Cancellation of sale agreement
Posted 4 months ago
We had made a sale agreement for purchasing a property (built house) on March 27,2023 ,In the sale agreement there is a clause "if any legal issues found, seller is bound to return the advance amount" we had given an advance amount of rs.37,70,000/- , also had paid TDS, just two three days before registration, we found some legal issues( revenue , B khata) with the property and we dont want to proceed with the purchase. We have informed the seller that we are not proceeding with the property purchase on May 6,2023, still seller is forcing us to purchase the property instead of returning our amount, also he is telling he would need atleast 3months time to return the amount and he is charging Rs.1,00,000/- as loss incurred to him
Kindly let us know how should we go about this ? What should be our further steps? How do we claim our full refund of advance amount?
If you go to Court it may take years together. To be wise agree for his proposal for deduction of Rs.1,00,000/- and as a security take postdated cheques for your amount.
Before entering into an Agreement to Sale, it becomes the liability on the part of buyer of the property to satisfy himself with the status of property for which he is making an advance, especially before the execution of the agreement.
It is a very common condition apart from others that put the Buyer in litigation/problem at any time either before or after sale. Now in case any suit is filed against the Seller for recovery of money invoking the clause of specific performance, it may take couple of months having no assurance of return getting your registration of deed of sale deferred for an indefinite period.
So, Instead of fighting for the reason, take curative action to resolve the legal issues that surfaced now on the face of the record if the issues are correctable or manageable.
Reach out to an Advocate for proper guidance and steps in the matter.
As the sale agreement already contains the clause for repayment of advance in case of any legal issues, it is easier to get the money back. Contact an advocate and file a money suit. As the breach was on the seller's side, he cannot claim for compensation unless otherwise stated in the agreement.
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