Owner refusing to return advance paid for sale of flat
8 months ago
Hello, I paid 1 lakh rupees through bank transfer as advance to collect documents for verification to purchase a flat.
There was no written agreement made.
I don't want to go ahead with the purchase as there is a physical defect in the flat which owner didn't want to fix.
The owner initially agreed but is now refusing to return the advance saying it was non refundable but nothing of such sort was told to me earlier.
Kindly advise what can be done in this case to get back the amount.
A.Dear Client,
In the absence of any written agreement to sale, when the earnest money is transferred to the owner's account by Bank transfer, then based on that standalone piece of evidence, you can serve a legal notice and file a civil suit for recovery of said money from the owner. Otherwise chance of getting back the said money from the owner appears to be not feasible based on the facts and circumstances of the matter. Reach out to an Advocate for further guidance and steps.
In the absence of any written agreement to sale, when the earnest money is transferred to the owner's account by Bank transfer, then based on that standalone piece of evidence, you can serve a legal notice and file a civil suit for recovery of said money from the owner. Otherwise chance of getting back the said money from the owner appears to be not feasible based on the facts and circumstances of the matter. Reach out to an Advocate for further guidance and steps.
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A.Dear Client,
In this case, since there was no written agreement made regarding the payment of the advance amount, the legal recourse would primarily depend on the understanding and agreements reached orally or through any communication.
In India, the Indian Contract Act, 1872 governs the formation and enforcement of contracts. Section 10 of the Act requires that for a contract to be valid, it must be supported by free consent, lawful consideration, and a lawful object. A contract can be oral or written. While a written contract provides better evidence, an oral contract can also be enforceable depending on the circumstances.
If there were discussions or communications indicating that the advance payment was made as a condition for the purchase of the flat, it can be argued that there was an implied agreement that the advance would be refunded if the transaction did not go through due to a defect in the flat. However, this would require gathering evidence such as emails, messages, or witnesses who can testify to the understanding between you and the owner.
If the owner is refusing to return the advance, you may consider sending a legal notice to the owner, demanding the refund of the advance amount based on the understanding reached. The notice should clearly state the reasons for seeking the refund and demand compliance within a specified timeframe.
If the owner does not respond or refuses to comply with the demand, you may need to approach the appropriate civil court to file a legal suit seeking the recovery of the advance amount.
Thank you.
In this case, since there was no written agreement made regarding the payment of the advance amount, the legal recourse would primarily depend on the understanding and agreements reached orally or through any communication.
In India, the Indian Contract Act, 1872 governs the formation and enforcement of contracts. Section 10 of the Act requires that for a contract to be valid, it must be supported by free consent, lawful consideration, and a lawful object. A contract can be oral or written. While a written contract provides better evidence, an oral contract can also be enforceable depending on the circumstances.
If there were discussions or communications indicating that the advance payment was made as a condition for the purchase of the flat, it can be argued that there was an implied agreement that the advance would be refunded if the transaction did not go through due to a defect in the flat. However, this would require gathering evidence such as emails, messages, or witnesses who can testify to the understanding between you and the owner.
If the owner is refusing to return the advance, you may consider sending a legal notice to the owner, demanding the refund of the advance amount based on the understanding reached. The notice should clearly state the reasons for seeking the refund and demand compliance within a specified timeframe.
If the owner does not respond or refuses to comply with the demand, you may need to approach the appropriate civil court to file a legal suit seeking the recovery of the advance amount.
Thank you.
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