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Careers ForU   23 November 2023

Dodging of property transaction

In Hyderabad in  Late October 2022 ,I entered sale agreement for purchase of a plot through GPA holder ( he is plot owner's father)as the plot owner located Overseas . Paid nearly 30 Percent of the value through RTGS and mentioned 60 days time period for registration of the plot .Later it came to my notice  that   a person X had claim on the total layout where the plot was located . The dispute arose between X and another  person who developed the layout .The person X filed OS Civil Suit in 2013 making the person who developed the layout as Defendant 1. Hence the total layout was placed in prohibited list in the sub registrar office  .But this person X will negotiate for money  with the prospective plot buyers and shall agree to  file a compromise memo  and once compromise  memo issued by Court  , the sub registrar is  able to do the registration .

The owner  didnot let me know about this issue in October 2022 while entering the agreement ,dragged the issue till May 2023 ,took another 25 Lakhs through RTGS promising that he would negotiate with X and get the compromise decree from the court .Until now he doesn't .I can surely seek legal recourse but I donot want for the obvious reason of delays during the case trial .

I would rather sell the plot and retrieve my heldup amounts .My question is what could be the ideal scenario for me to sell the plot to any  prospective buyer ,ofcourse I would be telling them about the claims of  person X.

If some one is interested to buy , what kind of document or agreement  can we execute ? 

Does an MOU serve the purpose ? Any other way out ?

Please advise 

Thankyou 

Pravin



Learning

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     23 November 2023

You have not purchased the property yet hence you cannot sell the property to anyone without a title document or even title or interest in the property.

In fact your seller's title itself is yet to be confirmed because the civil dispute is going on in the court of law and this entire layout plots have been brought under prohibited list.

The original owner cannot get a compromise decree for a particular property or plot if he had filed a suit for the entire property, because he has filed the suit against the developer towards the entire property and not a single plot.

The court will not allow  his compromise memo for a single plot because the suit is for the entire layout.

Your vendor is cheating you by  telling that he will soon get the compromise decree and will sell the property.

In fact your vendor  is uncertain about the fate of his plot hence he is hurrying to collect money from the prospective buyer without any sign of getting the property registered in favor of the buyer.

You better cancel the sale agreement and demand the vendor to return the booking/advance amount with interest, failing which you can sue him in civil court for recovery of your money

P. Venu (Advocate)     30 November 2023

Admittedly, the property was not free of encumbrances. You have option to cancel the agreement and seek return of the investment with interest.


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