Non cooperation of seller

Querist : Anonymous (Querist) 07 July 2021 This query is : Resolved
I had non registered agreement to sell of a property deal in Delhi of Rs.1.15Cr and paid advance of Rs.17lacs to the seller who was having home loan on the said property.
Seller gave us chain of documents just 3 days before the expiry of Agreement to sell. Before that I kept on writing mails to seller and requested him to submit different document to disbursement of my Home loan (which was delayed but sanctioned two days before expiry of agreement to sell due to Covid lockdown) to get the sale deed done. After getting all the documents from seller we found that property is NPA with notice served under section 13(12).

Seller has submitted letter with his bank for No objection certificate to sell this property. Agreement to sell was expired during all this activity and it is more than 15 days now. But process is getting delayed unnecessary.

What should be my plan of action now.

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Quick Summary

A buyer is facing issues with a property deal in Delhi after the seller failed to provide necessary documents on time, leading to the expiry of the agreement. The property is also NPA with the seller's bank. The advice suggests that while sale deeds can be executed after the agreement expiry, the buyer's bank must be willing to provide a loan based on the available documents. The buyer needs to decide whether to proceed or cancel and seek a refund, considering potential future litigation if the seller violates bank terms.

Dr J C Vashista (Expert) 08 July 2021
If you are interested in purchase of the property you must agree to give time to the vendor (seller) to arrange NOC from his bankers, where property was mortgaged, however, the loan became NPA therefore, the vendor has to clear his dues.

P. Venu (Expert) 09 July 2021
There is no constraint in executing the sale deed even after the period specified in the agreement for sale. However, the crux of the issue is whether your Bank is willing to provide loan on the strength of the documents made available, though belatedly.

T. Kalaiselvan, Advocate (Expert) 14 July 2021
Now you can decide either to go ahead with the purchase of the property or to cancel the booking and claim refund of the booking amount.
The NOC given by bank for this purchase may not hold good if the seller violates the terms with the bank, and you may be liable to suffer litigation that may arise at a later stage.

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