Whether the purchaser did not confirm title and marketability of the subject property before finalisation of the transaction and making advance payment?
If not, now you may ask the seller either to handover title documents in his /her name or all stakeholder must execute sale documents, otherwise refund the amount paid to him /her.
It is better to consult and engage a local prudent lawyer for appreciation of facts/ documents, professional advise and necessary proceeding.
You have not posted the complete facts. All that can be stated is that imperfect and/or encumbered title is sufficient cause for repudiating the agreement.
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