Money Refund process after Cancellation of the Agreement
Property buying and selling is a common practice in the Real Estate Market. According to their requirement, people search for property to buy or sell. As many of them would have faced some issues while cancellation of the property.
There can be multiple different scenarios for the cancellation of the deal, and we put efforts to get back our paid amount which can be given in the form of Token Amount, Stamp Duty, and GST.
We will discuss here a few important points one by one and try my best to unlock those issues which may help to resolve the challenge of refund.
At the current time, all the developers have created things for the booking process that starts from the Pre-launch Phase to the Launch Phase and Completion of the Project. Developers invite customers at the pre-launch of the project and demand a token amount in the form of an Expression of Interest (EOI). Which price was quoted at the time of the pre-launch period developer come up with a new discounted price at the time of launch.
If the given price by the developer at the time of the launch is not according to the EOI, customers can cancel the deal and demand the EOI amount. The developer will refund that full amount within 30-60 days. It varies according to developers.
In resale property buying if any client wants to cancel the deal but has paid the token amount then it’s forfeited the token amount unless parties have made a notarized agreement.
Process of getting refund of Stamp Duty amount according to Maharashtra Government.
We all know very well about the stamp duty and registration process which we follow and paid for the property buying. Charges of stamp duty and registration vary from time to time.
If the booked property has been registered and the developer fails to deliver the booked property in this situation, as the reason is mentioned in the cancellation deed, the buyer can get a refund of 98% of the stamp duty, if the application is made for a refund.
In the case of cancellation of registered property as Maharashtra government allows a period of 6 months from the date purchased to 2 years to claim for the refund of stamp duty amount, subject to certain conditions.
With the refund, the application is required to attach both the original agreement copy and cancellation deed and both documents being registered.
In which situations can claim for stamp duty refund
- If you have paid excess stamp duty of Penalty.
- In the case of cancellation of documents because of non-judicial paper used or vice versa.
- If the court is allowing you to get the refund.
- In the case of stamp duty deducted twice on the same one.
- In the case of stamp duty paid to different departments.
- In the case of cancellation of the agreement with developers or vendors.
As per the Maharashtra state government section 48 of the Bombay stamp act 1958, allow property buyers up to 2 years to claim for refund of stamp duty from the date of cancellation of the agreement with developers.
In certain conditions of cancellation of property such as ( suppression of any material fact or dispute regarding the property, financial dispute in terms of agreed consideration, Inadequate finance, etc.)
How to claim Stamp Duty?
Now, Maharashtra Government has made it so easy by the online process of claiming a refund of Stamp duty for Maharashtra people from anywhere.
- An Applicant has to visit on government site and fill out the refund application form online.
- The applicant once fills the details then take out the acknowledgment.
- copy for their record which is filled.
- The applicant will submit all the documents in the collector office physically
- Once you submit the documents then collector’s of the stamp will process this case.
- Applicant can check the process online.
A List of Documents has to be submitted for refund Process
- Original copy of Purchased stamps
- Affidavit in prescribed format
- Sales stamp Certificate
- A true copy of Sales stamp register
- Deposit copy of Challan in Treasury
- Power of Attorney (If anyone)
- applicant’s Identity Card
- Grass Challan
- Original documents with Xerox copy, etc.