Hi,if the initial agreement has a clause for forfeit of advance amount ,then you cannot ask for the refund..Kindly share the initial agreement for better understanding
Cancellation of Sale Agreement
Hi, I have paid a nonrefundable advance of 2 Lakh INR to purchase a property worth 35 Lakh in Secunderabad Cantonment Area. The property is one floor in a stand alone building which doesn't have a prior approval as it is allotted by Govt long time back. Now I realised that it is a very time consuming process to get an approval for a building permit in Cantonment as it is managed by the Secunderabad Cantonment Board. I don't want to go through this hassle (which was neither made clear by the owner before selling) of getting the permit even after paying such a hefty amount for 10 year old building. How do I go about getting the agreement canceled now and get my money back? Would greatly appreciate the support. Thanks, Srinivas
Asked 5 years ago in Property Law
Religion: Hindu
15 Answers
Send legal notice for cancellation of agreement and refund of advance.
Reason - concealment by seller that property has no approval and approval process will take long time and no surety.
Hence completion of agreement is possible
You can cancel agreement by mutual consent
2) it s necessary to peruse agreement entered into by you to advice
3) there must be clause that in event you fail to pay balance payment what would be consequences
Hi, These are the agreement terms/clauses: The Vendor has declare that if the Vendee has change the decisions change the said advance will not be refundable. The VENDOR hereby declares that the said property is free from all encumbrances, charges, liens, dues demands, claims, and is free from all kinds of litigation whatsoever. The VENDOR hereby declare that he is the solely entitled to convey the said property in favour of the VENDEE or his nominees the said property hereby agreed to be sold and conveyed to the VENDEE. That the VENDOR shall be bound to indemnify the VENDEE and her legal heirs against any loss that VENDEE may be put to by reason of any defect in the title of the VENDOR and the VENDEE shall be entitled to recover from the VENDOR all such expenses the VENDEE may be put to by reason ot any litigation concerning the title or possession of the said property mentioned in the Schedule. The VENDOR further undertakes to execute a registered sale deed in favour of the VENDEE or on his nominees, after completion of the balance sale consideration.
Asked 5 years ago
You will not get refund if you cancel the agreement
advance payment made would be forfeited
Prior approval from contonement board itself a condition impose on property.
Property is not free one.
Everything depends on what is in the written agreement entered between you and the seller. If there is a provision for the repayment of advance and he denies you can take legal steps for its recovery.
in the agreement it is mentioned that the advance amount will be forfeited. if you cancel the said agreement then You will not get adv money back.
In my opinion, before entering into sale agreement, the vendor is required to get written approval from the SCB which is not there. Hence, the sale agreement without the permission of SCB is void. Contact a local lawyer and issue a legal notice withdrawing the sale agreement and refund of earnest money. Secondly, adding the clause "The Vendor has declare that if the Vendee has change the decisions change the said advance will not be refundable" has been added to cheat and play fraud and requires criminal action as well.
If the agreement has clauses of non refundable clause it may be difficult to get the same from him. It depends on averment you agreed in such agreement
Most of the people don't bother about obtaining proper legal opinion before venturing into the purchase of an immovable property or investing into it.
Now this has costed you dearly.
Well whose responsibility is it to obtain permission from the Cantonment board, the vendor or the buyer.
If it's the duty of the vendor then you may communicate in writing to the vendor your decision to cancel the agreement for sale since he failed to provide the property documents as well as the permission from the authorities concerned in this regard and demand return of your advance amount.
The legal notice should to be sent to him by registered post.
This sale agreement being an unregistered sale agreement it will not be enforceable.
However this can be produced as documentary evidence for having given the money to him.
Hence you can file a money recovery suit to recover the amount through civil court if he refuses to return the advance amount.
- As per rule , if the buyer backs out from the deal, the seller has the right to forfeit the token money paid. With respect to such forfeited token money,
- However, the Supreme Court has declared in the case of Fateh Chand (supra) , that a mere breach of contract by a buyer does not entitle the seller to forfeit the amount as received, unless, loss is proved to have been caused to the prospective sellers.
- Hence, if you are cancelling the agreement entered with the seller , then the seller will not have suffered any loss from the same , and so the seller cannot forfeit the paid amount by you.
- Further, as the said agreement having a clause that , the VENDOR shall be bound to indemnify the VENDEE and her legal heirs against any loss that VENDEE may be put to by reason of any defect in the title of the VENDOR and the VENDEE shall be entitled to recover from the VENDOR all such expenses the VENDEE may be put to by reason ot any litigation concerning the title or possession of the said property mentioned in the Schedule, and further the seller has concealed the true facts of the property from you , then also you are liable to get refund of your paid amount legally.
- You should issue a legal notice to the seller after narrating his above said faults and concealment , and thereby ask him to refund the full paid amount with interest.
- If no response, then file a recovery suit against him before the court.
Good luck and dont forget to rating Positively.
Dear Sir,
You are suggested to ask the vendor to get the clearance and if not supported by him, you may cancel the agreement asking to refund the amount with interest.
1. Why did it not occur to you before signing the agreement that the process of obtaining approval is going to be a time consuming one?
2. Now you are covered by the clauses extracted by you.
3. There is no default on the part of builder. Hence, if you back out now you will forfeit the advance money paid by you.
4. Property transactions are not to be done in such a casual manner.
1. You should send a legal notice to seller for cancellation of agreement and refund of money on ground that building in which the flat is situated doesnt have approvals from cantonment board and this fact was not disclosed at time of agreement.
2. If he refuse to return the money and cancel the agreement then you should file case against seller for cancellation of agreement and refund of advance paid.
