1.  Refunding the advance to the Purchaser depends on the wordings in the Agreement of Sale.

2.   The termination clause should have been equally balanced towards both seller and the purchaser.

3.    In the instant case, since the purchaser is backing out of the deal, some sort of forfeiture clause and breach of contract should have been there in the Agreement of Sale. Try to reason out with the purchaser to keep some money as forfeiture money by you, instead of paying the entire amount to the purchaser.

The terms of agreement are sacrosanct 

2) you are liable to refund the advance in event of cancellation of agreement 

The agreement has to be honoured. You should have stated that the advance is non refundable or a penalty amount.

Anyways if there is nothing of this sort then you have to return the money if you want to sell it to anybody else.

Otherwise you may file a suit for specific performance of contract between you and the buyer. The court will either make him purchase or pay penalty.

You should ha e got the agreement drafted by a lawyer 

you are liable to refund the advance money received by you 

It has a meaning if you want to go ahead. File a suit for specific performance. They'll have to buy your property unless they show that the loan hasn't been approved.

Hi, Ist you need to issue legal Notice and cancel the Agreement to Sale dated [deleted] and you need to mention in the Legal Notice forfeit the advance amount paid. 

You can state him the loss occurred to you in the said matter and if you feel any extra amount is there then you can refund him 

- Since, there is a clause for the termination of the agreement due to lapsing the date mentioned in the agreement for executing sale deed , hence you can send a legal notice to him for the termination of the agreement and inform the purchaser that the token amount has already forfeited by the seller. 

If you do not return the amount received by you towards advance then the buyer may drag you to court seeking refund with interest from the date of payment.

Moreover the clause in the sale agreement is clear that the seller has to return the amount if the sale agreement is cancelled.

You may issue a legal notice to the buyer intimating him about the cancellation of the sale agreement for the reasons that he failed to perform his part of the contract within tht e time stipulated and may inform him to collect the balance advance amount he paid after deducting some amount towards administrative expenses.

Your personal feelings has nothing to do with the prevailing law, you may have to obey the law of the land.

If you refuse to return the same you may be implicated in false criminal cases too besides filing a civil case for recovery of the said amount with interest and the litigation expenses. 

You can take a wise decision at right time. 

Dear Client,

                 Yes, you can cancel the agreement to sell as the purchaser has failed to comply with the terms and condition of the agreement.While liquidated damages clauses are generally enforceable, courts do not enforce penalty clauses.Penalty clauses are legally enforceable if they are based on the doctrine of reasonable compensation. This means that the compensation must be proportional to the act that caused the breach of the contract.The Supreme Court has observed that an agreement contrary to law cannot be enforced by the court in favour of plaintiff in a suit for specific performance, even if the defendant, who was also party to such illegality stands benefitted by it.An agreement to sale between the buyer and seller can go awry like any other contract thus it is important to have specific penalty clauses in the contract to be enforced in case either of the parties fails in carrying out obligations under the contract. The buyer or seller thus may seek damages for the breach of contract by enforcing penalty clauses when the other party defaults or may ask the court to compel the erring party for specific performance of the contract at its sole discretion. Therefore it is important to have specific penalty clauses in the contract because that acts as a deterrent from breaching the contract. Penalty clauses also come to the rescue when the actual amount of loss is more than the number of liquidated damages mentioned in the contract and thus to be awarded as a penalty.

Thanks & Regards