Hello Sirs, We got into a deal with the owner to buy his flat. The owner said he has a loan with L&T Finance and needs the part payment from us to close the loan and then will give us the flat papers. We signed a MoU which stated the said amount transferred to him and in the event where is he is not able to produce the papers by Apr end the deal will be cancelled and he will pay 5 lacs in addition to the advance paid to him. It is June end and he has not been able to close the loan and provide us the papers. Since we had sold the flat we were living in we shifted to his flat in May. It has caused mental agony as he is not meeting us. Please provide me your legal advice.
You took a very complicated and risky decision to sell your flat and move into his flat while he hasn't given you any assurances. He has stiil not met you.
File a suit for specific performance of contract immediately in the civil court so that youbmay ar least recover your money.
We have met him and signed the MoU as well. Now since he isn't providing us with the documents citing that L&T Finance is delaying it he is avoiding meeting us since past months. Does the memorandum of understanding not hold good? Can that not be honoured?
1. Make enquiries in L & T Finance and find out as to, whether the prospective Seller has cleared the loan or not?.
2. If the prospective Seller agrees, you can directly go to L& T Finance and close the loan, out of the money reserved for sale consideration.
3. Or else, if there's Agreement of Sale between you both, then file for specific performance.
4. Or send a legal notice to the prospective Seller to return your advance amount + the agreed amount, as there has been Breach of Contract from his side.
Is that registered or not? A MOU can and should be honoured. Is it in the style of an agreement? If it is then file a civil suit.
A suit can be filed on the basis of the MOU.
A legal notice can be sent to the opposite party but I don't think he'll respond. a civil suit has to be filed.
Issue legal notice to seller to furnish flat papers and execute registered sale deed in your favour
2) if he refuses file suit for specific performance against seller
MOU is binding on parties
MOU is binding on both parties. If a MOU fulfills all the conditions laid down u/s 10 of the Indian Contract Act, 1872 then, such a MOU should be treated as a contract as defined in section 2(h) of The Indian Contract Act,In the case of breach of contract you can file suit .
This seller seems to be a crook.
Though you can file civil suit for specific performance of contract , it takes lot of time.
So lodge criminal complaint so FIR can be registered.
Dear Sir,
1. This is a clear case of consumer exploitation.
2. You may file a case (even online) under the State Consumer Forum for compensation. Once a legal notice has been served to him, he shall be forced to act upon it.
3. You may also apply for a civil suit for restitution of damages under the Code of Civil Procedure. However, the court is not considering cases that are not urgent in nature due to the pandemic and you may have to wait a long time for justice. Therefore, best to file a case under RERA or consumer forum.
God Bless
Thank you
- You can lodge a compliant against him for the offence of cheating and breach of trust
- Further , you can send a legal notice and ask to register the flat in your name or to refund the amount as mentored in the MOU.
- Further, if no response, then you can file a Specific Performance suit against him.
1. You have followed a wrong procedure without taking L&T Finance in to the loop and making the payment of the loan outstanding amount to them while collecting the original Deeds from them.
2. For giving you photocopies of the documents, it was not required for him to close the loan account.
3. It appears that the seller has usurped your advance amount paid to him.
4. File a complaint case before the local District Consumer Dispute Redressal Forum or RERA Tribunal against him alleging deficiency in service and unfair business practice claiming refund of the amount with interest, damage and cost or direction upon him to pay his outstanding loan amount and register the sale deed in your favour with in next 1 month or pay you the rent for flat of equal size in similar locality till he hands over the flat to you.
On the basis of the MOU, you may issue a legal notice to the seller demanding him to either execute the registered sale deed by retrieving the original title deeds from the financier or to return your booking amount with interest as well as additional amount as mentioned ion the MOU.
After that you may initiate suitable action either to recover the amount or for specific relief of getting the sale deed registered in your favor.
Actually this MOU can be considered as a receipt for the money received by him, hence you can file a money recovery suit to get your booking amount refunded through court of law if he is not responding to your legal notice;
Therefore you may first issue a legal notice to him demanding to obtain the title documents or to return the amount as per the conditions of the MOU signed by him.