• Property dealer is not following the agreement of selling property

I have done an agreement on 100 Rs stamp paper wiith the property dealer not with the owner of the plot because  she was out of the city and has operated and so we give the token money of 2 lakh Rs to the property dealer and finalise the date of up to 30 June 2015 for the registry of the plot in vikasnagar tehsil of dehradun district of uttarakhand state. But now the dealer is saying that the owner of the plot is denying to sell the plot and when I told to the partner of owner, he said that He and owner of the plot is unable to sell the plot till the agreement date and owner also said we are not sure till which date we will do the deal. My ques is we have done the agreement with the property dealer on behalf of the seller paety not with the owner so should we case against the property dealer for not follow the agreement and said him to pay double amount of token money to us.

Please guide me for above problem.
Asked 1 year ago in Property Law from Dehradun, Uttarakhand
Religion: Hindu
1) you ought to have entered into agreement with owner of the plot and not broker / property dealer

2) unless dealer has power of attorney granted to him by the owner,  dealer has no powers to make any commitment or take token money from you 

3) since owner refuses to sell take your token money of rs 2 lakhs from the dealer 

4) never give any advance money unless you have consulted a lawyer and have entered into MOU/ agreement for sale with owner 
Ajay Sethi
Advocate, Mumbai
23401 Answers
1230 Consultations
5.0 on 5.0
If you have any document showing the receipt of any money by the owners by themselves or through the agent then you have evidence of an agreement enforceable in law and you may file a suit for specific performance of the agreement. 

In case you are comfortable with letting the sale go and recovering your money then you may file a suit for recovery of damages alleging non completion of agreement on behalf of the landlord causing you irreparable loss and damages.

If you have no document or receipt from the landlord then you may have to move for recovery of damages on the property dealer because the court will not be able to enforce specific performance on the agent where the title to the property belongs to third party. You pray for damages as well against the agent. .

If however the agent runs his business in form of a company through that company then you night also consider filing a winding up petition because a winding up petition is normally disposed off within months whereas suits take many years to be heard. But please do note that in a winding up proceeding you may recover the original amount and some interest but cannot claim damages. Winding up petition will include some technicalities and hence you will be better advised to check all four corners of law before proceeding on the form of remedy you choose for yourself.
Saptarshi Banerjee
Advocate, Kolkata
183 Answers
4 Consultations
4.9 on 5.0
Hi, you can not file a suit as against property dealer as he is not owner of the property.

2. You have entered into an agreement with wrong person and you have not taken legal opinion before going to purchase the property.

3. So ask the deler of the property to refund the amount.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
It is good that you have done the deal with the property dealer and hence due to this delay you can bring this dealer to court.
File a case in consumer forum for speedy execution and registration of the deed of sale. You can claim for damages as well.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
1. Why would the owner sell you the plot on the basis of the agreement which you made with the property dealer and not him? If the agreement is not made with the owner then you cannot assert any legal right against him.

2. On what basis do you say that you made the agreement with the property dealer on behalf of the seller? Is there an agreement between owner and the property dealer which preceded your agreement with the latter which authorized the latter to enter into an agreement on behalf of the owner?

Ashish Davessar
Advocate, Jaipur
18266 Answers
450 Consultations
5.0 on 5.0
A. On what basis you have been entered into an agreement? Has dealer got registered GPA with respect to the same from the land owner? What is the mode of payment to the dealer? i.e, cash, cheque or DD.

B. You don't have right to question the land owner by presenting this agreement. However, you can lodge the complaint against the dealer under cheating and promissory estoppel.

C. If you paid cash and aknowledged in the agreement, you can claim the token advance with interest and claim damages for mental agony from the dealer. You cannot compel to execute contract due to this agreement was not executed between landowner.
B.T. Ravi
Advocate, Bangalore
738 Answers
31 Consultations
5.0 on 5.0
1) ask dealer to return the cheque of rs  one lakh fifty thousand  which has not been encashed 

2) also refund fifty thousand paid in cash 
    

3) unless owner signed agreement it is not binding on  him .

4) further no power of attorney executed by owner in favour of dealer 

5) take your money and forget the deal 
Ajay Sethi
Advocate, Mumbai
23401 Answers
1230 Consultations
5.0 on 5.0
1. When was the amount given by you to the property dealer? You must understand that verbal promises cannot be enforced in the court for they cannot be proved.

2. If the owner does not agree to sell the land then move to court and file a case for recovery against the property dealer in the court subject to the agreement which you made with him.

Ashish Davessar
Advocate, Jaipur
18266 Answers
450 Consultations
5.0 on 5.0
A. As per your statement, all transaction has been recorded in the agreement with the dealer and you have been created a documentary evidence for the same.

B. On the basis of the said transaction, you can recover the amount by filing the summar suit before the Court along with damages.

C.Whatever conversation had occurred between owner, partner and dealer cannot be proved before the court of law because of documentary proof would be prevail.
B.T. Ravi
Advocate, Bangalore
738 Answers
31 Consultations
5.0 on 5.0
1. You forget about claiming double the amount paid by you and be happy if you can get back at least what you have paid to the property dealer,

2. Actually an agreement for sale stands with the owner/seller of the property or his POA holder and the buyer  and not with the broker,

3. Ask the said dealer to return you the amount you have paid to him,

4. File a cheating case and/or file a police complaint against him if he refuses to refund you the said amount.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
234 Consultations
5.0 on 5.0
1. issue stop payment instruction to the Bank for stopping payment of the cheque for Rs.1.50 Lakhs on the ground of not fulfilling the agreement,

2. Ask him to return the balance Rs.50 thousand since the deal did not fall through.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
234 Consultations
5.0 on 5.0
The amount that has not been cashed does not contribute to your cause. Only the Rs 50,000 in cash is where you derive your cause of action from. 

Also Verbal agreements are enforceable but only if you can prove of the existence of such verbal agreements.
Saptarshi Banerjee
Advocate, Kolkata
183 Answers
4 Consultations
4.9 on 5.0

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