TL;DR: The Real Estate (Regulation and Development) Act 2016 (RERA) gives homebuyers legally enforceable rights that simply did not exist before. Builders must register projects, sell on carpet area, keep 70% of funds in a ring-fenced escrow account, and hand possession by the registered date. If they do not, you can withdraw and get a full refund with interest, or stay in and claim interest for every day of the delay. Complaints go before the state RERA authority; appeals go to the Real Estate Appellate Tribunal (REAT). The consumer forum route remains open alongside RERA. This guide covers everything a homebuyer needs to know, from verifying a project to filing a complaint.

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Why RERA was enacted and what changed

Before RERA came into force on 1 May 2017, a homebuyer’s position was structurally weak. Builders marketed projects on the basis of super-built-up area - a figure padded with common passages, lift shafts, and lobby space that the buyer would never use exclusively. Agreements favoured the builder on every material term: possession dates were expressed as “tentative”, penalties for buyer default were steep while penalties for builder default were absent or nominal, and construction funds collected from one project were routinely diverted to another. Buyers who wanted redress had to navigate consumer forums that moved slowly and had no domain expertise in real estate.

RERA changed the underlying power balance. The Act establishes a permanent, specialised regulatory authority in each state and union territory. It mandates disclosure, creates enforceable obligations, and sets statutory remedies that operate independently of what the agreement says. A clause in the builder-buyer agreement that contradicts a RERA right is void to that extent.

The legislative intent is clear from the Statement of Objects and Reasons: to bring transparency and accountability to real estate transactions, to protect homebuyers from fraud and misrepresentation, and to create an efficient grievance redressal mechanism.

Who and what must be registered

Projects that must register

Every real estate project - residential, commercial, or mixed-use - where the land area exceeds 500 square metres or where more than eight apartments are proposed for development must be registered with the state RERA authority before the promoter advertises, markets, books, sells, or offers for sale any apartment, plot, or building in that project. This is not a formality. Advertising an unregistered project is an offence under the Act.

The registration requirement applies to ongoing projects that had not received a completion certificate as on 1 May 2017. Builders of such projects were required to apply for registration within three months of the Act coming into force in the relevant state. Many states have their own timelines because RERA is a concurrent-list subject and the Central Act applies only where a state has not enacted its own legislation.

Agents who must register

Real estate agents - meaning anyone who negotiates or acts on behalf of one person in a real estate transaction with another - must also register separately with the state RERA authority. An unregistered agent cannot facilitate the sale of any RERA-registered project. When you deal with a broker, you are entitled to see their RERA registration number.

What registration means for the buyer

When a promoter registers a project, they file a package of documents with the authority: the sanctioned plan, the layout plan, the structural design and specifications, the proposed schedule of completion, the names and addresses of contractors and architects, and the number of garages and apartments being built. All of this becomes public record on the state RERA portal. The promoter cannot deviate materially from the registered plan without the prior written consent of two-thirds of the allottees.

How to verify a project on the state RERA portal

Every state RERA authority maintains a public portal where registered projects are searchable. Before you pay even a token amount, look up the project.

  1. Go to the RERA authority website for the state where the project is located. Each state has its own portal. Maharashtra’s is MahaRERA, Karnataka’s is RERA Karnataka, Delhi’s is RERA Delhi, and so on. A search engine query for the state name plus “RERA portal” will take you there.
  2. Search for the project by name, registration number, or promoter name. The registration number is usually printed on all project advertisements and the builder’s marketing material. If the builder cannot or will not provide it, that is a serious red flag.
  3. On the project page, check: the registration validity date, the declared possession date, the number of apartments registered versus sold, the escrow account details, the quarterly progress updates, and any complaints or enforcement orders filed against the project.
  4. Cross-check the layout plan and sanctioned plan filed with the authority against what the builder’s sales team is showing you. Discrepancies - extra floors, a park shown on the plan that has since been sold as another building, or a different configuration of units - are worth raising before you sign.

If a project is not on the portal, the builder has either not registered it (a violation) or the project falls below the threshold for mandatory registration. In either case, the RERA statutory remedies discussed below will not be available to you directly, and you will need to rely on consumer law or contract remedies.

