Important Factors to be considered before cancelling a Property Deal.
By Abhay Harish Shah , Realty Quarter
There are times when we get excited and indulge in something which later we don’t like. In the case of buying a property, you may hear some exciting opportunity for investment and want to cancel the property deal which you booked last week. Many a time an individual wants to withdraw its property deal, due to the inadequacy of paying the rest amount or the developer is delaying the possession time. For this, a person should acknowledge certain factor which might guide to cancel the property deal correctly.
According to the Government of Maharashtra, a person can claim the refund for stamp duty he paid within 6 months from its payment. The government is likely to deduct 1% of the stamp duty which is subject to a minimum of Rs 200 and a maximum of Rs 1,000 of the stamp duty paid.
If the developer is delaying the project possession and an individual wants to cancel the deal, in such case the Maharashtra government allows a longer period of two years from the date of the agreement, for claiming the refund of the stamp duty, subject to certain conditions. Meanwhile, this is only applicable to the cancellation agreement which is registered and the developers fail to hand over the possession of the property booked.
At the time of cancellation, a buyer can expect a refund of 98% of the stamp duty if an application is made for a refund of the stamp duty. The documents required for the refund application are 1) Original Agreement and 2) Original cancellation deed with both the documents being registered. However, you will not get a refund of the registration charges.
Important Factors to understand:
1) Generally, a Builder-buyer agreement which includes sale agreement or property allotment documents carries cancellation policy. Go through the document in detail as the cancellation is subject to the agreement terms.
2) Always keep the acknowledgement document you receive especially at the time of payment.
3) Pay through cheques or other methods which can be recorded instead of paying in cash.
4) Always, have a written consent as verbal promises and assurances are not considered as valid in court.
A developer has a right for cancellation charges which usually ranges around 10% of the cost of the property. This deduction is done before refunding the booking amount. As there are no guidelines declared by the government the deduction is done at the builder’s preference and some builders might waive it off in some cases.