• How to get back advance for illegal property given

Sir
 I have made a sale agreement and given advance of 3000000 and received all original document from the seller for legal opion , but in legal we found that our site no is 269 and nearby site is 268 and 270. But in reality when we measured we found that our nearby site no is 267 instead of 268. So there is a diff between document and actual. Now I want to cancel and get back the money . Pls advise what I have to do . I have got all original document from the seller. He says he will make rectification deed . Pls advise shall I proceed if he rectify it or if I want to get back my money what I have to do
Asked 7 years ago in Property Law
Religion: Hindu

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9 Answers

Though it is not safe to advise on title of proeprty without actually perusing the document, if it is trying error with regard to description or property number the same can be corrected.

The correction is made by registered deed of rectification.

So if the seller is ready to do this you can proceed to buy this property.

However do take final decision after taking advice from local lawyer by showing all the deeds to him.

Devajyoti Barman
Advocate, Kolkata
22822 Answers
488 Consultations

5.0 on 5.0

Deed of rectification has to be executed to rectify the mistake in survey number

2) on deed of rectification executed you can proceed with purchase of the property

Ajay Sethi
Advocate, Mumbai
94715 Answers
7530 Consultations

5.0 on 5.0

1) cancel the deal on grounds that as per legal opinion received title is not clear and marketable

2) consult a local lawyer

Ajay Sethi
Advocate, Mumbai
94715 Answers
7530 Consultations

5.0 on 5.0

If the survey no is different or it happens due to clerical mistake then rectification deed is ok for that. The same time peruse the other related document with regard to the land property. Check the prior deeds and title deed thoroughly with possession certificate and encumbrance certificate with land tax.If the seller has absolute ownership over the property then ready to purchase the property. Meet a local lawyer.

Or you can cancel the deal and ask the return of advance amount from the seller. If he is not willing to give then file a suit for getting the advance amount

Ajay N S
Advocate, Ernakulam
4073 Answers
111 Consultations

5.0 on 5.0

1. If the site that you intend to buy is wrongly mentioned in the sale deed of the seller then the rectification deed has to be executed in his favour by his seller i.e person from whom he purchased the property in question, failing which the title is defective. If he is unable to obtain a deed of rectification from his seller then you tell him to refund the advance. If he does not refund the advance then a suit for recovery will have to be filed in the civil court.

2. You also acted in a bizarre manner. When you go for sale of a property then as a buyer you first pay a kacha bayana i.e refundable advance of not more than a lakh or two lakh rupees to the seller to obtain the property documents from him for inspection. This is refundable if the due diligence results in a negative finding, whereas if the title is found to be clear and marketable then the agreement to sell is recorded and x% of the agreed sale consideration is paid as advance to the seller.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

You should have asked the seller to provide you a layout plan. You should have ascertained if this layout is duly approved by any local authority (BMRDA, Town and Country Planning Authority, or Gram Panchayath) if the site number is wrongly mentioned in the sale agreement, then the same can be rectified through a rectification deed as stated by the seller, but if there is discrepancy in the layout plan itself, then this cannot be rectified and will lead to multiple litigations amongst buyers, which would not be very encouraging to you in the future.

Take a second opinion from another advocate whilst highlighting this point as well, then take a considered decision on the next course of action.

If after this the consensus emerges not to proceed, then you can issue a legal notice seeking cancellation of the sale agreement and consequent refund of the entire advance amounts together with the agreed interest thereon.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Hi

1) It appears that your problem is a problem pertaining to boundaries

2) The factual position at ground is that the boundaries of the site are as follows: Your site survey number is 269 bounded by neighbouring site 267and site number 270

3) whereas the document states that your site number is 269 bounded by site survey number 268 and survey number 270

4) If you wish to proceed with the sale you should do the following

a) Get a FMB Sketch for the property you intend to purchase by Revenue officials.

b) A rectification deed by the seller

c) Panchnama of boundaries by neighbouring land owners

c) Paper advertisement asking for objections for proceeding with the sale.

5) If you wish to cancel the sale agreement and since you have the original documents from the seller you should do the following

a) Issue notices to the seller intimating him on the grounds(incorrect boundaries) in his agreement of sale and

b) Hence cancellation of agreement of sale and

c) Ask for refund of monies in full within 30-45 days and

d) Upon receipt of money handover the original documents back to seller.

6) You can also file a caveat in court in case you are apprehensive that seller might approach the court and

7) If you think that the Seller in order to frustrate you might alienate/sell the property to other persons, obtain a interim injunction against the seller from alienating/selling the properties till such time your monies are returned along with interest.

Hope this information is useful

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

Pls advise what I have to do . I have got all original document from the seller. He says he will make rectification deed . Pls advise shall I proceed if he rectify it or if I want to get back my money what I have to do?

You should insist the vendor to identify the property as per the the original title deed in his possession and notify you the correct position of the property proposed to buy.

If his title document also finds the same error, then he may be asked to produce a rectification deed executed in his favor by his original vendor.

You may give this instructions in writing and give him a time frame to produce the proper documents related to the title of the property, failing which you may inform him that the sale agreement stands cancelled and he is bound to return the advance amount with interest.

T Kalaiselvan
Advocate, Vellore
84915 Answers
2195 Consultations

5.0 on 5.0

If he dint made rectification deed then legally what I have to do to get back my 3000000 and regarding original document it's with me

You can initite legal action as suggested in my previous post in this regard and initiate recovery process through court if he is not responding properly.

T Kalaiselvan
Advocate, Vellore
84915 Answers
2195 Consultations

5.0 on 5.0

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