Dear sir Agreement to sale was made on 14/09/2016 valid up to 12 month of 2016. Agreement to sale was below the valuation of property. I availed home loan on that agreement and paid margin money through check. I had to pay the black money, which is also raised through loan before registration. Now because of demonetization it is not possible and this period of demonetization will last when my agreement to sell will expire. And builder is now not accepting that money. What are the options for me? Cancel the deal? Bargain with builder? or make another agreement?
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You have done wrong and hence must be prepared to face it once the govt takes steps to counter this time of black money transaction.
So you can go for cancellation of deal and pray that developer returns your money.
Else you would be in great trouble.
You better buy some time so the chaos calm down and you can arrange money.
1) cancel the deal
2) take refund of money paid by you
3) always insist on cheque payments
using black money is a crime in India now.
all the transaction should be legal and if you have black money then now it is very difficult to used that money because nobody will accept that type of money.
which type of black money you have? have you cash? unaccounted money by which you want to purchased the property?
Dear Sir Actually 20% of the agreement to sell was paid through cheque rest 80% is also by cheque. This portion + stamp duty is white. Problematic is the amount that is to be paid in cash, over and above the agreement to sell and it is not paid yet. However this amount is earned by me through legal sources but is to be paid to builder in cash so that he doesnt need to pay tax. My query is that as agreement to sell is already done and cash portion is yet to be paid which he cant accept now because cash is not legal tender. Now can I bargain on this portion and make him either to reduce it or to accept whole amount through cheque. Given present situation he will definitely go for cheque payment but on that he will have to pay tax also. So given above situation can I bargain on that portion so that we both will be in win win situation.
you can bargain with builder to rereduce additional amount payable by you
2) you should never agree to pay in cash .
1. You have raised the said Black money through loan all in thousand or five hundred rupees notes.
2. Deposit the same with Bank disclosing that it has been taken on loan.
3. After that issue check to the builder for the said amount and he has to accept it since black money transaction will be stopped in India for good.
4. You can also pay exactly what has been mentioned in the agreement and if he refuses to register the sale deed after receiving the agreed amount, you can file a complaint case before the local District consumer dispute Redressal Forum alleging deficiency in service and unfair business practice praying for an order up on the builder to register the sale deed within next 15 days or pay a penalty of Rs.1 K per days delay with interest, damage and cost.
5. If you do not want to antagonise the builder, cancel the agreement and take back your entire amount paid to him.
1. You can further bargain for settling the deal at the price what has been mentioned in the agreement for sale.
2. If he refuses, approach consumer court as suggested in my earlier post.
3. The builder may agree to your proposal since the real estate price is expected to fall sharply now after the black money source has been made to dry out.
What are the options for me? Cancel the deal? Bargain with builder? or make another agreement?
Actually the government's policy to demonetize the currency was taken for this purpose only i.e., to curb the black money and related activities.
It is better you cancel the sale agreement instead of getting into unnecessary troubles.
If the vendor is accepting the payment by cheque for the remaining amount that was supposed to have been paid by cash, you can proceed.
If he is not willing to accept your proposal, then you can very well issue a legal notice to him to enforce the contract of sale agreement since you have already paid the entire sale consideration amount by cheque payment mode.
If the vendor does not comply with the demands made, you may file a suit for specific performance of contract against the vendor to enforce the sale agreement.
You can certainly bargain with him but if the bargain is not successful then either the deal is to be cancelled or the remaining amount is to be paid through cheque/dd and the seller should be ready to pay the tax. It is as simple as that. There is nothing which stops you from bargaining.
