sachin (CA) 14 March 2011

advance payment issue in case agreement of sale is forefiet

Hi,

I am the owner of a land. I have enter into an agreement with buyer, He paid me advance and agreed to pay rest of the money and go through the registration process in one month.

After one month when i asked him to pay me rest of the money and start the registration process, he said he is unable to do so as he has no funds.

Am i liable to return his advanced money? As such there is no clause in agreement of sale about the advance payment in case buyer is not able to buy the property.

What should i do ?

Please respond me

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4 Replies

adv. rajeev ( rajoo ) (practicing advocate) 15 March 2011

Issue legal notice the buyer informing him to purchase the property within the given days otherwise AOS stands cancelled and token money wont be refunded.

Bharatkumar (ADVOCATE ) 15 March 2011

Give notice for cancel the Agreement and refund the money and make a cancelletion Agreement.

sachin (CA) 15 March 2011

mixed reply

can you further elobrate the question, seeking advice on non-refund of money as the deal has put seller's plan hayway.

Hetal (Adovcate) 15 March 2011

Dear Mr. Sachin,

You can issue a legal notice to the purchaser stating all the facts of the case and further state that the money will not be refunded and legal consequences will follow with costs.

In case, you desire to go ahead with the transaction, you must show you readyness and willingness to perform your part of obligation under the Agreement and you can file a suit for specific performance as also damages against the purchaser.