Issues with my sale agreement on buying a house
Sathish
(Querist) 11 January 2014
This query is : Resolved
Hi,
I kindly request you to give a primary support on this issue & help me to proceed further.
Sorry for the long decription
Issue Description:
My Father friend was ready to sell his house,Since we are very close to him & very near by.We have planned to take his house with some money & some loan.
We made an sale agreement for 6 months & paid token advance with legal advocate support.
Then we approached bank for home loan for some amount.But the bank legal lawyer denied the loan saying some issues with title deed,Loan cannot be given. But he said,only loan is not possible,You we can still register the property if we wish wit your money.No issues will be there.
We tried so many banks,Same reply.
Since the seller was very close to our family We believed him a lot.He also agreed to register the house for us if we pay the total money.
Since we don't want risk in these documents,We said no & asked our token advance back.
He was not able to give immediately,hence we had given 6 months time as per his request since he is our friend & still believed him
Now he is saying he will not give that money back & playing a lot with us.
The only thing we have now is the sale agreement.
Hence we have seeked Advocate support & send notices thrice to him to come & register the house or give the money back.
Yet to get the reply from him.
Questions:
Now my questions are
1.How can I deal with this issue now?
2.Can I go to court with the agreement? how long it will be taking to come to conclusion.
3.Incase if he says,Register the house in the court,Can we register it since because we are getting the property directly from court.Can we say it is legal now with no documents issues in this property?
4.Once we get the property from court.Can we get the home loan support because we are lending some money from our neighbours to buy this incase if it turns like that.
I really request your support.
Sathish
Anirudh
(Expert) 12 January 2014
Dear Mr. Satish,
Banks are correct. In case of any defect in the title of the property, naturally they cannot advance any home loan against the same.
However, if the buyer (you) are willing to take the risk and put in your own money in buying the said property, nobody will bother about it.
Now, coming to the question of registration:
1. First, you have to check up whether there was any time limit prescribed in the Agreement to sell, within which you have to pay the entire consideration and get the property registered.
2.If there was time limit prescribed, and whether you are within that time limit.
3. If the time limit has exceeded, whether you sought and obtained extension of time?
4. In case covered under point (2) above, you can file a suit for specific performance of the agreement to sell. And also seek an injunction restraining the owner from selling etc., of the property to any third party.
5. There is nothing called court registration. Court will only decree your suit. Based on such a decree, the registration will be done only in the sub-registrar's office.
6. Just because the registration is done in your favour, it does not mean that the past defects in the title are erased. The defects will continue. You cannot obtain any loan from anywhere. (That's why the bankers had told you that if you can buy from your own funds we have no problem!)
But, as of now, we do not know as to what kind of defect is there in the title.
malipeddi jaggarao
(Expert) 12 January 2014
First of all, what is the defect in title noticed by the advocate.
It is true that many times, the defect is technical but will not be an hindrance for peaceful possession. If you are interested to purchase house, you do so with your money or rising the money not as home loan but by some other means. Sale agreement is no way concerned whether you are able to obtain the Bank loan or not. Title verification has to be done before entering into sale agreement. Court will not settle the matter. It will only give decision on the prayer in the petition filed by either you or the opposite party.
ajay sethi
(Expert) 12 January 2014
agree with anirudh
Pradeep MK
(Expert) 12 January 2014
You have not mentioned whether the agreement is registered on.
Banks will not advance any loan based on the unregistered agreement.
You have not mentioned about the defct in the title.
You can file suit for refund of money paid to the seller.
Sathish
(Querist) 13 January 2014
Hi Anirudh & mallipedi,
Thank you very very much for your wonderful support. Really I am pleased with your replies.
Specially Anirudh,Thank you very much for your detailed instructions & time taken for me.
Now Answering your questions,
1 Question :
Yes,The time limit was mentioned in the agreement i.e 6 months for registering the property from the date of sale agreement.
2.Question :
First month - identified the document issue & denied buying the house.Had given him 6 months time to give the advance token money back.
On 5 th month,We came to know he will not give the money back,Hence seeked advocate support legally & send notices to him within the time period 6 month for our safety purpose.
Now crossed the 6 months mentioned in the agreement & almost three notices gone to him by adovcate,no reply.Now going to file the case directly in court.
