Refund on cancellation of registered Agreement to Sell
Querist :
Anonymous
(Querist) 09 June 2010
This query is : Resolved
Dear Sir,
Based on several feebbacks received on the missing sale deed in the title chain of the property we were intending to purchase, We will have to cancel the deal. Can we get any refund from the registrar's office on cancellation of registered Agreement to Sell, we have spent about 1.5 lacs on the same. Is there any rule of any refund after deducting some charges. And also what will be the procedure for cancellation of the same. Please guide. Thanks.
Harshada Shukl Kulkarni
(Expert) 09 June 2010
Hi !
In my opinion,when a person has stamps in his possession which have been spoiled or rendered unfit or the person does not require to immediately use the said stamps, or the transaction is called off then such a person should deliver the above said stamps to the Collector of Stamps.
In this case, the person is required to make an application within six (6) months from the date of the purchase of stamps. Under section 52 of the Bombay Stamp Act, the person should also submit the affidavit mentioning the reasons for which the Stamps were purchased and the reasons why the refund application is being made.
Hope this will serve your purpose.
Guest
(Expert) 09 June 2010
The stamp duty & registration fee paid can't be claimed-back from the Registration Department.
For cancellation of the sale agreement, both the parties have to present a cancellation deed and get that registered (it is advisable to do so).
If your Agreement has some words to the effect that 'in case if there is a flaw in title, non-production of document, etc., the seller has to compensate the intended-buyer for his expenses incurred towards Sale Agreement, Legal Opinion/Tracing of Title Fees, etc.,' then you can seek the amount from the seller.
After successfully registering the cancellation deed (mention the reason for cancelling the same), try to seek this amount from the seller.
