Real Estate Flat Token Booking Cancellation & Refund Rules in India
One of the most frequent disputes between homebuyers and real estate builders in India arises when a buyer pays an initial booking token (typically ₹21,000 to ₹2,00,000) and later requests a cancellation due to home loan rejection, personal financial difficulty, or change of mind.
Legal Status of Booking Tokens Under RERA
| Booking Stage | Refundability Status | Standard Industry Practice |
|---|---|---|
| Pre-Launch EOI (Expression of Interest) | 100% Refundable | Full refund processed within 14–30 business days if buyer does not select flat at launch. |
| Confirmed Unit Allotment (Before AFS Signing) | Partially Refundable / Nominal Fee Deduction | Builders deduct ₹10,000 to 1% of agreement value towards administrative processing. |
| Registered Agreement for Sale (AFS Executed) | Subject to Forfeiture Clause | RERA allows forfeiture of earn-money deposit (max 10% of total unit cost) after proper notice. |
How Builders Automate Cancellation & Refund Tracking
Using TechConnectHub CRM, builders log digital booking receipts, automate cancellation approval workflows, and maintain transparent RERA audit trails for every transaction.