Regarding Defect in title - I will update you in detail shortly after discussing with my father.
AS you said, defects will continue, We will rethink to buy the property & will work on it more.
Questions:
1.Are we in safer position to get the money back as we sent legal notices to him within 6 months. Now we crossed the 6 months.But notices had been sent on 5 th month itself.
2.Our Legal lawyer told us that we need to send 3 notices,if no reply from him,then we will go to court.For Court, our lawyer says we need to pay money(court fees) to deal this.But the amount he says to us is too huge.Usually how much court fees for this kind of issues & what is the actual procedure & flow for this I would like to know?Any links to know the procedure & follow?
3.How long it will be taking for these kind of issues in court?Will it be dragged a lot??
4.The sale agreement made was not registered anyware.It was a normal agreement made infront of Legal lawyer/notary/Witness.
Are we in safe position to get the advance money back atleast with the agreement we have & notices sent by lawyer? Pls advice & Again sorry for long story.
regards,
sathish
Sathish
(Querist) 13 January 2014
Hi Pradeep/Ajay/Arunagiri/Rajendra,
Thank you very much for your reply.
Anirudh
(Expert) 13 January 2014
Dear Mr. Sathish,
Everything will depend upon the contents of the Agreement to sell; the contents of the legal notice sent by you etc.
It is not clear what you wrote in the legal notice sent. Whether you asked for the return of the money advanced, or wanted the registration of the property to be done in which case you should have stated that you are ready and willing to pay the balance consideration.
If you had simply asked for the return of the money advanced, due to defect in title - then the same will depend upon as to what is stated in the Agreement to sell - namely whether anywhere it is stated that you have gone through the title documents and satisfied yourself; or whether in the event of any defect or cancellation of the agreement, the amount will be returned; or in the event of the sale not taking place for whatsoever reason the amount of advance would be forfeited by the seller; etc. etc.
If you had asked for registration of the property, then you have to approach the court for specific performance of the contract. For that you have to successfully prove that you had enough money and was willing. (I remember that you said that you were trying to get money from neighbours as the bank has refused to give loan. This means that you were not having enough money with you.) The vendor will take these things as defence when the court case begins. All these factors will come into play. Therefore, sitting at a far off place, without looking into the documents, legal notice etc., it is not at all possible for anybody to give a definite answer or predict the things that may happen.
T. Kalaiselvan, Advocate
(Expert) 14 January 2014
Expert Mr. Anirudh should not have gone into this depth giving his opinion to the author because the author's statement is contradicting. Firstly, it is an unregistered sale agreement which is not legally valid, second thing that he sent 3 legal notices demanding money, as per him they were notices and not rejoinder notices subsequent to first notice, so the legality of the notice is in question, moreover what is the reason for waiting for six months to get back the advance amount, was there any agreement to that effect?, a lot of technical questions need to be answered, hence without seeing the papers it would be difficult to give a proper opinion.
Anirudh
(Expert) 14 January 2014
Dear Mr. Kalaiselvan,
Thanks for your comments.
I shall be happy if you can kindly enlighten me as to on what basis (legal provision or judge made law) that you say that "Firstly, it is an unregistered sale agreement which is not legally valid"?
After knowing this, I will revert for the rest of your comments.
V R SHROFF
(Expert) 14 January 2014
Banks cannot give loan for property on unregistered agreement.
Anirudh
(Expert) 14 January 2014
Nobody wanted any bank to give any loan on the basis of unregistered Agreement.
But the Banks refused to give the loan, because the documents of title of the vendor are defective (probably chain is not maintained etc. etc.).
Therefore it is not the question of seeking loan on the basis of any unregistered agreement.
malipeddi jaggarao
(Expert) 15 January 2014
The author has not given reply to my question "what defect that was found in the title to the documents by the Bank advocate". He has intervened later but not clarified. It appears he wants to avoid purchase and get back the advance.
The opinion on the title by Bank's advocates is given by taking all extra precuations by some bank advocates. Sometimes, these extra precautions can be ignored either by the banks if they are willing to advance the loan recording justification. The purchaser should have gone to another advocate and obtain independent opinion apart from the opinion of the bank's lawyer. His stoic silence is an indication that he wants to avoid the purchase. Let him come out with full facts before we jump into the conclusions.
