• Paid amount for house purchase

In the process of house purchase I gave 1 lakh by cheque to house owner and took terms and conditions on a paper duely signed by owner (not a stamp paper). The house did not had proper documentation hence we did not move forward. Now house owner denying to repay the amount. 

The note on the paper doesnt specify forfeiture of paid amount by the buyer. It specify how much is paid and how it is paid and when next installs of amount will be paid.

Being paid through cheque can i launch a case against house owner for amount recovery ? and if yes please advice the initial procedures to move on this case. If not please help me with other alternatives.
Asked 2 years ago in Civil Law from Recovery of amount, Karnataka
1) you should send legal notice to seller that you had paid rs 1 lakh as advance for purchase of the house by cheque 

2) however as title to property is not clear and marketable you have no option but to cancel the deal 


3) ask seller to refund rs 1 lakh paid ad advance within period of 7 days of receipt of notice failing which you would be constrained to take legal proceedings for recovery of rs 1 lakh with interest 
Ajay Sethi
Advocate, Mumbai
26204 Answers
1424 Consultations
5.0 on 5.0
Though the agreement made on a piece of paper does not acquires legal significance, you may file a suit for specific performance of contract with an alternate prayer to refund the amount received by the vendor towards advance  of the sale consideration amount.
Firs tissue him a legal notice expressing your ready and willingness to perform your part of contract and ask him to fix a date and time to perform his part of contract to execute the sale deed in your favor after receiving the balance of sale consideration amount and register the same  at your expenses. Or
alternately you can file a money recovery suit to recover the amount held by him after failing to sell the property as agreed.
The piece of paper on which the sale agreement was recited may be used as a receipt for the amount received by him. 
T Kalaiselvan
Advocate, Vellore
16576 Answers
153 Consultations
5.0 on 5.0
Hi, you can file a suit for  recovery of money on the basis of amount paid by way of cheque.

2.Before filling suit you have to issue a legal notice and there after file a suit.

3. It is better contact local advocate.
Pradeep Bharathipura
Advocate, Bangalore
4185 Answers
149 Consultations
4.3 on 5.0
1. You did not carry due diligence before giving the advance amount.

2. If the forfeiture has not been specified in the terms and conditions then you can file criminal charges for cheating against him. In addition to this you can also file a case for recovering the amount with compensation against him.  

3. Prior to filing the case you may issue a lawyer's notice to send a warning to him.
Ashish Davessar
Advocate, Jaipur
19256 Answers
487 Consultations
5.0 on 5.0
You have to file cheating case against him in the jurisdictional Police Station, stating that even though he new about the incomplete documentation of the property he offered to sell, he falsely claimed that he was the absolute owner and decieved you to pay Rs. 1,00,000/- as advance. 
Sandeep Hegde
Advocate, Bangalore
368 Answers
100 Consultations
4.8 on 5.0

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