Ernest money paid for buying a property
k n nagaraj
(Querist) 26 May 2014
This query is : Resolved
My son has paid a huge sum of earnest money to a property owner in mumbai to buy a flat. The owner has consented to give news paper advertisement calling for objections if any. However he has not signed any agreement for sale. The deal is done through a broker.
Now it is found that the builder(Not the flat owner ) had taken a loan of certain sums from banks while building this project by mortgaging. The release deed is not done.
The owner was TOLD ABOUT IT AND HE HAS NOT PROVIDED THE CLEARANCE.
when MY SON ASKED HIM TO RETURN THE EARNEST MONEY, the flat owner has termed my son as defaulter and says he will not return the earnest money.
Please advise action for recovery of money.
T. Kalaiselvan, Advocate
(Expert) 26 May 2014
You may issue a legal notice to the owner demanding the refund of your deposit money upon failure of execution of sale deed, besides, you can even lodge a police complaint in the local police station for cheating. Consult a lawyer in your locality and proceed as per his advise.
Rajendra K Goyal
(Expert) 27 May 2014
Send legal notice for refund of advance, agree with the expert.
ajay sethi
(Expert) 27 May 2014
dont take any decision in haste ? how much was earnest money paid / was it by cash or cheque? did the seller sign any acknowledgment while taking earnest money ?
K.K.Ganguly
(Expert) 27 May 2014
1. What evidence do you have in support of your claim?
2. If you have any evidence, file a police complaint immediately u/s 420, 406, 120(B) under copy to the S.P.,
3. If police fails to take any action, file an application before the Court praying for a direction upon the police to investigate and act based on your complaint.
k n nagaraj
(Querist) 27 May 2014
The ernest money has been paid by cheque. It is 25 lakhs. The cheque has been encashed. There is no acknowledgement for receiving the cheque.
T. Kalaiselvan, Advocate
(Expert) 29 May 2014
Since you have paid the amount by cheque, there is evidence for having made the payment and acknowledgment for receipt vide encashment, hence issue a legal notice through a lawyer demanding refund of the same.
