How you can get out of a property deal

Buying a house is a dream that a lot of Indians have had for a long time. But it is not an easy dream to have. It can often turn into a nightmare. So one has to be very careful while going about undertaking this process. Go into it with eyes wide open. No point in regretting this decision later.

Buying a house is a decision that requires meticulous research and precaution as once you sign along the dotted line it is nearly impossible to reverse a sale. However, very often when we invest in a property, we get carried away by an over exaggerated sales pitch or fall victim to an overly aggressive salesperson or you simply get cold feet after paying the initial amount. So what do you do when you want to walk away from a closing?

We bring you a few tips how to cancel your booking after you have made a financial commitment to the builder.

Read all agreements and documents

If you have a sudden change of mind and want to cancel your booking, the first thing you need to do is to read the document, looking for loopholes that would assist you. Many developers have a cancellation clause where they offer a refund option if the project is delayed beyond a specified time. You can take advantage of this clause and cancel your booking whilst claiming a refund with a simple interest rate.

No agreement

If you have made an initial payment, but there is not agreement, then experts claim that the process of purchasing a property has not commenced. If you have paid the amount by cheque you can recover the amount from the builder by showing the developer a receipt of payment or allotment letter. If the builder refuses a refund, you can always go for help to the Indian consumer court or then file a civil case for recovery.

Cancellation fee

Many builders have a clause for a cancellation, wherein if the home buyer changes his mind about the property deal, then a predetermined fee will be levied on them. Paying this fee is also a simple way to get out of a home agreement if you have changed your mind.

However, buyers must know that if they have paid stamp duty, registration charges, service tax, and VAT, it will not be returned back to them in the case of cancellation of the deal. Once made, these payments are non-refundable.

So you have to be very careful before you fork over the money to the developer. Take this decision only when you are completely convinced that the property is what you want. There is no point in regretting once you give away by the money. Don’t get pressured into buying the property. It must be only your decision. Weigh the pros and cons and don’t hesitate to pull out if you think that this is not the right deal for you. Better safe than sorry.

 

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