Advance given
RC Gayatri
(Querist) 29 January 2013
This query is : Resolved
Hi All,
I have given some advance money to purchase a property. And we have a agreement done between me and the seller that I should pay the remaining amount in 20-25 days to get the property registered.
But All of a sudden I have financial crunch and I asked the seller to either extend the deal time to 2-3 months or else cancel the deal and pay back my advance money (cutting some 5000-10,000token money from that).
But the seller is not listening to this.
Can some one suggest me to overcome this ? Can I do anything legally ?
R.K Nanda
(Expert) 29 January 2013
send legal notice to him to extend time to you.
M V Gupta
(Expert) 31 January 2013
If there is a forfeiture clause then the vendor is entitled to forfeit the advance amount to the extent mentioned in it. Also check if he agreement provides for any circumstances in which the agreement can be called off without forfeiture of the advance amount.
prabhakar singh
(Expert) 31 January 2013
All that you ask would be governed by things stipulated in the very agreement.In practice
generally earnest is given in token of commitment and in case of failure the same is treated as vendor's compensation.A 5k or 10k in a such deal is not a huge money to litigate in courts.
