Cancelled Projects: What Happens to Buyers' Money

A large number of projects launched during the boom years will not be built. Some have been formally cancelled, others are on indefinite hold. For buyers who paid deposits or instalments, cancellation raises the most important question of all: what happens to their money?

How cancellations are being handled

For projects registered with RERA, the regulator oversees the process of cancellation and the handling of buyers' funds. Where escrow accounts exist, funds remaining in them may be returned to buyers. Outcomes vary depending on the project, the developer and the stage reached.

What buyers can recover

• Funds in escrow: may be returned, depending on the project's circumstances.
• Alternative units: some developers offer transfers to other projects.
• Legal claims: where funds are not available, buyers may pursue claims.

The importance of registration

Projects registered under the new rules generally offer more protection than those launched before. Buyers in unregistered projects may face more difficult recovery processes.

Effects on future supply

Cancellations reduce the pipeline of homes that will eventually be delivered. That may help the market absorb the supply that is completed, supporting recovery in the longer term.

Practical advice

• Confirm your project's registration and escrow status with RERA.
• Keep all contracts and receipts.
• Coordinate with other buyers and seek legal advice.
• Consider alternative units only after careful evaluation.

Our view

Cancellations are among the most painful consequences of the crisis, but they are also part of the market's correction. We are helping affected clients understand their options and pursue the best possible outcomes.