I have recently purchased a flat at mumbai directly from a builder. We have executed the sale deed and registered it with sub-registar. As per terms and conditions we have also paid 95% payment after obtaining Home Loan. We will get the possession of the new flat in the month of May,2011. Few days back we came to know that the builder had already sold this perticullar flat to another party before I purchased it and sale deed for the same was registered with sub-registar. We immidiately informed the builder and the builder has agreed to this fact. According to him the first party was able to pay the considered amount within stipulated time frame and even after repeated reminders; that is why the earler Sale deed stand cancelled as per agreed clause. As of now he has not entered into any cancellation deed with that defaulter party since he is denying to sign any document. In this scenario who is the legal owner of this perticular flat; is it me or the defaulter party? How do I close this loop legally with the builder?
Secondly how come the the Financial Institution from which I have processed my Home Loan did able to figure out this fact during title clearence process? Is there any way where we can find out deatails of Titles / sale deed for this flat?
Can we take any legal action against the builder if he is not willing provide cancellation document of defaulter party?