4 Answers
Dear Client
If you had made a payment of ₹5 lakh as earnest money for buying the property and the seller has failed to make the deal and also has not returned the money, then your rights would depend on what has been written in the agreement, how the agreement talks about the forfeiture/ refund of money, why the deal was not made, and the behavior of the seller.
First, a legal notice needs to be issued to the seller. In the notice, mention the agreement, the payment of ₹5 lakh and the failure of the seller in making the deal as per the agreement. In case the seller is failing to fulfill the obligations under the agreement, an action for specific performance of the agreement can be taken if legally possible. As an alternative, one can seek recovery of the total amount paid.
It is necessary for you to maintain any records, agreements, payments, letters, or anything else that proves that the seller is not living up to the agreement. Limitation is important, particularly for a specific-performance claim, so you should have the agreement examined by a property lawyer promptly rather than waiting indefinitely.
I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you.
Dear client,
you can sue for specific performance to compel the sale, or the refund of ₹5,00,000 with interest and damages under Section 73, ICA since the seller, being at fault, cannot retain earnest money. Send a legal notice first demanding execution or refund. File within 3 years of the date fixed for performance, or of the seller's clear refusal as limitation can start earlier for a refund-only claim. Keep the agreement, payment proof, and correspondence ready.
Dear Client,
If you paid Rs. 5,00,000/- as earnest money to the seller and the seller is neither completing the sale nor returning the amount, you should first issue a formal legal notice demanding completion of the agreed sale or refund of the amount, as applicable.
Keep the agreement, payment proof, receipts, messages and other communications with the seller safely preserved.
If the seller has breached the agreement, you may have legal remedies for refund, damages and/or specific performance, depending upon the terms of the agreement and circumstances.
The exact remedy will depend upon whether there is a written agreement to sell and its terms regarding earnest money and default.
You should avoid making any further payment until the seller's title and the status of the property are properly verified.
If the seller still refuses to resolve the matter, appropriate legal proceedings may be initiated before the competent court.
You may opt for a one-on-one consultation with our office for review of the agreement and payment documents.
Hope this clarifies your position.
OLQ LAW FIRM
Dear Sir,
You can generally consider (1) a legal notice demanding either completion of the sale within a fixed period or refund of ₹5,00,000 with interest and damages, and (2) a civil suit for appropriate relief. If the agreement is still enforceable, a suit for specific performance may be considered; alternatively, if you no longer want the property, you can seek recovery/refund of the ₹5,00,000 with interest and other legally recoverable amounts. If the seller has deliberately induced you to pay money and dishonestly retained it from the beginning, criminal remedies may also arise, but mere breach of a contract does not automatically constitute cheating.