Flat Booking Cancellation 2025: RERA Rights, Refund Rules and Letter Templates

One in four people who buy a home in Hyderabad end up cancelling their flat booking before they even sign the agreement to buy the flat. Some people cancel because the project is not moving forward. Others cancel because they are having money problems.Some people are surprised when the builder asks them to pay a cancellation fee of 20 to 30 percent without any good reason.

What we will talk about here is what your rights are under RERA, how money the builder can legally keep, what you should do before and after you sign the agreement to buy the flat and some sample letters you can use to cancel your flat booking. We will also tell you what steps to take if the builder does not give you your money back.

Key Things to Know

When you book a flat you pay some money to reserve the unit. You get a receipt for this. Before you sign the agreement to buy the flat RERA protects your right to cancel. It limits how much money the builder can keep. After you sign the agreement the cancellation terms in the agreement apply. Rera still applies if the builder keeps too much money. If you send a written cancellation notice to the builder they have to give you your money within 45 days. If they do not you can complain to TS-RERA.

1. What is booking and what does it mean to cancel it?

When you book a flat you pay some money, 5 to 10 percent of the total price and you get a receipt. This receipt is a document. If you cancel before you sign the agreement you are basically saying you do not want to buy the flat. If you cancel after you sign the agreement there are rules that say how money the builder can keep.

2. What are your rights under RERA and how money can the builder keep?

RERA is a law that protects people who buy homes. It says that if the builder does not give you the flat on time you can cancel and get all your money back plus interest. If you cancel before you sign the agreement the builder can only keep an amount of money usually the booking amount. If you cancel after you sign the agreement the cancellation terms in the agreement apply. RERA still applies if the builder keeps too much money.

3. Why do people cancel their bookings?

People cancel for reasons. Some people cancel because they are having money problems. Some people cancel because the project is delayed. Some people cancel because they find a flat. Some people cancel because they discover problems with the project. Your reason for cancelling does not affect your right to cancel. It can affect how much money the builder can keep.(Source)

4. How to cancel your flat booking before signing the agreement

If you want to cancel before you sign the agreement you should send a written notice to the builder. You should include your booking details, the reason for cancelling and a request for a refund. You should send the notice by registered post. Keep a copy. If the builder does not respond or does not give you a refund within 45 days you can complain to TS-RERA.

5. How to cancel your booking after signing the agreement

If you want to cancel after you sign the agreement you should read the cancellation terms in the agreement carefully. You should send a cancellation notice to the builder referencing the specific cancellation clause in the agreement. You should include a refund calculation and a request for a refund within 45 days. If the builder delays possession you can reference Section 18 of RERA. Request a full refund plus interest.

6. Sample Cancellation Letters

Here are two sample letters you can use to cancel your booking. You should adapt the details to your situation. Send the letter by registered post.

Template 1: Cancellation before Agreement for Sale

To,

[Builder/Developer Name]

[Project Name] [Address]

Subject: Cancellation of Flat Booking, Unit [Flat Number] [Project Name]

Sir/Madam

I am writing to cancel my booking for Flat No. [ ] [Tower/Block] [Project Name] [Location] which I booked on [Date of Booking]. I paid a booking amount of Rs.[Amount] vide [receipt number / cheque number / bank transfer reference].

I request that you cancel my booking and give me a refund of Rs.[Amount] within 45 days of this notice as per the provisions of the Real Estate (Regulation and Development) Act, 2016.

Please acknowledge receipt of this letter. Confirm the refund processing timeline.

Yours sincerely

[Your Full Name]

[Contact Number]

[Email Address]

[Date]

Template 2: Cancellation after Agreement for Sale (builder delay as reason)

To,

[Builder/Developer Name]

[Project Name] [Address]

Subject: Cancellation of Agreement for Sale, Flat No. [ ] [Project Name] Builder Delay

Sir/Madam

I refer to the Agreement for Sale dated [Date] for Flat No. [ ] [Project Name] [Location] where possession was committed by [Original Possession Date].

As of [Current Date] possession has not been. [X months] have elapsed beyond the committed date. Under Section 18 of the Real Estate (Regulation and Development) Act 2016 I am entitled to withdraw from the project and seek a refund of all amounts paid along with interest at the prescribed rate from the date of each payment.

I hereby invoke my right under RERA. Formally cancel the agreement. I request:

A refund of Rs.[Total Amount Paid]

Interest at the RERA-prescribed rate from the respective payment dates

Confirmation of refund, within 45 days of this notice

If I do not get a response within the given time I will file a complaint with TS-RERA under Section 31 of the Act.

