Legal Question in Real Estate Law in India

Hello! My name is Deepak and recently gave the token money(Agreement to Sell) for buying a freehold flat in New Delhi. Since i had to arrange for a finance through bank loan so i applied for one. In the Leagal Search report submitted by the empanelled lawyer it is stated that the "Title of Property" is not clear due to the non availability of the Court Order which was passed on the entire Khasra of which my flat's land is a smaller part.

Q .1. Since i have to take a loan to buy this flat and bank has refused to finance it. What legal options do i have if my seller refuses to return the token money. Bank Loan was not mentioned in the Agreement to Sell while signing it.

Q. 2. What is the admissibility of my claim to get my token money back since the title of the property is not clear?


Asked on 6/11/11, 3:10 am

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

As per section 55 of Transfer of Property Act, Vendor/Owner is responsible to make out free, clear and marketable title to the property. Obtain original/true/certified copy of Title Report of Lawyer who opined that title is not clear and call upon the Vendor either to clear the same or refund money.

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Answered on 6/11/11, 3:43 am


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