• Recovery of advance from seller

Hello sir,

I gave advance I paid through (cheque) for a property in 2014. The agreement was not registered. Have later found that the property approval was not proper, so decided to drop the agreement and requested the seller to give my money back. The seller didn't agree. So I filed a suite. The seller has filed a petition in high court arguing that the agreement is not registered so he is not entitled to return the money. 

I am not interested in his property. I want my advance back. Please advice
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

1) What were the clauses in your agreement for sale .?

2) in case title is not clear and marketable you should be entitled to refund of your money

3) you have rightly filed suit for recovery of advance paid by you

4) you should get your advance money refunded

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

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What is the suit you have filed against the vendor?

Is it money recovery suit or injunction suit?

Have you communicated your decision to cancel the agreement and asked for refund through a lawyer's notice.

You could have followed it through consumer forum which would have been more effective and time consuming.

Though the sale agreeent is unregistered, it can be treated as receipt for money received by the vendor, hence you fight it out properly in the civil court itself.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

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1. It was incumbent on you to conduct due diligence before purchasing the property. You have to now prove that despite due diligence you could not ascertain that the requisite approvals had not been obtained by the seller and he suppressed or misrepresented the facts.

2. Without perusal of case papers it is not possible to advise on merits.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

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