You need to file a suit seeking compensation for injunction not to create third party rights in the said property by seller so that he settles with you
Seller not closing deal after accepting token, offers to return it
Facts of Case (based in Bhopal, Madhya Pradesh): 1. I am buyer of a residential plot (in Bhopal, Madhya Pradesh). 2. Signed deal with seller on a notebook paper (Rs 1.5 crore payable in 2 months) and 1 lac cash given as token. I was not physically present with the seller when he signed the paper, everything was done through brokers. 3. Seller refuses to sell the plot, offered to return that 1 lac to the broker. It has been over 10 months but i have not taken cash back. 4. Since the agreement is not in a proper format and not registered, I consulted a local lawyer and he said as per MP state property law, 1% stamp duty (with 10x penalty due to delay comes around Rs 10 lacs) needs to be paid first in order to file a court case to claim the property. Is this true? 5. My broker offered Rs 1 crore in cash to the seller in a whatsapp message and rest of the payment (Rs 50 lacs) in check. Buyer saying that since cash was offered, he is backing out and using brokers whatsapp message as proof of cash offer in property exchange. 6. The deal was done through brokers who got the sellers signature on a notebook paper confirming the deal, gave 1 lac token to seller and later i signed the same paper with my name below. The broker did not put my name (buyer) in printing when the seller signed on it. I added later on at the bottom. Buyer claiming that since deal was done with broker and when signed, buyer name was not there, there was no deal between buyer and seller, only between seller and broker, hence I as buyer, cannot file claim, how true is this? 7. IF i file court case against seller, can the seller ask me to prove in court that at the time of signing the deal (10 months back), If i had funds in my bank account to purchase this property? Can this point be held against me or can judge overrule this requirement? because, i will not be able to prove it, since most of the payment was through cash mode. 8. The seller has filed a police complaint against the broker for fraud, that he signed a service note/exclusive contract with broker to find a buyer based on the mentioned terms and price, but that was not an agreement of sale, just because someone signed at bottom of it as a buyer, does not make it an agreement of sale. What do you recommend i do? How do i make my case stronger with least amount of court fees. Based on Bhopal, Madhya Pradesh
Asked 4 years ago in Property Law
Religion: Hindu
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12 Answers
Based on facts of your case, You file suit for temporary injunction against seller under order 39 C P C 1908.
Thereafter suit for permanent injunction order and title under section 34 and 38 of Specific Relief Act against seller.
Accept refund of Rs 1 lakhs and close the chapter
2) you cannot offer Rs one crore by cash .
3) you can file suit for specific performance if you so desire
4) non registration of agreement for sale is not fatal to your case
5) you should have funds in bank account to pay for the property
6) amicable settlement is best option
1. Unfortunately & Legally, the buyer has no legal right to litigate, based on the mentioned events, more so specifically since a plain paper receipt has absolutely no legal value, in a court of law and such plain paper for mentioned amount is in itself a prosecutable offence under various laws including the Income Tax Act. Any deal related to immovable property MUST COMPULSORILY be stamp duty paid and registered to have a legally enforceable liability, during times of dispute in court.
2. As a buyer, you are advised to take back your token amount, since Seller may allege intimidation, cheating, nuisance, fraud, conspiracy, breach of trust, etc.... against the broker and the buyer party.
The lawyer is asking you to pay stamp duty so that the agreement can be read in evidence for collateral purposes. Without that the court will not even look at it. But despite that the agreement not being registered will itself cause a lot of problems and make your case weak.
It is advisable to take back the token money since the agreement is unstamped and unregistered however if you absolutely without any compromise want to go ahead, you may file a suit for specific performance and make it stronger by paying stamp duty on agreement if you want although it is better not to pay duty initially and wait for the court to direct you to do that. You should also seek injunction and hope that all this may cause the buyer to settle the matter with you and enter into compromise as per your desired terms.
The agreement to sell was made on a paper. It had no value. he has no obligations to sell you the property.
Stamp dutu has to be paid based upon the current market value. But now it cannot be registered as the other party will not come to the registrar office.
The seller did a deal with you through the broker. But if you name is not mentioned he has a case.
I think if he doesn't want to sell the property you should back down.
He may deny that he ever met you.
Serve him with a legal notice and than file a specific performance suit against him
Dear Sir,
The things suggested by your advocate is true as regards to court fee and it is also informed that the said agreement is not stronger on your part as you were not directly involved with the deal. Rather, you may screw the broker and for duping you by his whatsapp messages.
- Yes, as the unregistered agreement /contract was between the broker and the seller , hence only after writing your name below , did not give you a right to claim .
- If , you file a specific performance suit before the court to direct the seller to execute sale deed in your favour after receiving the balance amount , then the suit should be based on agreement to sell , and should be registered as per law.
- Hence, in the absence of any agreement with you , you cannot file a case against the seller.
- You should take refund your paid amount from the seller .
- If he refused to return , then you can file a recovery case on behalf of the brother and payment proof .
you can file case for Specific performance of the contract. that means for getting the registration of property through court.
1. Yes you need to pay court fees for filing the suit against seller.
2. Yes seller is right he didn't finalised the deal with you the deal was finalised by broker in behalf of you and that too without your name.
3. Yes his advocate can ask proof of funds available with you for consideration of property.
4. You should take back th advance paid to seller through broker and look for another property.
It's not at all a legally valid sale agreement.
It cannot be enforced in court of law. You can seek for return of your money by issuing a legal notice and a money recovery suit before court competent.
