1) you should send letter to seller that title to property is not clear and marketable

2) mention that you had approached bank for loan and bank has informed you of inability to disburse loan in absence of legal heir certificate

3) inform seller that inspite of repeated telephonic reminders he had failed to provide legal certifcate . hence you have no option but to cancel agreement and seek refund your advance money paid by you

4) if he fails to refund file suit to recover Rs 5 lakhs advance paid by you

1. The opportune time to conduct due diligence with respect to the marketability of the title is before and not subsequent to the execution of the agreement to sell. If there is no clause in the agreement to sell which mandates that the current owners i.e the daughter and widow of the original owner should obtain a legal heir certificate and deliver the same to you then they have the right to either forfeit the advance amount in terms of the agreement or sue you for specific performance to execute the sale deed.

2. You may issue a lawyer's notice for cancellation of agreement to sell to the sellers to seek refund of the advance amount, which will be governed by what is stated in the agreement itself.

You should issue a legal notice to the vendor demanding the legal heirship certificate of the deceased property owner. If he fails to produce the same you should inform that you are cancelling the sale agreement for his failure to produce the essential documents to prove the title hence he is required to return the advance amount with interest immediately or else he will be dragged to court for recovery process.

After that you can file a money recovery suit agaisnt him on the same grounds and also file a petition in the same suit requesting for attaching the property for security purpose before judgment

1) as purchaser your decision that tithe is clear and marketable is final

2) seller cannot forfeit advance paid by you as tithe is not clear and marketable

The title to a property flows from the sale deed thereof. If the owner has died and the property has devolved through succession then the clause which you have extracted stands satisfied. The clause cannot be interpreted to mean that they have to produce legal heir certificate. It was wrong on your part to sign the agreement prepared by the agent.

However I can find one clause which seems to be most relevant in my case which states in the agreement that. "This agreement is subjected to the title of the property being approved by the purchasers after perusal of EC and his opinion shall be final". What is the impact of this clause, will I get justice in my favor ?

This is the one which will apply for the production of legal heirship certificate because until then the title of the property shall not confirmed upon the intestate death of the original title holder/owner.

or still does it considered to be forfeit if I cancel the agreement? Please be advised this agreement was prepared by real estate broker who felicitated this deal and he is relative of the Vendors.

You need not worry about any clause or anything, the rule or law in this regard is very clear, if you dont get justice, the court will provide you that. The vendor may be the relative of the real estate broker, that does not means that he will indulge into illegal activities.