Buying a house is certainly a major milestone in the life of any person but sometimes due to unforeseen circumstances, one may have to cancel the booking. If you cancel your booking after paying the initial booking charge, you can suffer a loss as the builder collects huge money from the customer citing cancellation charges and breaking the agreement. But, the Real Estate Regulatory Authority (RERA) has now implemented a new rule in the interest of home buyers, that protects them from the large cancellation fees levied by the builder.
Earlier, builders used to charge up to 10 per cent of the total cost of the house as cancellation charges but according to the new rule, it has been lowered to just 2 per cent. This means that if someone cancels the booking of the house, he will have to pay only 2 per cent of the total price as a loss to the builder. Maharashtra RERA claims that the new regulation will save homebuyers thousands of rupees. It has stated that charging a ten per cent cancellation fee for agreements of this kind between a builder and a home buyer is wholly unjust.
In December 2022, the administration modified yet another regulation. According to the government, in the event that a consumer needs to cancel their booking for a house, they would receive a refund for the GST they paid at the time of purchase. In the event that a booking is cancelled, builders will no longer be permitted to withhold GST money from the consumer due to the implementation of appropriate regulations. The client has two years after the agreement’s cancellation to withdraw their GST at any time.
House booking can sometimes get cancelled due to some default on the part of the builder, take for instance, the inability to allot the house to the customer within the stipulated time. In such a case, the customer can cancel his booking and get a full refund.
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