A Homebuyer many a times cancel their allotment, and end up losing a huge amount. To deal with this, MahaRERA came up with a proforma that states how much can a builder charge if the homebuyer cancels the allotment.
By Varun Singh
A Homebuyer cancelling their booking, most of the times end up losing exorbitant amount. Maharashtra Real Estate Regulatory Authority (MahaRERA) has come up with a proforma with a table that clearly states, how much amount can be deducted from a homebuyer when the homebuyer cancels his booking.
Recently MahaRERA came up with a circular, that has given a dedicated table with a time line allowing builders to deduct a certain amount when a homebuyer cancels his booking.
The table states that if homebuyers cancel their booking within 15 days from issuance of the allotment letter the amount to be deducted will be nil.
If the booking is cancelled within 16 to 30 days from issuance of the allotment letter; then amount to be deducted is 1% of the cost of
the said unit.
If the homebuyer’s booking is cancelled within 31 to 60 days from issuance of the allotment letter, then the amount to be deducted is 1.5% of the cost of the said unit.
If the homebuyers booking is cancelled after 61 days from issuance of the allotment letter, then the amount to be deducted is 2% of the cost of the said unit.
The circular by MahaRERA further states that the amount deducted shall not exceed the amount as mentioned in the table.
Not only this, MahaRERA has also specified interest payment in case of delay in making payments, by homebuyers.
MahaRERA has states, that the in case of delay in making any payments, the homebuyer shall be liable to pay interest at the rate which shall be the State Bank of India highest Marginal Cost of Lending rate plus two per cent.
This means now builders cannot have their own way and will have to follow these guidelines issued by MahaRERA.
Bombay High Court, Advocate Prakkash Rohira, said, “While most developers have their own method of ‘booking form’, ‘allotment request form’, ‘application form’, we often find homebuyers who sign and submit certain documents being orally misled and in writing have made a misleading commitment. With such order Maharera simplifies and clarifies several grey areas, and makes it binding on the developer for follow such format, or if deviated publish the same.”