buying and selling of a property are both cumbersome tasks which are all various transactions.