Can a builder cancel a registered flat?

Curious to know can a builder cancel a registered flat? Under RERA in India, a builder cannot arbitrarily cancel a registered flat once the Sale Agreement is executed and the power to cancel exists strictly under specified conditions in the agreement and the Act. RERA Section 11(5) mandates that cancellation rights are limited to explicit clauses within the registered Agreement for Sale typically, the only valid ground being the buyer’s failure to pay dues on time, as per contract terms.

Can a Builder Cancel a Contract?

Cancellation must follow due legal process: issuing adequate notice, allowing the buyer time to cure, and following any procedures laid out in the agreement.

A landmark case in Telangana exemplifies this: a builder unilaterally cancelled allotments of 14 buyers who had paid fully. The State RERA deemed this invalid, holding that builders cannot rescind flats arbitrarily after full payment, and imposed penalties while ordering registration of the flats in buyers’ names.

Moreover, once the Sale Deed is registered and payment is complete, cancellation becomes even more restricted. Only a court or RERA adjudicating officer can rescind the sale typically under rare conditions like fraud or misrepresentation at the time of contract.

You can file a complaint with the State RERA Authority to seek specific performance, restoration of the allotment, or damages. Claim a refund with interest if cancellation is lawful but delayed, per RERA timelines. Seek compensation for any losses or mental anguish due to illegal cancellation.

Cancellation of a flat can occur in numerous cases and for varied reasons. Either the home buyer decides to back out of the deal or the builder might end up in trouble and hence not proceed with the sale. Anyway, your question is quite valid and should be addressed properly. Let me tell you can a builder cancel a registered flat RERA or not. 

Can builder cancel flat after registration under RERA?

It is a tricky one as the builder can do so through the legal route if the buyer is unable to pay the amount as per the agreement signed with the buyer. However, if the builder gets caught in the middle of legal issues with regards to the project, the buyer must proceed with the cancellation after reading the terms and conditions of cancellation mentioned in the signed agreement. He/she can also seek legal advice on the same.

What are the important facts about the flat cancellation by the builder?

1) The builder has no authority to cancel the agreement due to the buyer's misbehaviour if the seller and buyer have signed a sales agreement. The builder can’t cancel it if the buyer has fulfilled all requirements and conditions of the agreement.

2) The builder cannot cancel a deed if the buyer paid full payment and it was registered. Only a court may do so if it can be proved that there was scam and fraud at the time of execution.

3) It is impossible to cancel a sale deed if it has been recorded. The builder may cancel, but mostly in line with the agreement and conditions of the agreement to sell.

What things to remember as a buyer?

• The builder-buyer agreement must be recorded before you as a buyer has any legal rights to the property.

• Check the cancellation of booking condition thoroughly, and if you discover that it strongly favours the seller, ask to have it modified.

• Obtain a receipt from the seller for each transaction, and maintain a safe copy of each one.

This is all from my end about can a builder cancel a registered flat.