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ravi (Consultant)     12 November 2010

Property dispute at the time of Purchase

Dear Sir,

I have recently got involved in a property dispute during purchase of a residential flat and seek advice.

I have entered into an agreement to Purchase/ biana for a residential flat ,on 13th Oct 2010 wherein I paid more than 10 percent as advance/biana through cash.

As per the terms of the agreement, I am to receive the title and peaceful possession of the said flat on or before 29 Nov 2010 after the full payment of the amount.

As per the terms, I have to give the seller of the said flat another installment of agreed amount (x) before 20th of Nov 2010 in cash. Rest of the amount is to be paid in cheque on the date on which the registration of the property will be done.

On 25th of Oct 2010, I paid another portion of agreed amount x in cash and obtained the signature of the sellers father as the seller was himself not available.

However, I have now come to understand that there is a tenant in the said flat that is reluctant to vacate the premises before settled date of final payment in this regard.

I have made several attempts to communicate with the owner/seller over telephone and even tried to fix up a meeting with him. However, none of my attempts has borne any fruits as he has avoided meeting me on one pretext or the other. Under the given circumstances I am constrained to stop further interim payments to the seller unless he assures me that the said flat has been vacated by the tenant. My agreement to sale and purchase with the seller has been made for a vacant property and not a tenanted one.

However, the seller insists that I make the remaining cash payment before the final registration and that there is no provision in the agreement in the sale deed that he has to get the flat vacated beforehand.

I have clarified that the arrangements of the balance payment has already been made by me and I can make the entire payment within one week of the sellers intimation to me that he has got his property vacated by the tenant.

He however is dillydallying and delaying in giving a concrete date for getting the registration done.

As per the terms of the contract, the seller will have to return twice the amount of biana if he does not sell me the flat.

I therefore seek and would be grateful for sound and correct legal advice for my response in this regard.

Also how can I make my case stronger in case I have to go in for litigation
 



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 1 Replies

Belson Devarajan (Lawyer)     12 November 2010

Dear Ravi,

There are few questions you may have to ask. Is there a litigation pending between your seller and his tenant in the court with regards to "Tenancy". Are you willing to drop this property and get back your money from the seller?

Even if your agreement says that the advance must be returned twice the initial sum, court may not agree to that. May be you will get 14%-18% interest over and above the advance paid.

To advice further, I may have to look at your agreement.

Regards,

Belson.


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