Recently we identified a property to buy and also paid some amount to property owner.As usual 20% down payment and 80% loan was required. We were banking upon some borrowing from my friend (which he had promised earlier), which did not materialize on the 11th hour because of some sudden emergency at his end.As a result now we don't have enough money to raise the down payment and we can't avail loan beyond 80% of the amount.We paid the token amount last week and the refusal from friend happened yesterday. We immediately informed the owner about our inability to proceed and that he was free to show the property to other prospective buyers.
Apparently the owner has entered into another transaction to buy some other property for which he was planning to use the proceeds from this property.He was not able to find a buyer to this property for 2 months or so.As a result he is having to to cut a sorry figure to his counterparty for the delay in his payment.
Owner is saying that he turned away some prospective buyers as we had already paid him token money.
Now this owner is threatening us with 'legal notice' for 'harrassment' and 'mental agony'. We have not signed on any document promising to pay him in case we backtracked and all the transaction was done in good faith.Still he is saying that he has all evidence and witnesses.
Now my question is: does the owner have any locus standi at all for serving legal notice and demanding compensation for 'harassment'?I don't have any knowledge of law but common sense tells me that all the owner can do under these circumstances is to sit over the token money we have paid him and worst that can happen is that we will lose our token money.
Can the property owner do anything more than this?
Thanks
Mahendra (Bellary, Karnataka)
