Resale Property agreement to sale
6 years ago
We are about to purchase resale Property and seller has demanded 8 lac as advance while signing agreement to sale and has mentioned the clause in case bank loan is not processed and buyer is not able to pay the full amount of deal then they have rights to forfeit the entire advance amount which is token + 8 lac
Is this clause justifying?
We were planning to wait untill loan approval and then sign the ATS
Please suggest
Thanks
Adv. Sarika Khude
Responded 3 years ago
A.do not buy a property from such people
Helpful
Helpful
Share
Deepak Yashwantrao Bade
Responded 5 years ago
A.dear client do not buy a property from such people who have these kinds of clauses in the agreement.you can request them to repeal these type of clauses.or simply avoide contract.
Helpful
Helpful
Share
A.FORFEITURE OF ADVANCE AMOUNT LEGAL SC
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7588 OF 2012
[Arising out of SLP (Civil) No. 4605 of 2012]
Satish Batra .. Appellant Versus Sudhir Rawal .. Respondent
J U D G M E N T K. S. Radhakrishnan, J. 1.
1.Leave granted.
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7588 OF 2012
[Arising out of SLP (Civil) No. 4605 of 2012]
Satish Batra .. Appellant Versus Sudhir Rawal .. Respondent
J U D G M E N T K. S. Radhakrishnan, J. 1.
1.Leave granted.
Helpful
Helpful
Share
A.My honest suggestion is that do not buy a property from such people who have these kinds of clauses in the agreement. Who on earth says that if the transaction does not happen then all the advance money will be forfeited? The seller or his side of broker and people are over smart and trying to trap you. Suppose by spending a portion of money he gets the loan application rejected then he gets free money worth 8 lacs minus whatever is spent on getting the loan rejected.
Ask him to change the clause and put a penalty of maximum 10% of the advance amount.
Ask him to change the clause and put a penalty of maximum 10% of the advance amount.
Helpful
Helpful
Share
Read Related Answers
Commissioner sir force me to do risky work of demolition as contractor
Dear Client,
In the prevailing situation, you can escalate your grievance before the higher authorities explaining your constraint or inability to comply with the order of demolition of the building,...
Delay payment
Dear Sir,
Better approach Police and get an undated cheque for the said amount with interest etc. If you go to the court on agreement it will be a civil case as such you have to spend lot of money and...
Termination of contract
Dear client,
Please verify with the terms and conditions of the contract verify with if the project has been suspended temporarily or permanently. you can send a legal notice to the company for breac...
West Bengal Tender for Fortified Rice
Dear sir
You may challenge negative order either before higher authorities or by approaching civil court or High court.
Breech of Employment Agreement
Dear Client,
Here are the responses to your query no.1) What are some legal actions that they can raise? Ans: The company can file a civil suit against you for damages caused by a breach of its policy...
Read Blogs on Contracts and Agreements
Contracts and Agreements Lawyers
Find Lawyers by Location
