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Tushar Parkhi   30 April 2021

Seller denying to sell the property


I visited a property based on add given in newspaper. Property is a bungalow built on a plot in cooperative housing society. I visited property exactly one month ago. I liked the property. Hence me and the owner of property decided to meet on next day to discuss further regarding cost and next process. Next day we mate at the same property. My relatives and both side brokers were present during that meet. We discussed and mutually agreed on a price. On the next day I went to owner. I handed over the check of Rs 1 lakh as a token / booking amount. I got a signature of owner on a plain white paper having 1 rs revenue stamp at the bottom. Owner cross signed on the revenue stamp. All the details including name of current owners, property address, agreed price and token amount with check details were mentioned on the paper. Also it is written that now owner is bound to sell this property to me and if he needs to sell it to somebody else then he will need my permission. Owner first read the contents carefully and then cross signed on revenue stamp.

Next day owner provided copies of whatever property documents he had to me and I handed over them to my lawyer for further review. Parallel I provided one set to my bank for loan processing. I paid to bank the fees required to process the loan such as legal fees. Bank did the valuation as well of the property and after completing all formalities bank approved my loan. Meanwhile I visited property thrice with some or the other reasons, showed property to my relatives, etc. and owner was always welcomes us. 

Now after a month owner is denying to go ahead with this deal. He said on the call that he is feeling that he is selling the property at lower price and asking for more money. His broker also tried to convince him but he is denying. Now he is saying that he don't want to sell the property and giving various reasons such as he is frightened to go out for completing documents due to pandemic (Covid) situation, he is not getting good property to live after he will see this property, completion certificate is not available and he cannot get it, etc.

Can you please suggest what are the options in front of me. Owner is ready to return the token but I do not want to take the token back and want to go ahead with this deal. To me it is clear case of framing. Can I file a suit against the owner.


 16 Replies

Pradipta Nath (Advocate)     30 April 2021

Need to go through the receipt where he acknowledge payment of Rs 1 Lac and agreed to sale the property to you.

Tushar Parkhi   30 April 2021

Thanks for the response. It was written in local Marathi language. I am pasting here the draft by removing specific details. The final copy was cross signed by owner on revenue stamp.Signature was taken from 1st owner only in the list below. Other owners are son and two daughters of first owner.

 || श्री ||

दि. ३०/०३/२०२१



सर्वसंमतीने नमूद करण्यात येते कि प्लॉट क्र. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX हि मालमत्ता खालील व्यक्तींच्या मालकीची आहे.





वर नमूद केलेल्या मालकांनी सदर मालमत्तेची विक्री श्री. XXXXXXXXXXXX व सौ. XXXXXXXXXXXX यांना करावयाची ठरविले आहे. हा व्यवहार दृढ करण्याकरिता XXXXXXXX यांच्या बँक खात्यामधून XXXXXXXXXXX यांस रु. १,००,००० (रुपये एक लाख मात्र) देण्यात आले असल्याकारणाने ह्या मालमत्तेची विक्री श्रीमती XXXXXXX यांनी श्री व सौ XXXXXX यांच्याशी करणे बंधनकारक आहे. संबंधित मालमत्तेचा व्यवहार इतर कोणाशी करावयाचा झाल्यास श्री व सौ XXXXXX यांची संमती घेणे बंधनकारक राहील. चेक चा तपशील खालीलप्रमाणे.

बँक: XXXX बँक

शाखा: XXXXXX

चेक क्र. XXXXXX

खाते क्र. XXXXXXXXX

XXXXXX व XXXXXX कुटुंबियांच्या संमतीने सदर मालमत्तेच्या विक्रीच्या व्यवहाराची रक्कम रु. XXXXXXX ठरली असून ह्या विक्रीच्या व्यवहाराची पूर्तता करण्याकरिता जरुरी असलेल्या सर्व कागदपत्रांची पूर्तता करण्याची हमी श्रीमती XXXXXXX यांनी दिलेली आहे. तरीहि सर्व आवश्यक कागपत्रांची कायदेशीर पूर्तता झाल्यावरच सदर व्यवहार पूर्ण झाला असे मानण्यात येईल.



विक्रेते,                                                                                                                                खरेदीदार,

XXXXXXXXXXXXXXX                                                                                           सौ. XXXXXXXXX

                                                                                                                                               श्री. XXXXXXXXXXXX

Pradipta Nath (Advocate)     30 April 2021

Sorry, its beyond my understanding. Please seek a paid up conference from a local Advocate who can read and write Marathi. Extremely sorry buddy!!

Tushar Parkhi   30 April 2021

Not a problem.

Trivendra Kumar Sharma (Practicing Lawyer)     30 April 2021

You may immediately take permanent injunction on property to restrain seller from alienating.  

1 Like

Hemant Agarwal ( Mumbai : 9820174108)     30 April 2021

1. Token /Booking amount and acknowledgment of same on plain paper receipt is legally infructuous and legally not enforceable by either parties, in anyway, without any exceptions.

Keep Smiling .... Hemant Agarwal 

Pradipta Nath (Advocate)     30 April 2021

Yes though the receipt cannot be enforced, you better serve notice or sue his to refund your money with compensation.

1 Like

Tushar Parkhi   30 April 2021

Yes, that is the last option. But I really think that this is fraud as I have spend efforts, money and emotions as well since owner agreed to sell the property to me and signed the paper. Atleast law should not allow him to sell the property to others for certain period. Law should think in the way that what is the guarantee that owner will not behave in similar way to other buyers.

Pradipta Nath (Advocate)     30 April 2021

Definitely it's not worth of your time and emotions you put over there. Better you first serve a legal notice to him and then move accordingly to enforce your right to first offer on the ground.

1 Like

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     01 May 2021

The point is if you wish to proceed legally, you have to base your case on an unregistered agreement to sell, which may not be valid. Further, even if it is accepted with some fine or some such levy to make the agreement valid, it takes a very considerable time for the case to be settled and you need to spend much more money you have already spent for getting the loan, visits etc. I feel it is better to have a talk with the Seller, who is now backing out, to pay you your reasonable expenses and sever the relationship with this so that you shall not be further burdened with the case and related issues.



2 Like

Dr J C Vashista (Advocate)     01 May 2021

Acknowledgement of Rs. 1 lakh has been there with respect to token money, although it is not an agreement to sell / purchase.yet it can be used for instituting a suit for specific performance with permanent and mandatory injunction.

It would be better to consult and engage a local prudent lawyer for appreciation of facts/documents, professional guidance and necessary proceeding

2 Like

P. Venu (Advocate)     01 May 2021

Yes, you may institute a suit for specific performance. The document in hand is an agreement for sale. It is not necessary that an agreement for sale be registered. However, it is deficient in stamp and hence is bound to be impounded. You need to make up the shortage as well the fine which could be  a substantial sum.

Any how, as already suggested, you may serve a legal notice before initiating any action. Also, you have the option to place the matter before the Adalat functioning in the local court.

2 Like

munaga rao   01 May 2021

Your agreement is flawed one. Receipt alone cannot help you. Where is the forfeiture clause? Where is the time in which the transaction had to be completed? What is the sale consideration ? Where is the Agreement of sale on non judicial stamp paper?


M N Rao, Advocate 


Tushar Parkhi   01 May 2021

Better I should connect with owner to check if he is negotiable further and will go for buying the property. But if he is denying to sell at all then I will have to send the legal notice it seems. Not sure how much that 1 rs stamped paper remain valid but I will still go for it as I don’t want him to sell it to someone else so easily. I will ask him to pay me hefty amount in court and will give the evidence of my spending. 

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