The carpet area rule and why it matters to your wallet

RERA mandates that every agreement for sale must specify the apartment size in carpet area and that payment must be based on carpet area. The Act defines carpet area precisely as the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or verandah area, and exclusive open terrace area. The carpet area does not include common areas.

Before RERA, builders sold on super-built-up area, which could be anywhere from 1.2 to 1.5 times the carpet area depending on how generously the builder defined loading. A 1,000 square foot carpet area apartment was marketed and priced as 1,400 or 1,500 square feet. The buyer paid for space they could not use, and they had no statutory benchmark to push back against.

Under RERA, you know exactly what you are buying. If the actual carpet area of the delivered apartment differs from what was registered and agreed, the builder must refund the proportionate excess amount with interest, or reduce the consideration payable if the area is less.

This single provision has material financial consequences. On a project where the per-square-foot price is, say, ₹8,000 and the builder was previously loading 30%, the RERA carpet-area rule represents a genuine saving on each transaction. When you see a project advertisement today that cites “carpet area as per RERA”, that is the Act working as intended.

The 70% escrow rule: how your money is protected

Section 4(2)(l)(D) of the Act requires the promoter to deposit 70% of the amounts realised from allottees in a separate bank account to be used only for construction and land costs of that project. The account must be maintained with a scheduled bank, and withdrawals are permissible only in proportion to certified construction progress, certified by an engineer, an architect, and a chartered accountant.

The escrow rule addresses one of the most damaging pre-RERA practices: fund diversion. Builders who collected crores from buyers in one project routinely parked those funds in another project, a group company, or personal accounts. When the first project ran into trouble, there was nothing left to complete it.

The 70% rule does not mean 70% of the project cost is in the account at all times. It means 70% of what has been collected from buyers in that project goes into that account. The remaining 30% the builder can use freely. And withdrawals from the 70% pool are certified against actual construction progress, so a builder cannot draw down the escrow on the basis of notional progress.

If you ever have reason to believe the escrow is being misused - you can see construction has stalled while the builder is selling units and collecting money - that is a complaint you can take to the RERA authority. The authority has the power to direct the account to be operated under supervision.

What the builder must give you by law

The Act imposes a clear list of obligations on the promoter, most of which are enforceable through the RERA complaints mechanism.

The builder must give you an agreement for sale in the prescribed format before accepting more than 10% of the apartment cost as advance. This is important: many builders ask for a booking amount that is, in effect, a substantial payment, without giving any formal agreement. Under RERA, taking more than 10% without a formal agreement is a violation.

The agreement must specify: the carpet area, the possession date, the rate of interest payable by either party for delay (which must be the same rate for both - the Act forbids one-sided clauses that charge the buyer a higher rate for payment default than the builder pays for possession default), the specifications of the apartment, and the schedule of payments tied to construction milestones.

The builder must provide regular quarterly updates on the RERA portal disclosing construction progress, units booked, and funds in the escrow account.

On handing over possession, the builder must provide a copy of the occupation certificate or completion certificate from the local authority, and provide common area amenities as specified.

Your rights as an allottee

RERA establishes the following rights for allottees:

Information rights. You are entitled to all information relating to the project: the sanctioned plans, the layout plans, the stage-wise schedule of completion, the details of contractors, and the list of approvals obtained and approvals pending. The builder cannot withhold project documentation that the authority has on record.

Right to know about changes. If the promoter wishes to make any addition or alteration to the sanctioned plans affecting your apartment or the common areas, they must obtain written consent from the allottees. For structural additions or alterations to the building as a whole, consent of two-thirds of allottees is required.

Right to withdraw. If the builder defaults on any material obligation - including failure to give possession by the date committed - you are entitled to withdraw from the project and receive a full refund of the amount paid, with interest and compensation.

Right to interest for delay without withdrawing. You are not forced to withdraw. If you wish to stay in the project - perhaps the location is good and the building is nearly complete - you can continue and claim interest from the builder for every month of delay.

Right to claim compensation. Beyond interest, you are entitled to claim compensation for any loss caused by the builder’s false statement or misrepresentation, defects in title, or failure to provide services.

Delayed possession: refund or interest, you choose

This is the most commonly litigated issue under RERA, and the Act’s position is relatively clear: the allottee has a choice.

