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Builders can deduct deposit amount if buyers opt out without reason
Real Estate

Builders can deduct deposit amount if buyers opt out without reason

The Haryana Real Estate Regulatory Authority (Haryana RERA) has announced that if buyers want to withdraw from a project for no apparent reason, the builders may deduct or forfeit the deposit money as stipulated in the agreement.

The authority was hearing a lawsuit brought by property buyers against Godrej Premium Builders and Magic Info Solutions during the Godrej Summit project in sector 109, Gurugram.

According to the facts of the case, the builder-buyer agreement was signed in 2013 and possession was to be given in 48 months, with a six-month extension. The project was given out in 2017.

Buyers claimed in their complaint that the builder failed to provide a project status report as well as building plans, so they decided to withdraw from the project and sent a mail-in 2015 requesting cancellation and a refund of the deposited amount less 2% of the maximum within two months, which the builder accepted.

The builder, on the other hand, later sent a demand letter for the balance.

Godrej claimed in their lawsuit that because the apartment was booked through Magic Info Solutions, they are responsible for all acts related to the transaction.

The buyer booked the property to their satisfaction and chose a development linked plan, according to the legal counsel of Magic Info Solutions, Kapil Madan and Saurabh Gauba.

All project details were shared with all buyers including the complainant and the project was completed on time. Furthermore, all of the information was made available on the website.

According to the builder, they offered a refund after deducting 20% of the deposited amount as per the agreement. However, the buyers are not prepared to accept the same.

After hearing the case, the authority concluded that the builders were not at fault for not delivering possession on time, for failing to provide information about the project progress, or for misrepresenting any facts.

Buyers were unable to demonstrate what was promised to them, so they chose to cancel their unit and request a refund.

If the complainants choose to withdraw from the project, the builders have the right to deduct/forfeit the agreed-upon amount.

Image Source


Also read: UP-RERA rejects registration application of Supertech projects

Also read: Homebuyers body urges govt to implement RERA in West Bengal

The Haryana Real Estate Regulatory Authority (Haryana RERA) has announced that if buyers want to withdraw from a project for no apparent reason, the builders may deduct or forfeit the deposit money as stipulated in the agreement. The authority was hearing a lawsuit brought by property buyers against Godrej Premium Builders and Magic Info Solutions during the Godrej Summit project in sector 109, Gurugram. According to the facts of the case, the builder-buyer agreement was signed in 2013 and possession was to be given in 48 months, with a six-month extension. The project was given out in 2017. Buyers claimed in their complaint that the builder failed to provide a project status report as well as building plans, so they decided to withdraw from the project and sent a mail-in 2015 requesting cancellation and a refund of the deposited amount less 2% of the maximum within two months, which the builder accepted. The builder, on the other hand, later sent a demand letter for the balance. Godrej claimed in their lawsuit that because the apartment was booked through Magic Info Solutions, they are responsible for all acts related to the transaction. The buyer booked the property to their satisfaction and chose a development linked plan, according to the legal counsel of Magic Info Solutions, Kapil Madan and Saurabh Gauba. All project details were shared with all buyers including the complainant and the project was completed on time. Furthermore, all of the information was made available on the website. According to the builder, they offered a refund after deducting 20% of the deposited amount as per the agreement. However, the buyers are not prepared to accept the same. After hearing the case, the authority concluded that the builders were not at fault for not delivering possession on time, for failing to provide information about the project progress, or for misrepresenting any facts. Buyers were unable to demonstrate what was promised to them, so they chose to cancel their unit and request a refund. If the complainants choose to withdraw from the project, the builders have the right to deduct/forfeit the agreed-upon amount. Image Source Also read: UP-RERA rejects registration application of Supertech projects Also read: Homebuyers body urges govt to implement RERA in West Bengal

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