The Flat Cancellation Letter Due To Non Payment is a crucial document in Indian real estate transactions when a buyer defaults on their payment obligations for a property purchase. This document is used when all reasonable attempts to secure payment have failed and the seller/developer decides to terminate the booking/agreement. It must comply with the Real Estate (Regulation and Development) Act, 2016 (RERA) and state-specific regulations, which typically require proper notice and documentation of payment defaults. The letter serves as formal notice of cancellation, documents the payment default history, references previous communications, and outlines the consequences including any applicable refunds or forfeitures. It's essential for protecting the seller's interests while ensuring compliance with Indian consumer protection and real estate laws.
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1. Letter Header: Complete contact information of sender and recipient, date, and subject line
2. Reference Details: Booking/agreement number, flat details, and date of original purchase agreement
3. Payment Default Statement: Clear statement of payment defaults including amounts and due dates
4. Prior Communications: Reference to previous payment reminders and notices sent
5. Cancellation Declaration: Formal statement of booking cancellation citing relevant contract clauses
6. Legal Basis: Reference to relevant provisions of agreement and applicable laws (RERA etc.)
7. Consequences: Details of forfeiture or refund as per agreement terms
8. Next Steps: Required actions from recipient and timeline
9. Closing: Professional closing with signature block and company details
1. Alternative Resolution Options: Include when willing to offer payment plan or settlement options
2. Refund Calculation: Include when partial refund is applicable as per agreement terms
3. Legal Proceedings Warning: Include when planning to initiate legal action for recovery
4. Return of Documents: Include when original documents need to be returned
5. Without Prejudice: Include when letter is part of ongoing negotiations
1. Payment History: Detailed statement of all payments made and missed
2. Copy of Original Agreement: Copy of booking agreement or purchase agreement
3. Previous Notices: Copies of all previous payment reminders and notices
4. RERA Compliance Certificate: Document showing compliance with RERA requirements for cancellation
5. Calculation Statement: Detailed calculation of forfeiture amount or refund if applicable
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