Paid half of the amount to buy a property now cannot pay rest amount

503 votes

It is not clear if there is any written agreement between you two, the buyer and the seller and if so, whether there is any forfeiture clause in it. Further, it is not clear if you are holding any valid receipt signed by the seller. Please clarify these points to enable me to render proper advice.

Advocate Swaminathan Neelakantan LawRato

879 votes

I guess you would have entered into Sale Agreement with the owner of property and paid 55% of the consideration as earnest amount. Now you can send a notice to Owner explaining your present situation and ask for refund of the amount, which was paid as Advance money. If he is not ready to settle then you have to see whether the owner has right to forfeit the earnest money in case of failure to repay the balance to consideration. If not you can approach civil court for recovery of money.

Advocate Santhana Lakshmi LawRato

785 votes

It is called specific performance in law.
As per the agreement both the parties to the agreement must act.Default to comply with the agreement is breach of contract,Normally the agreement is valid for six months, contrary to contract the agreement period may be changed.there will be default clause for the agreement , in default to comply with the agreement what the parties to the agreement do , whether to deduct some amount from advance,amount or Whether to lose advance amount as per the default clause the case comes to an end.
If the vendor refuses to pay the advance amount as per default clause , the vedee has to file recovery of possession suit.

Advocate B.A.Zahirudeen LawRato