Refund of Advance paid for the purchase of plot
We have made a deal with a site developers to purchase a plot at Rs 20 Lacs and paid an advance of Rs 2.0Lacs ( Rs 50,0000 in cash and Rs. 1.5 lacs in the form of cheque). Agreement of sale is not yet made. Now the property prices are fallen by 40% in that area due to demonitisation and we would like to cancel the deal. How likely the developer pays us the advance. If the developer neither wants to pay the advance nor reduce the price to the current market price, how we can proceed further
Asked 1 month ago in Property Law from Visakhapatnam, Andhra Pradesh
Since there is no agreement in writing the clause of cancellation becomes evasive and both parties can take advantage of this.
Do note falling price of proeprty is no ground to cancel the agreement.
So you are in back foot and you may find it hard come up with reasonable excuse.
Hence I would advise you to negotiate the price and come a amicable agreeable deal,
That is best suited for both of you.
What were terms of booking entered into with builder ?
2) builder would be entitled to forfeit the 10 per cent advance payment in case there is such a clause in the booking form
3) if there is no such clause you can cancel booking and seek refund
4) if builder fails to pay file complaint against the builder before consumer forum and seek refund with interest
The amount you have paid is a substantial part of the sale consideration, therefore you should not have paid it unless the sale agreement was signed. Since the agreement to sell has not been made you can cancel the deal by serving a lawyer's notice to the developer and seek the refund. If he does not refund it then a suit for recovery of money will have to be filed in the court.