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Gaurav Kapadia   21 April 2022

Buyer failed to pay balance amount after paying stamp duty and registration done of flat.

I sell my flat in Mumbai, registration done and stamp duty paid by buyer. He willing to opt loan of major amount from the bank but, due to some reason Bank has denial to give him loan. And now I can't wait anymore as I have given him almost 1 month for balance amount arrangement. My query is what if he is not paying balance amount? As per sell agreement clause I have to handover the flat once I recived full and final amount. In this scenario, what steps I have to take?


 11 Replies

Divya Vijayan   22 April 2022

If it's clearly mentioned in your sale agreement that you have to handover the flat once you get the full payment then you can wait until the buyer makes the full payment. It is the buyer's liability to pay the full amount as per the agreement between you two. You can seek a court order compelling the buyer to make payment and effectively force the implementation of the said agreement. However, if the buyer is in poor financial health, recovery of the funds may prove impossible even if armed with a court order. 

Kindly refer to the below mentioned link:-

  • https://www.lawyersclubindia.com/articles/law-on-recovery-of-advance-or-earnest-money-9367.asp
1 Like

G.L.N. Prasad (Retired employee.)     22 April 2022

Contact a local advocate and get a legal notice issued to the purchaser, demanding for payment of the rest of the amount within a month and get the property registered, failing which the advance has to be appropriated ....on such lines.  Wait for a response and follow the guidance on receiving such a reply.

1 Like

Gaurav Kapadia   22 April 2022

Property has been already registered, stamp duty paid by the buyer..

SHIRISH PAWAR, 7738990900 (Advocate)     22 April 2022


You can demand the balance amount as per sale agreement by sending legal notice. If he fails to comply with the legal notice you can approach the civil court for cancellation of sale agreement. 

1 Like

G.L.N. Prasad (Retired employee.)     22 April 2022

Do not deliver possession and let the other parties approach the court.

Kishor Mehta (CEO)     23 April 2022

Do not give possession of the flat unless the entire amount is fully paid. It was a childish thing to stamp and register a sale document without realizing the full amount beforehand.

Dr J C Vashista (Advocate)     23 April 2022

The property is already stated to have been registered as "sold" to the vendee, after payment of stamp duty and registration charges, how is consideration amout " still outstanding " ???


Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     23 April 2022

@Dr J. C. Vashishta

In Mumbai full payment of stamp duty and regisration is compulsory at agreement with advance payment stage itself.

@Gaurav Kapadia

What does the agreement say? Is there not a time limit in the agreement for closing the deal?  Does not the agreement say what to do if the full amount is not paid within the time limit?  Normally in sale agreements if the full amount is not paid within the time limit, the seller can cancel the sale deed and sell the property to someone else. But the situation is difficult. There are cases where the buyer has gone to court to prevent the sale to someone else and the case dragging on for years. You will also find it difficult to find a new willing buyer under the circumstances.

1 Like

Dr J C Vashista (Advocate)     24 April 2022

Dear Mr. MPS Ramani,

Please appreciate stamp duty and registration charges are totally separate to consideration amount, which has to paid to the government (mandatory), whereas present query pertain to balance of consideration amount, isn't it ?

Thanks & regards

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     24 April 2022

Yes I appreciate and understand. That is why I separately addressed Gaurav Kapadia with regard to his problem. The only ultimate option available to the seller is to cancel the sale agreement and sell the property to some other buyer. The question whether the advance paid by the first buyer is to be returned or forfeited has to be decided separately. As for the stamp duty paid to the Government, I think it is lost forever to the first buyer. The law in Mumbai is that full stamp duty has to be paid at the agreement stage itself.

1 Like

Gaurav Kapadia   23 July 2022


I got the balance payment, it was delayed but, I received it that is big relief for me.

Thanks all for your support and guidance..

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