RERA Cancellation Policy: Refund Rules, Booking Amount & Flat Cancellation Charges Explained

Booking a property is indeed one of the biggest milestones in life. But sometimes buyers might face certain situations where they will want to cancel the booking. It could be anything from a lack of finances to delayed projects.

So, to understand how RERA cancellation policy works, you need to understand the rules for refund of booking amount according to RERA and also the flat cancellation fees according to RERA.

Here’s a look at the RERA cancellation policy.

What Is the RERA Cancellation Policy?

The RERA cancellation policy is a set of guidelines for resolving disputes associated with the cancellation of bookings for properties. Even though the RERA Act ensures that there is a certain level of protection for homebuyers, the amount of refund and the cancellation criteria depend upon:

• Agreement for sale

• Stage of construction

• Reason for cancellation

• Provisions available in the RERA Act

There is no fixed cancellation fee in RERA. It differs in each individual case.

RERA Rules for Refund of Booking Amount

The RERA regulations for refund of booking amount vary based on the reason behind cancellation of booking.

If the Buyer Cancels the Booking

In case the cancellation of booking is done by the buyer personally, the builder can charge cancellation fees as stipulated in the Agreement for Sale/booking terms before giving a refund of balance amount.

If the Builder Is at Fault

In case the reason behind cancellation of booking is:

• Delay in handing over possession

• Failure in getting approvals

• Breach of terms

• Misrepresentations about the project

Then, the buyer is eligible for a refund of booking amount according to RERA Act.

Flat Cancellation Charges as per RERA

Often buyers look for cancellation charges flat as per RERA act in terms of some percentage. But in reality, there is no provision regarding flat percentage cancellation as per RERA act.

This is determined according to:

• Builder-Buyer Agreement

• Reason for Cancellation

• Orders issued by the concerned RERA Act, if any

It is better that buyers read the cancellation and refund section before signing any booking form.

When Can a Buyer Seek a Refund?

Some of the circumstances under which a buyer will be entitled to a refund include:

• Project delay

• Failure by the builder to comply with the contract terms

• Abandonment of the project

• Substantial deviation from the agreed plan/specification, within the provisions of the law

The final verdict rests with the prevailing circumstances and the judgment of the concerned authority.

Documents Required for a Refund Claim

In case you want to claim a refund, then having these documents handy would be beneficial for you:

• Booking form

• Agreement of Sale

• Payment receipt

• Correspondence from Builder

• Letter of Allotment

• Details of the Project

• Any documents supporting the reason of cancellation

These documents might be needed when you file a complaint for refund.

How RERA Vision Helps

At RERA Vision, we assist buyers, developers, and real estate professionals with:

• Guidance on RERA cancellation provisions

• Documentation review

• RERA complaint support

• Regulatory compliance advisory

• Project-related legal guidance

Our experts help clients understand their rights and obligations under the RERA framework.

RERA Cancellation Rules are intended to strike a fair balance between buyer’s and developer’s rights. Whether you wish to cancel your reservation or get a refund, it is crucial for you to know the conditions of your contract and the relevant RERA rules prior to initiating any actions.

For all your issues related to documentation for refunds, RERA complaints and other matters of RERA compliance, RERA Vision is at your service.