Option 1: Withdraw and get a full refund

If the builder fails to complete the project or is unable to give possession by the date agreed, you may give notice and withdraw from the project. On withdrawal, the builder must refund the entire amount paid by you with interest calculated at the prescribed rate, within 45 days of receiving such a request.

The interest is calculated from the date the amounts were paid until actual repayment. This is meaningful: if you paid ₹40 lakh five years ago and are getting it back now, you are entitled to interest for five years. The prescribed rate of interest is set by the relevant state government’s rules under RERA. Most states have prescribed rates in the range of the State Bank of India’s marginal cost of lending rate plus a margin, though you must check the specific rules for the state in question.

Option 2: Continue and claim interest for the period of delay

If you do not want to withdraw - you have already arranged your life around moving into the apartment, or you believe the project will complete soon - you can stay and claim interest for every month of the delay. This interest accrues from the date possession was due until the date possession is actually given.

This is again paid at the prescribed rate under the applicable state rules.

The Supreme Court has considered the position of homebuyers under RERA in a number of cases and has, in general terms, upheld the right of allottees to choose between refund and continued waiting with interest. In cases such as Newtech Promoters and Developers Pvt Ltd v State of UP (2021), the Court examined the scope of the REAT’s appellate jurisdiction and the protection available to homebuyers under RERA, affirming the substantive protections the Act extends. You should look up the specific ratio of any judgment before relying on it, and a retrieval-grounded research tool can help you find the relevant orders and their actual holdings. See how Niyam’s research module works.

An important practical point: the Act provides that the rate of interest chargeable from the builder for delay must be the same as the rate of interest chargeable from the allottee for default in payment. A builder-buyer agreement that provides for a lower interest rate on builder default than on buyer default is void to that extent under RERA.

If your project is significantly delayed, it is also worth reviewing whether the Consumer Protection Act 2019 gives you a concurrent remedy before the consumer forum, and what the comparative advantages are - which the comparison table in the next section addresses.

Structural defects liability

RERA imposes a five-year liability on the promoter for structural defects and defects in workmanship, quality, or provision of services. If any such defect appears within five years from the date of handing over possession, the promoter must rectify it at no additional cost to the allottee, within 30 days. If the promoter fails to do so, the allottee is entitled to receive appropriate compensation.

This is a significant consumer protection. Prior to RERA, a builder could hand over possession and walk away. Any structural issues that emerged later required the buyer to pursue an expensive civil suit against a counterparty who often argued that defects were due to the buyer’s own use.

Under RERA, the obligation is statutory and the timeline for repair is fixed. Structural defects that become apparent within five years are presumed to be the builder’s responsibility. The builder must prove they were caused by the allottee’s actions if they want to escape liability.

How to file a RERA complaint step by step

Filing a RERA complaint is significantly less complex than civil litigation, though each state’s authority has its own portal and procedure. The general process across states is as follows.

Step 1: Identify your forum. Complaints against a promoter or allottee (including builder-versus-buyer complaints) go before the RERA authority or the Adjudicating Officer, depending on the relief claimed. The RERA authority handles complaints about obligations under the Act. The Adjudicating Officer handles claims for compensation.

Step 2: Gather documents. You will need: the builder-buyer agreement or allotment letter, proof of payments made (bank statements, receipts), all correspondence with the builder, the possession letter if any, any demand letters or notices you have already sent, and the RERA registration certificate of the project (downloadable from the portal).

It is a good idea to send a formal legal notice to the builder before filing, stating your grievance and demanding remedy within a specified time. This creates a paper trail, demonstrates that you attempted resolution, and sometimes produces a settlement. See how to draft a legal notice for a step-by-step guide.

Step 3: Register on the state RERA portal. Every state authority has an online complaints module. You register as a complainant, fill in the project details (the RERA registration number of the project makes this straightforward), and describe your grievance.

Step 4: Draft and file the complaint. The complaint should clearly state the facts, the obligation the builder has violated, the relief you are seeking (refund with interest, or interest for delay, or compensation, or all three), and the legal basis under the relevant sections of RERA. The complaint must be accompanied by the supporting documents.

Step 5: Pay the prescribed filing fee. Each state authority prescribes a fee for filing a complaint. The fee is nominal compared to court fees in civil litigation. Most states allow online payment.

Step 6: Attend hearings. The authority issues notices to the other party and schedules hearings. You can appear in person or through an authorised representative. RERA proceedings are supposed to be concluded within 60 days, though in practice timelines vary.

