Flat purchase through bank loan

elango parameswaran (Querist) 17 April 2012 This query is : Resolved
Sir
My son entered an agreement with a builder to buy a flat (through bank loan). He has paid some advance. the UDS is not yet registered. the valuer of the bank has rejected the project stating that three is a deviation (more than 40%)of the allowable FSI.Now, we want to cancel the deed. I request advise on the following:-
1)if the builder refuses to return the advance what we have to do
2)whether the builder can execute the same agreement with another buyer for the same flat before it is cancelled by us.
3)what is the procedure for cancelling the agreement

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Devajyoti Barman (Expert) 17 April 2012
The question of all your queries depend upon the terms of the agreement for sale.
The agreement for sale does not create any interest in the property and hence the vendor has no legal hindrance to enter another agreement but before that the existing one should be cancelled.

You need to send one notice asking for return of earnest money wherein you have to mention about canceling the agreement.

ajay sethi (Expert) 17 April 2012
the agreement enterd into with builder must have contained clauses mentioining that builder has clear and market able title to pproperty .that permission has been obatined for construction from muncipal coproration ,

inform builder that your laon has been rejected . send him notice requesting him to refund your advance . contact a local lawyer

prabhakar singh (Expert) 18 April 2012
Get in personal touch of a lawyer.Send notice of demand and lodge consumer complaint against him claiming earnest and compensation.

elango parameswaran (Querist) 18 April 2012
Thank you all gentlemen,
in your busy schedule, you have cared to
reply my querries.thank u all once again.