Property Purchase Agreement of Sale
Recently I have performed a Agreement of Sale for a property.I made Agreement of Sale for an amount of 33% of the market value of the property.
I have applied for bank loan for the rest of the amount, while the bank loan is approved based on my income and techincal aspects of the property, its stuck in legal clearance.
Bank has an argument that during 2004, property was transferred to a minor by his father as Gift Deed (minor was 10 years old in 2004) and the father himself received this property via Gift Deed by his mother (grandmother of the minor).
Later due to some reasons, the mother cancelled the gift deed in the subregistrar office and the father has cancelled the gift deed on his son's name (minor's gift, minor was 11 years old in 2005).
Now that minor child is a major for 3 years.
After that the lady has sold to some third party and subsequently there were 3 transactions.
What are the options for me to proceed with this property?
If I want to cancel the deal if the property is litigated, how can I get back my money? If the seller says he has spent all the money or he would repay only after he gets another buyer which is very difficult as everyone would come to know that property has no clear title, what are the best ways to get my money back?
Please advise, your help is highly appreciated.
Thanks & Regard,
Asked in Property Law from Hyderabad, Telangana
Well, minor;s property can not be transferred by his guardian without taking permission of court and if it is done the same is liable for setting aside by court if the minor on attaining majority so does.
In your case hence it is very important that the irregularity be resolved and the same can be done only if the minor gives written consent once the property is sold to you.
Else you better avoid it.
1) what are clauses in agreement of sale ?
2) there must be clause that in case seller fails to make out clear and marketable title seller would refund advance money paid
3) inform the seller that bank has opined that title is not clear and marketable and you are cancelling agreement and to refund your money with interest
4) if seller fails to do so move court for recovery of advance money paid with interest
you have made agreement with the person who has no right to alienate it. according to section 6 of TPA this property can't be transfer this property because he has only spes successionis in the property.
this agreement became void under section 64 of contract act. you should give legal notice for cancellation of agreement and return of earnest money. if he refuses to do so then file civil suit for recovery of money and cancellation of agreement. he is under legal obligation to return money, if delay causes then interest shall be applicable.
1. It seems that you did not engage a lawyer at pre-agreement stage to carry due diligence.
2. Legally speaking, the gift deed cannot be cancelled after it has been executed. However, as the property has been sold by the lady to another buyer and there have been 3 more sale transactions since then it will not be safe for you to purchase this property as it is highly disputed.
3. The cancellation of the gift deed by the mother and the subsequent cancellation by the father who made the gift deed in favour of his minor son have so far gone unchallenged, but a future challenge may be laid thereto. The outcome of a legal challenge to the cancellation of the gift deeds and the subsequent sales may be adverse to your interests.
4. What is the cancellation clause mentioned in the agreement? The sale can be cancelled by issuing a lawyer's notice within the periphery of the cancellation clause incorporated in the agreement.
1) You ought to have done a property search before getting the same deed registered. The bank should have done it.
2) You need to ask the seller to get the title cleared for you.
3) We need to see all documents including the cancellation of gift deeds to have a clearer idea about legal options available against the seller of any.
Hi, before purchasing a property you have to get a legal clearance then only you have to proceed.
2. You can't cancel the gift deed once it is executed and until and unless the order from the competent court.
3.The entire transaction is bad in law so issue legal notice to the seller and ask him to pay the amount if he fail to pay the amount then you have to file suit for recovery of money.
1. Gift Deed can not be revoked or cancelled unless it was a conditional gift deed,
2. Who are you buying the property from?
3. The property has all tye potential to be litigated,
4. It will not be prudent on your part to buy the said property,
5. Before paying the advance, you shuld have made search for the said property,
6. Ask for the refund of the advance paid by you and if he refuses, file a cmplaint case before the Consumer Forum (if the property is a house/flat/construction)