• Purchase of land for which mutation (Dakhil kharij) cant be done

We want to purchase a land in Ghaziyabad. Land cost will be appox INR 20 L. One Month back we had done Bainama with the seller and paid INR 50000/- with condition to purchase land after 2 months. But now we came to know that Mutation had not been done for the land. While checking with the Revenue department, we found that the seller had applied for the mutation in Feb 2016, but his application had been cancelled .Reason behind this cancellation is that the person who sold the land to current seller, had sold the area of land more than the actual what he was supposed to sell including sales to other purchasers. It means primary owner had sold the area more than the area what he actually had.   

 Please suggest if there is other procedures to go in the depth of reasons behind the cancellation of mutation and also suggest what types of efforts can be done in order to complete the mutation process for the said land.
 
We need experts’ advice whether we should purchase the land or not. If we purchase the land what adverse effects we may face in future.

We feel that the seller party may deny to return the bainama amount (INR 50000/-). If this situation occurs, please advise us the procedures which we can follow to get our bainama amount back from the party.

Please help.
Asked 6 months ago in Property Law from Unnao, Uttar Pradesh
Religion: Hindu
under no circumstances should you purchase the land 

2) land has been sold by original seller to multiple purchasers of area more than he possesed 


3)title to land is not clear and marketable 

4) cancel the deal and seek refund of purchase price paid by you 

5) the seller is bound to refund as title is not clear and marketable 

6) if seller refuses file suit to recover earnest money paid by you with interest 
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
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 Please suggest if there is other procedures to go in the depth of reasons behind the cancellation of mutation and also suggest what types of efforts can be done in order to complete the mutation process for the said land.
 
If the land revenue department has rejected the application for mutation by the vendor for the cited reasons, it is a very serious issue.  It can be construed that the vendor though purchased, he is not in possession of the entire  property now offered for sale because his vendor has sold him the landed property which was not physically available nor he was authorised to sell nor was having any title to the property he sold, therefore your vendor is also trying to sell the property for which he is not having proper title.  Have you physically verified and confirmed the property?
 if not then ask the vendor to identify the property to be sold and you may have the survey report of the property to find out whether the property now offered for sale is his property or not before venturing into this purchase.  You dont have to rescue your vendor for his mutation problem, he only has to clear the problem and give you the mutated records.









 
We need experts’ advice whether we should purchase the land or not. If we purchase the land what adverse effects we may face in future.

You are trying to purchase the land which is physically not available or it has been sold to somebody already or it is somebody else's property. 
So what is the use of purchasing the property which is not available and then run behind police station, court for cases in this regard.








We feel that the seller party may deny to return the bainama amount (INR 50000/-). If this situation occurs, please advise us the procedures which we can follow to get our bainama amount back from the party.

You point out this irregularity and demand the return of the advance amount, if he refuses, with the available evidence, you should issue a legal notice demanding him to return the amount or else you can initiate recovery suit besides lodging a criminal complaint for the offences of cheating.


T Kalaiselvan
Advocate, Vellore
13969 Answers
127 Consultations
5.0 on 5.0
Purchasing a land the mutation application of which was cancelled is an invitation to long drawn future litigation, hence it should be avoided. 
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
Issue a legal notice to the seller to refund your bainama. If he does not do that then file a suit for recovery of money.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
1) obtain in writing from seller that he would refund advance money on X date 

2) I presume you have placed it on record that you are cancelling deal as title is not clear and marketable 

3)if seller fails to refund file suit to recover the advance amount of Rs 50000
Ajay Sethi
Advocate, Mumbai
23173 Answers
1217 Consultations
5.0 on 5.0
The amount can be returned even after 2nd July 2016. The agreement should be cancelled through a lawyer's notice. A suit for recovery will have to be filed in the civil court if bainama is not returned. 
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
5.0 on 5.0
1.  You get the assurance made by the party in writing so that he stands by his undertaking.


2.  The question is about refund and not the bayana


3.  You have to put pressure on him and take an undertaking from him that he will be responsible for any legal action if he fails to return the amount



4.  You can proceed for recovery agaisnt him through court of law.
T Kalaiselvan
Advocate, Vellore
13969 Answers
127 Consultations
5.0 on 5.0

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