Sham Lal 14 November 2018

Refund of advance 2 lacs - Flat buyer backing out of sale agreement -

I got a buyer for my flat. He paid 2 lacs advance and did sale agreement.

Buyer is a real idiot and my daughter wasted so much time in helping him getting bank loan approved, helping him getting sale agreement done

now his bank loan is passed.

buyer is not ready to communicate properly and now harassing for refund of 2 lacs.

He troubled my daughter so much with his foolishness, misleading infos. She postponed her onsite travel believing him that he will do registration. she even spent her diwali holiday looking for rental flats. buyer is not ready to even speak clearly or meet.

Are we liable to refund him full amount of 2 lacs?

or he has to buy flat? bank people also counseled buyer but buyer and lawyer are some relatives, cynical people or changed their mind.

I want to penalize this buyer as we were so clear, helpful to him and this disgusting man had been troubling us unnecessarily. Now 90% things are done, his loan done then he is backing off.

there is no refund clause in sale agreement

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7 Replies

manoj 14 November 2018

As per your query, whether the seller is entitled to forefeit the advance money (YES). As per Supreme Court Guide lines observed in past one decade that the seller is entitled to forfeit the earnest money deposit where the sale of an immovable property falls through by reason of the fault or failure of the purchaser. You no need to worry as per the above observation. If you want I will provide Judgment.

The Rocking Lawyer

V E MANOJ KUMAR

ADVOCATE

CELL NO 8686159292

Suri.Sravan Kumar (senior) 14 November 2018

issue legal notice to the buyer to pay the balance sale consideration as per the Agreement of sale

Shashi Dhara 14 November 2018

U issue legal notice to buy the property with in specified time .if he delays or refuses u forfeit the advance as expenses &damages.let he go to court .if he go to court for specific performance of contract then .u take remaining amount &sell the property to him as per agriment .

P. Venu (Advocate) 14 November 2018

Is there any time specified in completing the transaction? If he is not abiding by the terms, he can find another buyer.

Shanmugam .C 14 November 2018

Sir,

As sugessted above by Mr. Shashi Dhara first you may send a notice by RPAD by giving 30 days time and keep Postal acknowledgement / postal track .

You have not informed the date of sale agreement, whether sale agreement in stamped paper or in plain paper and uou also not indicatewhether any the time for regisration of property.

C. SHANMUGAM , 14-11-2018

RETIRED EMOLOYEE

Sham Lal 14 November 2018

Sale agreement is done on 200 rupees stamp paper by buyer and me at my home. No witnessess. I took just photos of agreement. Agreement date is 26 oct. 2 months time is given. Verbally it was agreed upon asap registration on 21st oct but later buyer lied that its 2 months written. He is intentionally delaying and we want to finish the sale off. He is harassing my daughter saying that she has to pay 50000 compensation plus 2 lacs to him. What is our liability in this case?

Suri.Sravan Kumar (senior) 14 November 2018

1.it appears that the agreement of sale is not executed properly. Issue legal notice expressing your readiness and willingness for registration subject to payment of agreed balance sale consideration within a week failing which the advance money will be forfeited towards damages..

2.If you dont want to go for registration and want to cancel the agreement just issue notice for cancellation of the agreement.