Upgrad LLM

agreement disobey


Sir, I signed an agreement with the Vendor to purchase a residential plot in Huda colony,Chandanagar, Hyderabad. I paid Rs.1 lac as advance. Later I came to know that the plot is not suitable for borewell. Even the Geophysists confirmed the same and I have their reports with me. I inform the same to vendor and asked him to return the advance amount. He is denying for that.

We have not registered the agreement with the registration office. it is just a private agreement on a Rs.100/-

stamp paper. Is there any way I can get back my advance amount. Please suggest.

 
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Send a legal notice to the Vendor to return the advance, stating your reasons to rescind the agreement.  If he fails, file a suit for recovery of money.  Another way is to lodge a police complaint, But, the police will say that since this matter is a civil nature they cannot interfere.  Try to convince them by mentioning that before developing any residential plots, the builder should have done 'soil-test' and also other tests such as availability of ground-water etc., 

 
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Senior Advocate

If your agreement for sale contained a clause that there is water source in the plot, then you eligible to raise dispute over the same.  Otherwise, not.   Stamp duty varies from state to state and you better check the stamp duty applicable to Agreement for Sale in your state.  In Karnataka it is Rs. 200/-.  It should have been registered.  However, non-registration of the document does not make it invalid.

As you are liable to observe the covenants of the agreements, you cannot say that  the vendor should return the advance amount paid because there is no water source in the plot.  Better, negotiate and convince him for refund of the advance amount.  Failing, you need to find violation of clauses, if any, by the vendor to sue him. In such an even only, you may issue legal notice.

 

 

 
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Advocate

I agree with Mr. Raghavendra Rao's suggestion.

 
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