Cancellations are uncomfortable. A clear policy turns them into procedure.
Write it down
State what is refundable, what is deducted and by when. Share it before booking, not after.
Approvals and calculation
Propto handles cancellation approvals and works out refunds from your sales policy, so numbers follow rules.
Release the unit
Once approved, release the unit so it returns to inventory. Keep the audit trail with the booking.
Why a written policy matters
Cancellations are uncomfortable for everyone. A buyer may face a family emergency, a loan rejection or simply change their mind. Without a written policy, each case becomes a negotiation, decisions vary by who handles them and disputes become likely.
A clear policy, shared before booking, sets expectations for both sides and makes cancellations fair, consistent and faster to resolve.
What the policy should cover
Cover the grounds for cancellation, the notice required, how any deduction is calculated, which amounts are refundable, the timeline for refunds and what happens to commissions already accrued by partners. State whether different rules apply at different stages, such as before and after agreement.
Make sure the policy is consistent with the agreements buyers sign and with applicable law. Have it reviewed by legal counsel.
Sharing the policy before booking
Explain the cancellation terms before accepting a token, and include them in the booking documents. Buyers who understand the terms in advance are less likely to feel treated unfairly later.
Train salespeople to explain the policy accurately and without pressure. Hiding unfavourable terms creates disputes that cost far more than the booking was worth.
Requesting and approving cancellations
Use a formal cancellation request recorded on the booking, with the reason and supporting documents. Route it to the right approvers, such as sales head and accounts, according to your policy. Record each approval with name and date.
A structured request prevents cancellations from being handled informally through calls and messages, which often leads to lost details and inconsistent outcomes.
Calculating refunds
Calculate any refund according to the written policy, using the payments recorded on the booking. Show the calculation clearly to the buyer: amounts paid, deductions with their basis and the refund due. Transparency reduces disputes.
Have a second person check the calculation before it is approved, especially for large amounts.
Releasing the unit
Once a cancellation is approved, release the unit back to inventory through a controlled step, so that status updates for everyone. Until then, the unit should not appear available.
Record the cancellation reason on the booking. Patterns in reasons may reveal issues with pricing, loan support or buyer qualification.
Partners and commissions
If a channel partner was involved, the policy should state what happens to their commission, especially if it was already paid or accrued. Communicate the outcome to the partner promptly.
Clear rules prevent disagreements with partners, who otherwise may feel penalised for a buyer’s decision outside their control.
Communicating with the buyer
Communicate respectfully and promptly throughout. Acknowledge the request, explain the steps and timeline and confirm when the refund is processed. A cancellation handled with dignity can still leave a positive impression and even lead to referrals later.
Keep all communication on the booking record so that anyone handling questions knows the current position.
A worked example
A buyer requests cancellation after a loan is rejected. The executive records the request with the bank’s letter. Accounts calculates the refund under the policy, showing payments and deductions; the sales head approves. The unit is released, the partner is informed about commission and the buyer receives a written summary with the refund timeline.
The whole process takes days rather than weeks, and the buyer later recommends the developer to a friend because the handling felt fair.
Common mistakes
Common mistakes include unwritten policies, terms explained only after the booking, refunds calculated differently by different people and units released before approval. Each damages trust or creates risk.
Another mistake is ignoring the cancellation reason. Those reasons are valuable feedback.
Questions teams often ask
Should the policy differ by project? It can, but keep a consistent structure so buyers and staff understand it easily.
Can exceptions be made? Exceptions should be rare, approved at a senior level and recorded with a reason, so they do not undermine the policy.
In short
Write a clear policy reviewed by counsel, explain it before booking, process cancellations through formal requests and approvals, calculate refunds transparently, release units through a controlled step, inform partners and communicate respectfully throughout.
A policy checklist
Does the policy state the grounds, notice period, deductions, refundable amounts and refund timeline? Is it consistent with the signed agreement and reviewed by counsel? Is it explained before the token is accepted?
Is every cancellation recorded as a formal request with approvals? Are refunds calculated from recorded payments and checked by a second person? Are units released only after approval, and are partners informed promptly? If you can answer yes to each question, your process is in good shape.
Review the policy once a year, or sooner if the law or your agreements change.
Share updates with partners too.
Is refund calculation automatic?
Refunds are worked out from the sales policy during cancellation approval.