Step 7: Order and enforcement. If the authority rules in your favour, it issues an order directing the promoter to pay the refund with interest, or to hand over possession with interest, or to pay compensation. If the promoter fails to comply with the order, you can apply to the authority for enforcement, and the authority has powers including recovery as arrears of land revenue.

For complex cases - especially where the builder is disputing the possession date, arguing force majeure, or raising counterclaims - it is worth having a lawyer assist you. You should also research the orders the RERA authority in your state has passed in similar delayed-possession cases, as the rulings can reveal what evidence the authority finds persuasive. The Niyam research module is built for exactly this kind of grounded, judgment-backed research, drawing on over 72,000 Indian judgments and orders.

Appeals to the Real Estate Appellate Tribunal

Any person aggrieved by a direction or order of the RERA authority or the Adjudicating Officer may appeal to the Real Estate Appellate Tribunal (REAT) within 60 days of the order. The REAT consists of a chairperson (a retired High Court judge or a person of equivalent qualification) and at least two members with experience in law, administration, or real estate.

The REAT conducts proceedings in a more formal adversarial manner than the authority level. If you have already had a favourable order at the authority level and the builder has appealed, you will need legal representation before the REAT. Equally, if the authority dismissed your complaint and you wish to appeal, you have 60 days to do so.

The REAT’s order can itself be challenged in the High Court, though the grounds for such a challenge are typically jurisdictional or involve a substantial question of law. For most homebuyer disputes, the REAT is the practical final forum.

An important point: if the limitation period for filing an appeal or a complaint is close to expiring, you should be aware of the principles around condonation of delay - the procedure by which a tribunal or court can excuse a delay in filing if sufficient cause is shown. This matters in RERA proceedings where buyers may have spent months in informal negotiations before deciding to file formally.

RERA vs consumer forum: which forum suits your case

Homebuyers frequently ask which forum to use - the RERA authority or the consumer forum under the Consumer Protection Act 2019. The short answer is that the two remedies are generally concurrent. You can choose, and in some circumstances you can pursue both simultaneously (though you cannot claim double compensation for the same loss).

Here is how the two forums compare for a typical delayed-possession complaint:

FactorRERA authorityConsumer forum (District / State / National)
Jurisdiction triggerProject must be RERA-registeredBuyer is a “consumer” under the 2019 Act; project need not be RERA-registered
Subject matterViolations of RERA obligationsDeficiency in service or unfair trade practice
Filing feeNominal (varies by state, typically a few hundred to a few thousand rupees)Based on claim value; higher for large claims
Designed timeline60 days for conclusion3 months (in practice, often longer)
CompensationYes - for loss caused by promoter defaultYes - including mental agony and litigation costs
Interest on delayed refundStatutory rate prescribed under RERA rulesCourt-determined, often SBI PLR-based
Structural defect claimsYes - 5-year liability windowYes - as deficiency in service
AppealREAT within 60 daysState Commission / National Commission / Supreme Court
Promoter can countersue buyerPossible cross-complaintGenerally not available in consumer forum
Concurrent jurisdictionYes, with consumer forum (no double compensation)Yes, with RERA (no double compensation)
Best suited forProjects registered under RERA; seeking interest under RERA; enforcement through RERA machineryProjects below RERA threshold; seeking compensation for mental agony; preferring consumer forum’s established jurisprudence

The conventional wisdom is that RERA is faster for cases involving clearly registered projects where the builder has plainly missed the possession date. The consumer forum may be preferable where the project predates RERA registration requirements, where the builder is contesting RERA jurisdiction, or where you want to claim compensation for mental agony and harassment (which consumer forums tend to award more routinely). Several High Courts have also affirmed that filing before the RERA authority does not bar a parallel consumer complaint.

You can read more about consumer rights remedies in the guide on the Consumer Protection Act 2019. For civil litigation strategy in property disputes, including cases that have moved beyond the RERA or consumer forum stage, the practice area page covers the landscape in more detail.

Frequently asked questions

Can I file a RERA complaint if my project was launched before RERA came into force?

