11 November 2020
I have agreed to purchase a commercial office space for total value amounting to 30L. In which we both party verbally decided that the agreement should be done of 20L and 10L should be given in cash.
The seller told that the first cash transaction should be completed and then remaining 20L by cheque.
So I gave the seller 50K cash and he gave his office documents xerox copy so that I can get them verified with lawyer. But due to some work pressure I delayed that process and before getting verified the documents I gave another 4.5L in cash. So total 5L.
I have written proof that he has received 5L in cash.
But now when we get the documents verified with 2-3 lawyers and also in one bank, we came to know that the title is not proper and the property if some kind of not legal or not have the actual permission for commercial space or like that and even if we purchase now then in future it can not be sold out and the loan can also be not given on that property.
So we cancelled the deal and now seller is paying only 2.5L cash and saying that other 2.5L will not give.
So sir I want to know that is there any kind of provision or legality that in case of cancellation of deal by buyer due to legality of the property seller can not forfiet any amount or something like that?
12 November 2020
Yes, such legal provisions are there, in case of agreement entered in writing and amount paid through bank. You can't enforce legally with oral agreement and cash payment
CAclubindia
