Undisclosed encimberances on property and online statement not revealing encumberances
Jay
(Querist) 20 May 2015
This query is : Resolved
Hi Team ,
I had entered into a sales agreement based on prima facie clean documents submitted by the seller with all the necessary documents evidencing non existence of encumberances.Basedon these documents 20% of the property has been self paid by myself , however it wass discoverd at a latter stage while LIC ( Lender for me) was clearing the legal process refused to accept the online copy related to 2 months period of November and December 2014.Upon request when we raised fresh EC in person -in registrar office it was discovered that there is a registered agreement in subsistence with the seller having collected an equivalent money from another third party ( though the online version still shows free from encumberances).
The existence of encumberance and a liability being incurred by seller on the property was never disclosed to us :
Is there any recourse available against the seller for deliberately concealing the facts related with sale ?
The party has promised to clear the EC entry by clearing the liability and evidencing the cancellation of EC . I have given him sufficient time to the seller but the seller is claiming financial difficulty in clearing liability and clearing the EC , hence I entered into a supplementary agreement with the seller agreeing to clear all such encumberances by end of may and the seller to refund by way of Post dated Cheque for return of 20% amount paid by me as token money .
Will there be additional legal recourse availablke to me in case the seller is unable to pay back money and dishonours the PDC due to insufficiency of funds ?
Kumar Doab
(Expert) 20 May 2015
You have burdened yourself with another payment at risk.
Did you engage an able lawyer for legal opinion on the property before entering into first agreement to sell?
Your lawyer would have advised not to get carried away by so called online versions...............
If this so called online version is made available by state Govt. and 'Genuine' then the SRO is at risk...........
If no such so called online version is made available by state Govt. then the document is fake and you have been taken for a ride.............
Have you been advised by a lawyer to enter into supplementary agreement?
In any case now you have to wait and pray that the seller is available to:
- cancel the previous registered agreement to sell and remove the encumbrance
- or to be sued by you......
Rajendra K Goyal
(Expert) 20 May 2015
Consult local lawyer and show him both the agreements and related documents.
malipeddi jaggarao
(Expert) 21 May 2015
Why PDCs for performance of supplementary agreement? If you are keen to purchase the property, by paying partial sale price again, you can personally monitor clearance of existing encumbrance.
T. Kalaiselvan, Advocate
(Expert) 24 May 2015
In my opinion by obtaining a Post dated cheque you are inviting or entering into a litigation platform which has been avoided till date. It is for certain that the cheque too will not be honored on presentation on its due date and you may be found spending more on the cheque bounce case as well as money recovery suit after that.
The vendor does not seems to be genuine so see how you are going to safeguard your 20% sale consideration amount lying with him.
Jay
(Querist) 31 May 2015
Hi Team , Thanks for all your responses really appreciate your valuable insights.
Hi kasivelan : there is no other availa he has left and things could not wait eternally hence I had to invoke this option of PDC - to just make teh case strong .
Hi Malipeddi Jaggarao : I have given him reasonable time and opportunity to close amicably but as a last resort I had to invoke this .
Hi Doab Kumar : This is an online version available in state govt website
can you clarify - what is meant by "then the SRO is at risk"?
Yes i had taken expert professional opinion on supplementary agreement
Hi All:
Is there a strong way to put into law such people when you have sufficient evidence to demonstrate and ge the case expeditiously - I am worried that people are losing confidence on the law enforcement and are in fact afraid to invoke this option of Fear - and the miscreants are thriving on such fear .
Is there someone who can help me in letting me understand what is the most expeditious action that can be taken once the cheque is bounced ? can criminal proceedings be initiated immediately as there are sufficent evidences that the default is wilful.
