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Selling Property & Took Advance Money

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Selling Property & Took Advance Money

Last updated: July 22 2010
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  • Selling Property & Took Advance Money

    Hello,

    I jointly own a flat with my Father in Mumbai in a 16 year old building. I am the first owner. I am currently resident in Chennai. I wanted to sell this flat and buy another one with lift and water facility. I looked around and found a two bedroom flat to my liking and paid a token advance and took the photocopies of the legal documents to avail a loan. Whilst the loan was under process, I put my existing flat in the market for sale. And I found a buyer for my flat through a broker. After negotiating the price I verbally agreed to sell my flat to the buyer and my father took a tken advance of 50k and signed an MoU which states the buyers details, details of the flat, price, and settlement date as 31 July 2010. My father agreed to this settlement date under the impression that our new flat deal will go thru. But the flat which I was planning to buy was already mortgaged with a bank, and my home loan financing bank refused to disburse the loan unless the mortgage is cleared. The seller of the flat refused to clear the mortgage which led to the cancellation of the deal.

    Now my problem starts. My father had committed the on the settlement date of 31 July 2010 which meant that I will register my flat and handover the possession of the same on or before that date. Apart from initial token advance, the buyer of my flat also transferred some money into my bank account and also paid somemore money to my father for which he obtained reciepts. Totally thebuyer of my flat has paid almost 65% of the agreed sale value.

    Now since my flat pruchasing deal got cancelled I am unable to honor the settlement date committed by my father. I informed the buyer of my flat that I will be unable to register the flat and hand over possession of the same as per the settlement date in the MoU. The buyer refuses to see reason and is threatening me and my family that he will come with his family and luggage and forcefully occupy our flat. He also threatening that he will also approach the court and obtain a stay against my flat.

    My parents are senior citizens who are not keeping good health. The above situation has put me in a deep state of distress and worry. I have no intentions of not selling the flat to the above buyer. But I cannot register and handover the possession of the flat to the buyer until I find another flat to buy.

    The last three days my parents are running from one apartment buiulding to another in order to find something suitable for our needs. But none of the owners are ready to handover posession without a 30-60 days notice period.

    I request the readers to guide me with their valuable suggestions within the frame work of legalities.

    Thanks in advance.
  • #2

    #2

    Re : Selling Property & Took Advance Money

    Why do I feel there is a lot of unsaid things in this story? 31st July?? That's hardly 10 days from now! No wonder the buyers are threatening to come with luggage and all!

    Firstly, I doubt how much ground an unregistered MOU holds. You should try to solve this situation diplomatically, than legally. As you said, your parents will take unnecessary pressure, and you will lose your mental health by this. When did you intimate your buyers your decision? Was it within a reasonable period, or did you inform them 2 weeks ago, that you can't honour the deal? And why is it that they are so pressed to start living from 31st July?!

    Following points may help you:
    1. Offer them to refund their investment + token amount + brokerage with some interest, if you want to cancel the deal
    2. If they are staying on rent, offer to share half the rent till you find property

    3. If at all their rental lease is expiring, offer to speak with their house owner for extension/offer some rental yourself (too much hessle in second option!)

    3. If they are doing gundagardi and telling they will come and take possession, give a complaint to police, file NC and speak with some lawyer. As long as the house is on your/parent's name and you have possession, no body can come and throw you out based on unregistered/no-notory done documents. Case WILL be filed, but by the time it comes to hearing, you would have got your new house!

    I feel for your pain friend. Don't lose patience and hope. It can't be said that yours was no fault at all, and only front party is pushing it. Try to think from their side as well, the more you will try to resist, the more energy you will lose! After all, this is a home we are talking about, not a commodity. Speak with them and tell, that leaving a house in happy memories is of atmost importance, as is their taking a peaceful and happy possession. Work together towards your problems, not against, because your problems are such that either both parties will suffer, or both will prosper!

    All the best!

    EDIT: Why couldn't you just transfer the 2BHK's ongoing loan to your name?
    Last edited by ani_meher; July 21 2010, 04:43 PM.

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    • #3

      #3

      Re : Selling Property & Took Advance Money

      I'd say try all the options ani_meher suggested and if the buyer still insists on moving in on July 31st, find a rental apartment for your parents. The buyer has promptly paid 65% of the money, so he has the right and you have the obligation to honor your commitment, notwithstanding problems surrounding your new purchase.

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