Yes, if the project had not received a completion certificate as of 1 May 2017 and the builder was required to register it under the state’s RERA implementation. Many of the most contested RERA cases involve pre-2017 projects. The builder’s obligation to register those projects was mandatory, and if they failed to do so, that itself is a violation. If they did register, all RERA rights apply to you regardless of when you booked.

What if the builder says the delay is due to force majeure or Covid?

Builders frequently invoke force majeure - including the Covid-19 pandemic - as a justification for delay. Many state RERA authorities issued administrative extensions to project completion dates during and after the pandemic. Whether such an extension applies to your project, and whether it fully covers the delay you have suffered, is a factual question you need to check against your specific project’s registered timeline on the RERA portal. Even where an extension was granted, you may be entitled to interest for the period of delay before the extension was given, or after any extension period expired.

What is the minimum amount I can claim before the RERA authority?

The Act does not prescribe a minimum claim amount. Even small amounts can be taken to the RERA authority. However, the practical calculus is whether the time and energy of the complaint process is worth it relative to what you might recover. For token amounts you may find the consumer forum’s mediation or simple notice more efficient.

Can I file a RERA complaint without a lawyer?

Yes. The RERA complaints process is designed to be accessible without legal representation. Many buyers file and argue their own complaints. That said, for larger amounts at stake, a complex factual record, or where the builder has engaged lawyers, having legal assistance is worth considering.

What happens if the builder does not pay after the RERA authority passes an order in my favour?

The authority’s order is enforceable as an arrear of land revenue. This is a powerful mechanism: the state’s revenue machinery can attach and sell the builder’s property to recover the amount. You can apply to the authority for enforcement, and the authority can also recommend prosecution of the promoter for non-compliance.

Can the builder cancel my booking if I file a RERA complaint?

No. Filing a RERA complaint is an exercise of a statutory right. Retaliatory cancellation of the allotment would itself be a violation that you can bring before the authority. If your allotment agreement purports to give the builder the right to cancel on filing of a complaint, that clause is void to the extent it conflicts with RERA rights.

Is RERA applicable in all states?

RERA is a central legislation applicable across India. However, states and union territories were required to notify their own rules and operationalise their own RERA authorities. Most major states have done so. A few smaller union territories took longer. You should check whether the state where your project is located has a functioning RERA authority and portal, which almost all states now do.

My project has multiple wings registered under different RERA numbers. Does that affect my rights?

No, not materially. Each registration is a separate project for regulatory purposes. Your rights run against the promoter of the specific registered project (or phase) in which your unit falls. Check that your allotment letter or agreement cites the correct RERA registration number, and confirm that the registered possession date matches what you were verbally told.

What is the time limit for filing a RERA complaint?

The Act itself does not specify a limitation period for filing a complaint before the RERA authority. However, some state rules have introduced limitations. Even where no specific period is prescribed, undue delay in filing can complicate matters - the sooner you file after a grievance arises, the cleaner your case. If there has been significant delay on your part, be aware of the principles of condonation discussed here.

Can I claim compensation for mental agony before the RERA authority?

The RERA authority and Adjudicating Officer can award compensation for actual losses caused by the promoter’s default. Compensation for mental agony as such is more traditionally within the consumer forum’s remit, and consumer courts award such damages more regularly. If mental agony compensation is important to your case, filing before the consumer forum (or filing in both forums for different heads of relief) is worth considering.

What documents do I need to prove the possession date that was agreed?

The primary document is the builder-buyer agreement or the allotment letter, which should specify the agreed possession date. If the agreement says possession is “expected by” a date rather than “committed by” a date, the builder may attempt to use that language to argue it was not a binding commitment. RERA looks past tentative language: the date registered with the RERA authority by the promoter is the baseline. If the registered date and the agreement date differ, that is worth raising with a lawyer before you file.

Can a housing society (RWA) file a collective RERA complaint?

Yes. Multiple allottees in the same project can file a joint complaint or the residents’ welfare association can file a representative complaint on behalf of members. This is often more efficient than individual filings and can aggregate the claim into a single, more visible proceeding.

What if my builder is in insolvency proceedings under the IBC?

This is a materially different situation. If the builder is under insolvency proceedings before the National Company Law Tribunal (NCLT), you are a financial creditor and your claim must be filed as part of the insolvency resolution process, not before the RERA authority. The RERA and insolvency regimes interact in complex ways; the Supreme Court and various High Courts have issued rulings on this intersection, and you will need legal advice specific to your situation.

