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Builders and their sales staff usually try to fool the customer by saying that once token or booking amount has been given, and the application or flat-booking form has been signed by the customer, the booking cannot be cancelled. They put pressure on the flat-buyer by saying that if he tries to cancel his flat-booking, the entire token or booking amount, or 10 percent of the total consideration of the flat, will be forfeited by the builder.
This is not the correct and lawful position. Flat-buyers should understand that until and unless the builder-buyer agreement has been duly executed, there is no transaction, and therefore, the builder is required by law to refund the entire amount in case of cancellation by the customer.
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Krishnaraj Rao
9821588114 and 8169471229
krish.kkphoto@gmail.com
Twitter @BravePedestrian
Mumbai
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