Sale agreement expired but buyer still not getting loan approval
Sir I have taken token amt of 2lacs from buyer & did the registration for 31,25,000/- value for the same. As per buyer request the agreement made as follows 2lacs rtgs which I received, 2lacs post dated cheque & 2.25 lacs cash Which I haven't received for his loan purposes. For cash transactions of 2.25 lack I have received a mou on 100/- stamp paper that says that I haven't received the cash this is only for loan purposes. Now 60 days due date for sale already passed but the buyer still didn't get the loan approval now still he's asking me to wait. But I can't wait any more as my job is in merchant navy. I don't have anybody to trust & give them my power of attorney. Same time I have paid all banks installment with the token money now I don't have any money to repay him. Pls suggest me a way as I'm in big trouble.
Asked 2 years ago in Property Law from Greater Mumbai, Maharashtra
1. Why did you mention in the MOU that the cash is for loan purposes? Insertion of this clause in MOU can actually prove that you took money from the buyer as a loan and you are liable to repay it with interest.
2. If the time for execution of sale deed has been mentioned in the MOU the buyer has to adhere to the same. It is incumbent on the buyer to obtain the loan approval prior to the expiry of the time for the execution of sale deed.
3. If the buyer fails to pay the balance amount within the time period for execution of sale deed then you may issue a legal notice for cancellation of MOU to him. The token amount is ordinarily forfeited, but this is subject to an agreement to the contrary.
Send a legal notice to buyer and decline your intention to continue the agreement for sale.You express your ready and willingness to executing the sale deed with in 10 days soon after getting the notice.If not you are not ready to sell the same and consider as the buyer is withdrawing from sale. Kept the advance amount in your hand, up to a claim from the buyer through process of law via court. If possible give a power of attorney to your wife or close relative only for appearing, engaging a lawyer and contesting the case on behalf of you. (OOA is not for sale only for legal purpose)
1) if the purchaser is taking loan for purchase of flat you should have insisted that purchaser obtain loan approval before agreement was entered into
2( you can cancel the agreement if purchAset had failed to obtain loan approval and refund advance money received by you
3) deed of cancellation has to be duly registered with consent of the parties
4) if you are not in position to refund advance money extend the period for making payment by 3 months
If the sale agreement period has expired and still the buyer is not showing any interest in getting the sale deed executed and registered in his name, you may issue notice to him stating that aspr the agreement conditions the contract stands terminated, and the advance amount is forfeited (if forfeiture clause is incorporated as condition in the sale agreement). However, it becomes your duty to refund the advance amount after deducting the expenses incurred.
1. Was there any agreement for sale entered into by and between your proposed buyer?
2. Was there any forfeiture clause in the said agreement if consideration is not paid within the stipulated period?
3. If yes, then send a letter to the said buyer cancelling the agreement and forfeiting the advance amount paid by him,
4. However, please note that giving a false statement to bank stating that you have received the cash for loan purpose is not legal at all.