Failure by a homebuyer to pay the next immediate installment after raised by the builder within 15 days can lead to cancellation of the allotment.
By Varun Singh
When one buys a home, the homebuyer buys his dream, it is not just a house that will accommodate him and his family but will decide how their future will be.
Similarly when a developer builds a home he’s doing it to carry out a business, which will help him and his family survive. Also he has to pay his staff, who survive on the money coming from the homebuyer.
There are many a times that a homebuyer knowingly, or unknowingly fails to pay the next instalment.
In this case, what is expected of a homebuyer to do, the homebuyer should pay the instalment within 15 days of the builder raising the claim.
If the homebuyer fails to make the payment within 15 days of such claim being raised by the builder, the builder is entitled to cancel the allotment.
On August 12, MahaRERA came up with a circular that has defined how the allotment letter or agreement for sale will look like.
In this under the clause 12 of the proforma uploaded by MahaRERA, it has mentioned the following.
“In the event the booking amount is collected in stages and if the allottee fails to pay the subsequent stage installment, the promoter shall serve upon the allottee a notice calling upon the
allotted to pay the subsequent stage installment within 15 (fifteen) days which if not complied, the promoter shall be entitled to cancel this allotment letter.”
The clause further reads, “On cancellation of the allotment letter the promoter shall be entitled to forfeit the amount paid by the allottee or such amount as mentioned in the Table enumerated in Clause 9 whichever is less.”
Details of table 9 is as follows:
Now the developer has legitimate reason to cancel the booking on account of failure from the homebuyer to make payment to him.
