Flat booking cancellation and refund in Andhra Pradesh: the 10% booking amount rule under AP-RERA
Short answer: AP-RERA's FAQ says a builder in Andhra Pradesh cannot take more than 10% of the flat or plot price as an advance or booking amount before a registered agreement for sale (FAQ Q66 and Q85, RERA Act section 13(1)). When a buyer cancels, the FAQ points to the termination terms in the Form of Agreement for Sale (Annexure-A) of the AP RERA Rules, 2017 (Q86). If the builder is at fault, for example possession is late, the RERA Act gives you your money back with interest (section 18). We could not open the AP Rules today, so the exact AP forfeiture wording is marked to verify.
Who this is for: buyers in Visakhapatnam, Vijayawada, Guntur, Tirupati and across Andhra Pradesh who paid a booking amount and want to cancel, or whose builder is slow to refund.
What AP-RERA and the Act say
| Issue | Source and text | Status |
|---|---|---|
| Booking amount allowed | AP-RERA FAQ Q66: "the promoter cannot accept a sum more than 10 percent of the apartment/plot cost as an advance payment/ application fees." Q85: s.13(1) "prohibits the promoter from taking more than 10% of the cost of apartment without entering into a written agreement for sale, duly registered." | FAQ copy saved 15 Oct 2026 (the AP-RERA site did not load on 26 Oct) |
| Cancellation terms | FAQ Q86: "Provision of termination of agreement is covered in the Form of Agreement for Sale (Annexure -A) attached to Andhra Pradesh Real Estate (Regulation and Development) Rules, 2017." | Same copy |
| How much the builder may keep if you cancel | We could not read the AP Annexure-A. In the Telangana model agreement, which uses the same central model, clause 7.5 lets the promoter forfeit the booking amount and return the balance within three months or on resale, whichever is later. | To verify for AP (Annexure-A text) |
| Builder at fault | RERA Act s.18(1): if the promoter fails to complete or give possession as agreed and you withdraw, it must return the amount received with interest and compensation. s.19(4) gives the allottee the same right to a refund with interest. | Read (text of the Act read from our saved copy of 21 Oct 2026; the hosting page did not load on 26 Oct) |
| Builder cancels your allotment | s.11(5): only in terms of the agreement for sale. A unilateral cancellation without sufficient cause can be taken to the Authority. | Read (same copy) |
| Interest rate in AP | Prescribed by the AP Rules. We did not read the current AP rule. | To verify |
Practical plan for an AP booking you want to cancel
- Collect your papers: booking form, every receipt, and the agreement for sale if one was registered. Note the booking amount it states.
- Check the 10% line. If more than 10% was taken without a registered agreement, note it. FAQ Q85 says that is prohibited. Our AP agreement of sale checklist explains what should have been signed.
- Decide whose fault it is. Builder delay or plan changes point to s.18 (full refund with interest). A change of mind points to the forfeiture clause in your agreement.
- Write to the builder. List the payments, ask for the refund amount, how it was calculated and the payment date, and keep proof of delivery.
- Escalate if needed. For a registered project, AP-RERA takes complaints. See our AP-RERA complaint guide. For a stamp duty refund on a cancelled sale, see our AP stamp refund page.
Common mistake: accepting a verbal "we will refund after resale" with no date. Even the model clause allows "whichever is later", which can mean a long wait. Ask for the refund date in writing, and before you pay a booking amount, check the project on AP-RERA with our project check guide.
Related guides
- Can a builder charge for car parking?
- Carpet area in property ads under RERA
- Carpet area and loading calculator (free tool)
Buying in the other state? See the Telangana guide to booking cancellation.
Not legal advice. This page summarises the AP-RERA FAQ (saved 15 Oct 2026) and the RERA Act, 2016. Points we could not confirm say "to verify". Your own agreement for sale, and the Authority or a court, decide each case. Speak to a property lawyer before you pay, sign or cancel.
A free sample from our Andhra Pradesh property do-it-yourself pack: which documents to collect and which AP-RERA and IGRS checks to run, in order, before the booking amount leaves your account.
Get it free (instant download)FAQ
What is the maximum booking amount in Andhra Pradesh?
AP-RERA FAQ Q66 and Q85: no more than 10% of the cost before a registered agreement for sale.
If I cancel, how much will the builder refund in AP?
FAQ Q86 points to the termination clause in the AP Form of Agreement for Sale (Annexure-A). The exact AP wording is to verify; read your own agreement.
The builder is late. Can I get all my money back?
RERA Act s.18: if you withdraw because the promoter failed to give possession as agreed, the amount is returned with interest and compensation.
Can the builder cancel my booking on its own?
Only in terms of the agreement for sale (s.11(5)). A unilateral cancellation without sufficient cause can be taken to AP-RERA.
Official sources
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.