• Cancellation of villa booking due to hiding fact

I bought one villa from a reputed builder, i paid whole amount (partly by me, partly by bank), registration has not been executed. But one rainy day, water came inside the villa, builder assured that iymt will not happen again as they have taken action. But again it came inside. Now i dont want to take that villa , can i legally in upper hand as registration has not been done
Asked 4 years ago in Property Law
Religion: Hindu

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13 Answers

You can  call upon builder to execute registered sale deed in your favour 

as far as leakages are concerned builder is bound to rectify leakages 

 

if he fails to do so file complaint against builder before RERA and seek orders to direct builder to rectify leakages and execute registered sale deed in your favour 

Ajay Sethi
Advocate, Mumbai
97608 Answers
7901 Consultations

Buyer can cancel the booking before registration of sale deed. Developer can forfeit 10% if cancellation without builder fault.

Water flow in the property is improper construction. Send notice for full refund with interest. Cite the reason of cancellation.

If not refunded, complain to RERa and consumer complaint.

Yogendra Singh Rajawat
Advocate, Jaipur
23012 Answers
31 Consultations

Yes you can refuse to take it in aforesaid irregularity

Prashant Nayak
Advocate, Mumbai
32938 Answers
209 Consultations

You can give him a legal notice stating that you don't want the villa and you wish to cancel the agreement and therefore meony should be refunded to you. 

If he doesn't accept it then file a complaint in the consumer forum for deficiency in services and unfair trade practices.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

Hi

We understand your point of view and it is highly sad that builders (especially gated community builders) have scant regard for following lay out and building plans resulting in water seepage inside villa's. 

Legally you can claim refund of money given that 

a) Builder has not handed over possession and 

b) faulty/ irregularities in lay out design resulting in water seepage in to the villa. 

Water seepage in to the villa comes under category of negligence vide 2(o) of the consumer act and hence considered a tortious act. 

Option 1: 

You  can file complaint against the builder  under Section 31 (1) of RERA Act and also make an application for investigation in to poor quality of lay out against the builder vide section 35(1)(4) of the act. 

 

Option 2: 

You can proceed against the builder under Consumer Protection act u/s 2 of Consumer Protection Act for negligence,  defective goods, deficiency of services or hazardous goods or service

 

RERA in our opinion seems to be working faster, given that RERA is specific to real estate whereas consumer protection act encompasses all consumer related issues(medical, travel, reality, insurance etc) and also that there is a huge backlog of cases at all consumer forums.

Also , given the fact that RERA has investigation powers (unlike consumer forum), approaching RERA may be beneficial in your case.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

first of all you assess the situation through an independent engineer about the habitable condition  as well as future safety  when the similar situation occurs.

If the report do not recommend or gives an adverse report, then you can issue a notice to the builder intimating your decision to cancel the booking  of the villa for the said reasons and you can attach a copy of the engineer in this regard.

You can ask the builder to return the booking amount.

If the builder do not respond or do not comply with the demand made, you may approach RERA or consumer forum for relief and remedy.

 

 

T Kalaiselvan
Advocate, Vellore
87806 Answers
2365 Consultations

In your case full amount is paid by you and kindly check your registration may have done because unless and until title of ownership is not done bank won't reimburse money to builder. So on what basis bank had transfer the money to builder.

 

If such policy is there with particular bank than you can perform now tripartite agreement and find such new buyer for villa to appropriate amount.

Ganesh Kadam
Advocate, Pune
12997 Answers
264 Consultations

You can file a complaint against the builder in the consumer court for cancelling your purchase and getting the compensation. 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

Yes,Definitely. 

Either you may force the Builder to execute the project as per plan or refund your advance payments if the project is under RERA .

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

You can issue a legal notice to builder fix immediately leakges before executing registered sale deed. if he refused Or failed, you can file complaint before district consumer court on Defiency of services. 

Mohammed Mujeeb
Advocate, Hyderabad
19326 Answers
32 Consultations

Dear Sir/Madam,

You are suggested that you will have an upper hand but you are required to serve a legal notice to the builder and then file the case, if notice is not complied with. 

Ganesh Singh
Advocate, New Delhi
6769 Answers
16 Consultations

Yes you can proceed for cancellation of sales agreement on this ground by sending a notice for cancellation of agreement.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

- You should issue a legal notice after mentioning the facts in details , and thereby terminate the agreement executed with the builder. 

- Further, if no response , then file a complaint before the Consumer forum on the ground of deficiency of services by the builder , and also claim compensation as well . 

Mohammed Shahzad
Advocate, Delhi
14773 Answers
225 Consultations

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