Chitfundvictim (Software) 19 September 2016

Agreement of sale

Dear Respected members,

We entered into an agreement of sale with a buyer for our flat in Hyderabad. The buyer made an earnest deposit of Rs 7,00,000 on an agreement of sale with us and he got another one signed for bank purposes for Rs 2,00,000 to get his loan processed. Neither of the agreements were registered.

Due to a difference in understand the sale price, the deal did not go through and we(sellers) immediately returned the full earnest deposit. In the meantime, the buyers loan was approved by the bank.

Now, the buyer is claiming that he spent some money towards brokers and some more money as loan processing fee with the bank and wants us also to return this amount.

We are not willing to pay the buyer for the above amount as it is not a liability on as(even as per the agreement of sale).

Please guide me in terms of next steps.

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3 Replies

Kumar Doab (FIN) 19 September 2016

Hope you have the proof of refund.

You must have taken full and final,NOC/NDC etc.....

Hope the agreed sale price,refund, other T&C were inserted in agreement.

The other agreement for bank loan might be a malpractise, to undervalue for the purpose of duties/fee etc.

Your own counsel can examine your docs and opine better.

Chitfundvictim (Software) 19 September 2016

We did not take NDC/NOC but the agreement of sale was very weak from Buyers rights perspective. There is no clause in the agreement for sale on what would the buyer be compensated for if the deal is not concluded or if we(sellers) do not honor the agreement.

We have online transfer as the proof of transfer to the mentioned bank account.

Absolutely agree to the last point you mentioned, it is a malpractise on two fronts, 1) the buyer is claiming that it is needed for bank loan purposes and 2) the buyers has paid a huge amount to a "agent" to get loan approved.

Given the above, could you kindly suggest if the bank can put-up a status quo case on us?