binu (Manager) 23 May 2013

Property sale agreement

Sir ,

I have recently entererd into a property agreement.Here iam the buyer.I have paid 50k as advance against the property and agreed to pay the remaining money with in 10 days.

But i was not able to aggange the money, we have made an agreement in 100 RS stamp paper, signed by both buyer and seller.He made the agreement in his house and both of us signed

Now i have asked my advance money , the seller is telling he can't give that, its the compensation for the damage i made, is there any way that legally i can get the money

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2 Replies

Hemang (Advocate) 24 May 2013

The agreement to sale entered into by and between the parties would not be admissible in evidence, more so, because the same is never registered as contemplated under the Indian Registration Act. As far as the refund is concerned, it is very important to scrutinise and consider as to what were the terms and conditions in case the buyer fails to purchase the property, or make the full payment. Some penalty or damages to the tune of 10 per cent is generally reasonable, nut it has got to be clarified. Is there any clause about forfeiture of money paid towards advance / earnest money? If, there is no provision made, forget the same as the earnest money is never refundable.

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Advocate Ravinder (Advocate/Attorney) 27 May 2013

To my knowledge, for Agreement of sale registration is not necessary. While going for specific performance suit in the court, there is an exemption for Agreement of sale relating to immovable property.

The remaining Hemang sir had given the answer eloborately and intelligently even though he do not know the contents of the Agreement of sale.