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bharath kumar (b.tech)     03 February 2015

Agreement cancellation

Hi sir,
I am from Andhra Pradesh.Recently we saw a property which we want to buy and that property costs 33,40,000/- and to buy that first we are asked to make agreement between us and the seller.So that we have agreed to pay 4,00,000/- as advance payment at the time of agreement and we payed them 4,00,000/- as we have agreed and next we have moved to get the remaining amount from bank loan so that it covers up total money of the property cost and when we approached many banks they said they cannot give full amount  that we are required and we have lacked in money and decided not to buy the property and then we said to seller that we didnt get the expected amount from the bank so we don't have enough money to buy your property and want the given advanced 4,00,000/- amount back.The seller said that he has used the money that we have given as an advance at the time of agreement to buy another property and he forces us to buy the property and says he will not give money back even when we said to him that we don't have that much money and we didn't get expected amount from bank loan.

The agreement is not registered and written on a stamp paper.  Registration of the property is due.

What should i do?
What is the solution?

Help me please. I hope i get the solution from people



Learning

 11 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     03 February 2015

In Andhra Pradesh, the Sale Agreement is a compulsory registerable document.  What are the terms and conditions in the un-registered sale agreement?  However consult a local lawyer and file case for recovery of the money.  it is for information only.

bharath kumar (b.tech)     03 February 2015

what should i do now sir? anyone help me

T. Kalaiselvan, Advocate (Advocate)     04 February 2015

In the given situation, you may consult a local lawyer along with the unregistered sale agreement and issue a legal notice demanding the advance amount terminating the agreement  between you as per the contract terms and conditions.

bharath kumar (b.tech)     05 February 2015

Mr.kalaiselvan Here the buyer is asking 1,50,000 from the 4,00,000 advance amount that we payed him. When we approached him to cancel the agreement he said like this when anyone comes forward to buy this property then he will take 1,50,000 from 4,00,000 and then he will give remaining amount. Is there anything we can do abt it? We bought that money for interest and the ones are lost is us as we got that money for interest from outside and he's asking without any reason. Help me how I can move now?

Biswanath Roy (Advocate)     06 February 2015

Agreement relating to sale and purchase is merely a document and that does not require registration.  In case of sale and purchase oral agreement is also valid agreement according to Sale of Goods Act. In any case whatsoever advance money is not refundable unless in the terms of the agreement it is categorically provided that if the intending buyer does not want to purchase the property and claim refund of advance money at any time from the seller then the seller shall be liable to return the same. From the given facts it appears that the Vendor is not legally liable to return the advance money to Vendee so it will be wise to accept part refund of the advance money from the vendor and to take a written undertaking from the vendor for further payment of the balance amount by installment. or at the time of selling the property to any other buyer. 

bharath kumar (b.tech)     07 February 2015

Sir,

how can i get back my advance money 4,00,000 back?
the seller is saying he will take 1,00,000 from the advance money and will give remaining when another buyer buys the property?
y is he not giving total amount?
why we should bare such huge amount without having anything?
help me how to tackle him.

T. Kalaiselvan, Advocate (Advocate)     07 February 2015

This seems to be a decision made in haste.  You should  have taken an opinion from a lawyer before going for purchase or entering into a sale agreement or atleast before giving such a huge amount.  Just to avoid the meagre expense of hardly 2,000/- or little more in the form of legal opinion fee, you have jumped into pit with eyes wide open, atleast now you take the help of a lawyer to tackle the issue.

bharath kumar (b.tech)     07 February 2015

k sir what should i do now?

Biswanath Roy (Advocate)     07 February 2015

Collect an undertaking from the vendor in writing upon a non-judicial stamp paper of Rs.10/- that after deducting Rs.1,00,000/- from the Advance money of Rs.4,00,000/- he will pay the balance Rs.3,00,000/- at the time of selling the property to another buyer.

bharath kumar (b.tech)     07 February 2015

is it legal for him to take that 1,00,000 or is it his right in law to take that money from us?

Biswanath Roy (Advocate)     07 February 2015

From your given facts it transpires that the seller cannot be called to refund your advance money if you do not purchase the property i.e., it will be forfeited.  Under such a position it will be better to take an undertaking from the seller that he has agreed to repay the amount from the sale proceeds of the property. After such new agreement further steps can be adviced upon your request..


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