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Whether seller needs to pay back advance if buyer withdraws from sale
11-Aug-2023 (In Property Law)
This is regarding a unregisterd sale agreement made on 2nd April 2016. Here I am the seller, below were the few conditions in the agreement., - Agreement made on 2nd April 2016 - Sale amount considered 60 lakhs - Buyer made an advance amount - 50,000/- - Agreed to pay 25 lakhs on last week of May 2016 - Balance amount with in the period of agreement (Jan 2017) - Buyer communicated he is withdrawing from the deal on Feb 2018 - Buyer now asking for the advace amount paid 50,000/-. There is one condition :- In case the buyer herein defaults to perform his part of agreement the seller will be entitled to forfeit the advance sum paid. Query:- Whether seller need to pay back advance amount by any means ?
The cancellation of earnest money depends on the terms as mentioned in the sale agreement. That is the recital in the agreement for sale is very important. What will reflect in agreement with regard in the event of failure of purchaser to pay balance amount within stipulated period advance money paid would be forfeited or ___% is taken as cost for damages. whether sale agreement contains a clause that in the event of failure of purchaser to pay balance amount within stipulated period advance money paid would be forfeited. If so seller can claim the amount as his damages . Even though the best thing is to cancel the agreement and settle the matter amicably.
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Adv. Ajay NS
Ernakulam | 5+ Answers
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The law does not sanction unjust enrichment. if the seller had suffered any loss or damage because of the withdrawal from the promise, he is entitled to realise that much of the amount. Has the buyer asked the return of amount in writing?
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Adv. P Venu
Vaikom | 5+ Answers
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