The RERA empowers the homebuyer to cancel an allotment of the apartment booked with a builder at any stage even if there is no default on the part of the developer. It binds the builder to return the money collected from the buyers within 45 days of such cancellation after deducting the booking amount.

2)forfeiture by the developer is not legal and proper as per provisions of RERA.

3)the promoter to forfeit only 2% of the consideration of a flat, if the booking is cancelled 61 days after issuance of the allotment letter.

4) if builder refuses to refund your money file complaint against builder before RERA and seek refund of money paid by you with interest 

- As per rule, if the buyer backs out from the deal, the seller has the right to forfeit the token money paid. With respect to such forfeited token money,

- However, the Supreme Court has declared in the case of Fateh Chand , that a mere breach of contract by a buyer does not entitle the seller to forfeit the amount as received, unless, loss is proved to have been caused to the prospective sellers. 

- Hence, if you are cancelling the agreement entered with the builder , and if the builder has not suffered any loss from the same then he has not right to forfeit any amount paid amount by you. 

- You can claim full refund of the paid amount i.e. 13L from him .

In case the builder refuses to give back the booking amount.

The buyer will have to move the state real estate regulatory authority or the consumer forum to seek relief, in case the developer refuses to pay the booking amount.

If there is any condition stating that he  will forfeit  then it is not maintainable because it is one sided agreement and not maintainable in law.

You first of all communicate your decision to cancel the booking in writing to the builder and demand refund of your booking amount after deducting the administrative charges.

If he is refusing to return the amount you can either make a complaint to the RERA or drag him to consumer forum for return of your booking amount and also for compensation for the mental harassment he caused. 

1. The buyer of a sale agreement can always cancel the agreement. However in such cases the penalty like forfeiture of any amount would depend on the terms and conditions of the agreement.

2 . Ernest money means the booking amount and not the first installment. In most cases if the amount of earnest money is not huge forfeiture is held legal by the courts.

3. No

4. First talk tot him to know the deductions  if cancellation is opted by you. 

1. You action of withdrawing from buying a flat three months after signing sale agreement is permitted in Law.

2.  The cancellation policy of the Builder is bad in law and only a part of the advance amount can only be forfeited against cancellation. It will not be legally correct for the builder to have no refund policy.

3.   You will not lose your entire 13 L.

4.    Send a legal notice to the builder to return your advance amount of Rs. 13 L forthwith.

5.    If there's no positive response, complain against the Builder to the jurisdictional RERA.

In every such agreement of sale, there is a clause specifying the amount of deduction the builder is entitled to while refund takes place owing to a cancellation by a prospective buyer. Check your agreement on this. 

Dear Client,

Whether you can withdraw from the agreement depends on the terms outlined in the Sale Agreement you signed with the builder. Generally, most Sale Agreements include provisions for cancellation and withdrawal, but they often come with certain conditions and penalties. Regarding the builder's cancellation policy, it's not uncommon for builders to have clauses stating that the entire amount or a portion of it will not be refunded in case of cancellation. However, the legality of such clauses depends on the specific terms and local regulations governing property transactions in Hyderabad. It's advisable to consult with a legal expert or a real estate attorney who can review the agreement and provide guidance on the legality of the cancellation policy. If the builder's cancellation policy states that the entire amount paid will not be refunded, then there's a possibility that you may lose the entire 13 lakhs. Again, this would depend on the specific terms of the agreement and the applicable laws. Your options may include negotiating with the builder for a partial refund, seeking legal advice to understand your rights and options, or exploring alternative solutions such as finding another buyer for your Bangalore plot or finding alternative sources of funding for the flat purchase. It's essential to carefully review the terms of the Sale Agreement.