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Davinder Singh   18 January 2023

Refund of advance paid at the time of agreement to sale


My client as buyer entered into a agreement to sale for some property for 50 Lacs and paid 5 lac as advance payment and the balance was to be paid within 45 days by homeloan

However in procedure seller is not able to provide the documents related to property which were asked by bank and bank refuses to give home loan on documentation issue related to property chain.

In that case how can my client get the advance back from seller


 6 Replies

Real Soul.... (LEGAL)     19 January 2023

You need to go through agreement terms; the Agreement is only instrument binding between seller and buyer. If it is mentioned that seller shall provide documents to buyer to facilitate a home lone and he failed to do so then you can issue legal notice for return of AP. Since Agreement is not attached herewith it will be ambiguous to advice relevant to situation.

Advocate Bhartesh goyal (advocate)     19 January 2023

Yes, both you and seller are bound and abide by tems and conditions of sale agreement and if it is condition that seller shall provide you documents to facilitate home loan and if he does not provide you documents then you can terminate agreement and demand advance paid amount.

P. Venu (Advocate)     19 January 2023

Yes, any suggestion depends upon the terms and conditions of the agreement.

Adv. Mohit Chahal (Advocate)     20 January 2023

Dear Querist

It is not possible to give coreect legal opinion before reading terms and conditions provided under Agreement to sale.

The legal solution to this problem lies in terms and conditions of agreement in consonance of Law of the land.

Every term is not enforceable under law , it all depends on your agreement clauses.

Mohit Chahal
District & Sessions Court, Hisar
Phone No. 9968911099


sahithi reddy   21 January 2023

Indeed, both you and the seller are required to adhere to the terms and conditions of the sale agreement. If the seller is required to supply you with documentation to help with a house loan, you have the right to terminate the deal and request the advance payment.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     21 January 2023

If you do not get back the advance go to court to require the opposite party to return the advance and not to sell the property to a third party until the case is decided. Both sides will have to submit to the court documents in support of their stand and the court will decide. Even if the buyer has a clean case to get back the advance, but the seller does not give, the only remedy available is court.

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