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What you get back depends on your agreement and who is at fault. If you cancel on your own, the builder may deduct a percentage as charges. If the builder delays or breaks the terms, RERA allows a refund with interest. Always read the cancellation clause before you pay.
Nobody books a flat expecting to cancel. But loans get rejected, jobs change and plans shift. Buyers looking at upcoming projects in borivali should know in advance what a cancellation can cost, because the answer is easier to protect before you sign than after.
Two different situations
1. You cancel on your own. The builder has not done anything wrong, but you decide to withdraw. Here, the agreement decides what is deducted.
2. The builder is at fault. The builder misses the possession date, changes approved plans without consent or fails to deliver what was promised. RERA gives you the right to withdraw and get your money back with interest.
If you cancel on your own
Typically, you may lose some or all of these:
- A part of the booking amount or token. Many agreements allow the builder to deduct a percentage as cancellation charges. The exact figure depends on your agreement, so check it.
- Brokerage. Usually not refundable.
- Loan processing fees and legal charges. These go to the bank or lawyer.
- Registration and stamp duty. If already paid on a registered agreement, getting these back can be slow, complex or only partial. Ask a lawyer.
- GST already paid. Treatment depends on the stage and rules. Ask for clarity.
What you usually get back is the balance of the money you paid, after deductions, within the time stated in the agreement.
If the builder is at fault
If the builder fails to give possession by the agreed date, or breaks the agreement in another way, RERA lets you:
- Withdraw and receive a refund of what you paid, with interest, or
- Stay and receive interest for every month of delay.
The interest rate is set by state rules. Keep written proof of the delay and the dates.
A useful RERA protection
A builder cannot take more than 10% of the cost of the flat as an advance without first signing a registered agreement for sale. This limits how much you can lose if you cancel early. Be careful about paying large sums before a registered agreement.
Steps to take if you want to cancel
- Read the cancellation clause in your agreement.
- Send a written notice by email and registered post.
- Ask for a written statement of what will be refunded and when.
- Inform your bank if a loan is involved, so the disbursed amount is handled correctly.
- Keep all receipts, emails and messages.
- Get legal advice if there is a dispute.
How to protect yourself before booking
- Ask for the draft agreement before paying a token.
- Check the refund clause and the percentage that may be deducted.
- Pay in stages tied to construction progress.
- Confirm your loan eligibility before you book.
- Verify the RERA registration.
FAQs
Is the token amount refundable? It depends on the terms. Ask before you pay, and get it in writing.
How long does a refund take? The agreement should state a time frame. Follow up in writing if there is a delay.
Can I transfer my booking to someone else? Often yes, with the builder's approval and possible charges. Check your agreement.
What if the loan is not approved? Some agreements allow a lower deduction in this case. Ask about it before booking.
Final thoughts
The best time to think about cancellation is before you pay anything. Read the clause, keep your payments within RERA limits and keep your records safe. Then, when you are ready to book among the upcoming projects in borivali, you will know exactly what protection you have.