Yours sincerely

[Your Full Name]

[Contact Number]

[Email Address]

[Date]

7. How to get your refund: timeline and steps to take

When the builder gets my cancellation notice they have to give me my money within 45 days. This is what the RERA guidelines say.

If the builder gives me my refund within 45 days that is it.. If they are late I get interest on the money they owe me. The interest rate is the SBI MCLR plus 2 percent per year. I get this interest from the day I sent my cancellation notice.

To get my interest I need to prove when I sent my cancellation notice. That is why I have to send it by registered post. I can also send it by email. I need to make sure the builder got it.

Let me tell you what happened to a buyer in Pocharam. This buyer booked a 2 BHK flat that was still being built. The buyer paid 6.5 lakh rupees to book the flat.. Then the buyer lost their job and had to cancel. The builder said they would keep 30 percent of the booking amount. The buyer did not. Sent a written notice to the builder. The builder then gave the buyer a refund within 30 days. The buyer was able to get their money because they sent a written cancellation notice.

If I do not get my refund within 45 days:

I will file a complaint with TS-RERA under Section 31 of the Act.

I will attach all my payment receipts my cancellation notice and the proof that the builder got my notice.

The person who decides these cases will tell the builder to give me my refund with interest. If the builder does not do this they will be penalized.(Source)

8. What if the builder cancels my booking?

Sometimes builders cancel bookings. They usually do this if I do not pay an installment on time.

If the builder cancels my booking I get:

All my money back. Interest from the day I paid.

The right to go to the RERA authority and ask for compensation for my losses.

I need to check if the builder sent me notices before they cancelled my booking. The builder has to follow the rules in our agreement before they can cancel. If they did not send me the notices I can challenge their cancellation.

I should not accept a cancellation without checking if the builder did everything right. Builders sometimes cancel bookings to get buyers to agree to terms or to give up their booking.

9. Filing a complaint with TS-RERA if the builder will not refund

TS-RERA is the authority in Telangana that makes sure builders follow the RERA rules. Filing a complaint is easy. Here is what I need to do:

I go to the TS-RERA website. Find the complaint section.

I create an account. Register as a complainant.

I file my complaint under Section 31 of RERA.

I attach all my documents:

My booking receipt

All my payment receipts

My cancellation notice

Proof that the builder got my notice

The builders response or a note that they did not respond

My agreement with the builder if I have one

I pay a fee to file my complaint.

After I file the person who decides these cases will schedule a hearing. The builder has to come and respond.

If the decision is in my favor the builder has to give me my refund with interest. If they do not they will be penalized more and more.

Let me tell you what happened to a family in Kondapur. They booked a flat for 1.1 crore rupees. Paid 33 lakh rupees.. The project was delayed by 18 months. They cancelled their booking. Filed a complaint with TS-RERA. The person who decides these cases told the builder to give them a refund with interest. They got back 36.5 lakh rupees in total.

I can find the national RERA rules on the rera.gov.in website.

Before I file or cancel: things to think about

1. Is the project registered with TS-RERA?

2.Do I have all my payment receipts?

3.Have I signed the agreement with the builder?

4.If I have signed what does the agreement say about cancellation?

5.Do I have a reason to cancel?

6.Have I written a notice with all the details?

7.Will I send my notice by registered post?

8.If the builder is late do I have proof of the possession date?

9.If the builder wants to deduct money is it allowed in the agreement?

10.If I do not get my refund will I file a complaint with TS-RERA?

An individual’s  rights under RERA are clear. What happens depends on how you keep track of everything from the start.

FAQs

Q1: Can I cancel my booking before I sign the agreement?

Yes. I can cancel before I sign the agreement. The builder might keep some money. They cannot keep all of it.

Q2: How much can the builder deduct from my booking amount?

The builder can only deduct what is in the agreement. If they try to keep more I can challenge them.

Q3: How long does the builder have to refund my money?

The builder has to refund my money within 45 days. If they are late I get interest on my money.

Q4: What if the builder cancels my booking?

If the builder cancels without a reason I get all my money back with interest. I can also ask for compensation.

Q5: How do I file a complaint, with TS-RERA?

I go to the TS-RERA website register and file a complaint. I attach all my documents. Pay a small fee. The person who decides these cases will schedule a hearing.