Does RERA apply to commercial office space purchases?

Yes. RERA covers commercial real estate as well as residential. If you have purchased or agreed to purchase a commercial office, shop, or any other commercial unit in a RERA-registered project, the same rights and remedies are available to you.

What if the builder unilaterally changes the floor plan or the flat configuration after I have booked?

This is a violation of the builder’s obligations under RERA. Minor changes are permissible in certain circumstances, but any addition or alteration to the sanctioned plans and specifications of an apartment requires your prior written consent. Changes to the common areas or the building as a whole require the consent of two-thirds of allottees. If the builder has made changes without consent, you can raise a complaint before the RERA authority and also use it as grounds to withdraw and seek a refund with interest.

Can I use the RERA interest calculator to estimate what I am owed?

Yes, and it is a useful first step before deciding whether to file. Use the Niyam interest calculator to input the amount paid, the dates of payment, and the applicable rate under your state’s RERA rules, and get an estimate of the interest the builder owes you. This also helps you decide whether to seek a refund (interest on the full amount from date of payment) or continued possession (interest for the delay period only).

If I want to research RERA orders before filing, how do I find relevant cases?

The RERA portals in some states publish orders, but coverage is inconsistent and search functionality is limited. For researched, grounded results drawn from RERA orders and court judgments interpreting RERA, Niyam’s research module is built for this purpose. You can run a query on delayed possession, carpet area disputes, or escrow violations and receive answers grounded in real orders with citations, rather than generic advice.

What is the difference between the RERA authority and the Adjudicating Officer?

The RERA authority handles complaints about violations of the Act and the builder’s obligations. It can direct the promoter to comply, impose penalties, and revoke registrations. The Adjudicating Officer is a separate officer designated under the Act whose function is to adjudicate claims for compensation - that is, to quantify and award financial compensation for losses caused by the promoter. In practice, in many states the two functions are exercised through the same body or the same set of proceedings, but formally they are distinct.

Can the builder’s lender (bank) claim over my apartment if the builder defaults on its construction loan?

This is a serious risk that the RERA framework addresses partially. The Act requires that the project land and the apartments be kept separate from the promoter’s own liabilities, and that no mortgage or encumbrance affecting the project be created without the prior written consent of the allottees. However, in practice, many projects have pre-existing mortgages or the bank’s rights in insolvency are contested. Before buying in any project, check whether there is a mortgage on the land on the RERA portal and in property registry records, and consider whether you need a lawyer to review the title documents. See also the property and real estate practice area for guidance on title due diligence.

Do I need to have paid the full amount before filing a RERA complaint?

No. The Act does not require you to have completed all payments before you can file. If you have made partial payments and the builder has failed to deliver what was promised, your claim is based on the amounts actually paid and the obligations that have been breached. Withholding future instalments in the face of a builder default is also a strategy worth discussing with a lawyer, as the Act allows the allottee to withhold payments proportionate to unfulfilled obligations.

Research your RERA claim before you file

One of the most effective things you can do before filing a RERA complaint is to understand how the authority in your state has decided similar cases. RERA authorities across India have passed thousands of orders on delayed possession, carpet area discrepancies, escrow violations, and structural defects. The reasoning and the amounts awarded vary, and knowing the pattern of rulings in your state can shape how you frame your complaint and what relief you realistically expect.

Niyam is built for exactly this kind of legal research in India. The research module retrieves and analyses relevant orders and judgments from a corpus of over 72,000 Indian legal decisions, grounded in what was actually decided rather than generated from general knowledge. Every answer is cited to a real order or judgment, so you can open the source and verify. You can research questions like “what interest rate have Maharashtra RERA orders awarded on refund claims” or “what facts have RERA authorities treated as evidence of possession date default” and get answers backed by real decisions.

The Niyam interest calculator lets you estimate what the builder owes you before you commit to filing. And if you need to draft a legal notice to the builder before you escalate to the RERA authority - which is often a productive first step - the drafting module can help you structure it correctly.

For claims that have moved to civil litigation or where you are considering simultaneous proceedings under the Consumer Protection Act 2019, Niyam’s research covers that landscape as well.

When you are ready to try it: Start for ₹100 - 200 credits to start, cancel anytime. Questions: [email protected].