Advance in case of agreement to sell of a plot of land,Flat.

The agreement to sell is a private agreement.

The T&C whatsoever  inserted in agreement are the basis............

you say, "advance amount", clear it for me, what exactly do you mean? whether it is earnest money/token money or is it amount to be paid when you execute sale deed.

I am going to assume that you mean token money, because otherwise, you are not obligated to make any payments other than token money at the time of agreement to sell.

So, the position in the courts reflects that earnest money is required to make the agreement enforceable in law.

in practical position, it is most unlikely that the seller would agree selling without any assurances in the form of token money.

seller may deny to sell at the time of transfer incase you dont pay token money at the time of agreement to sell. 

 

 

Disclaimer: You are hereby notified that the above mentioned is only to read and shall not be used anywhere and any loss, if any, that may arise on your use of the above mentioned, is at your own hand and the writer owes no liability.

Advance here I mean is token money only.... The situation is as follows....a person has given a loan of some amount...now the lender was in a fear that he may not get the amount back....he wants to get some surety...so for that he wants to enter into a agreement to sell at that particular price...so that if he fails to return the amount.. the lender can get the land or plot register in his name...and if the person return the amount back....the agreement to sell will get cancelled...in this situation actually there need not be any advance amount to be paid...now the borrower and the lender are ready to enter into the agreement to sell and get the agreement registered with the registrar...My question is...can such type of agreement be enforced in the court of law as there will be no advance amount received from the lender( the loan transaction and the sale of plot to be treated as different transactions).....and is it mandatory to make any advance for the enforcement of the agreement in the court ??? in case the borrower defaults the amount and the lender wants to get the plot registered can he do so as he has not paid any advance particularly for the plot??

Contract is valid where promisor is agreeing because of something done volunatraily by the promisee before i.e. providing loan. 

This seems to answer your queries. 

Get the deed drafted carefully. Explain the circumstances . Provide all the facts. All the details. Dont leave out anything. 

 

Disclaimer: You are hereby notified that the above mentioned is only to read and shall not be used anywhere and any loss, if any, that may arise on your use of the above mentioned, is at your own hands and the author owes no liability.