S John (Teacher) 09 July 2012

Returning advance

Sir,

I have made an agreement and given advance RS 1000000 for buying a land and but only later on I realized that there was a problem with the land as there is a small factory closer to the land which make a lot of air pollution (bad smell). I had to change my mind and I decided not to buy the properly (land). I have seen this factory earlier but the land owner misinformed me that the factory was not at all working currently. The land owner refused to return the advance amount back.

Could you please advice me whether there is any provision to get the money back according to the low if I approach through court before the agreement period come to an end?

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3 Replies

sridhar pasumarthy (ADVOCATE) 09 July 2012

According toSection 55 of Transfer of property Act, seller is bound to disclose all the information sought for by the buyer with respect to the property and also to disclose any material defect, which the seller knows and buyer is not aware and even he could not discover the same with ordinary care.

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S John (Teacher) 12 July 2012

sir,

Thank you for your advice .There is a statement in the agreement saying that I will not be liable for any advance amount if I am the person who withdrowing from this transaction (buying the land).Is that be a problem if I move leagally ? Is it a must to approach court before the egreement period finshes ? Please help

sridhar pasumarthy (ADVOCATE) 12 July 2012

You can file a suit for refund of advance amount stating there is no wilful breach of the agreement on your part and it is on account of the defects in th property, you could not co-operate in furtherence of the contract.

Though it is not compulsory to approach the court before expiry of the period of agreement, better to issue a notice to the seller as soon as the defect comes to your notice and file a suit on failure to refund your advance.