Legal Advice

Buyer demanding refund of money after taking possession of land

Shivendra Pratap Singh


High Court Lucknow


Reading Time:

Question asked on: 25 Apr, 2022

Question: A sale deed has been signed by both the parties, but could not be registered as on the nick of the hour original property papers were found to be misplaced. Full payment has been made by the buyer. Buyer demanding refund of money after taking possession of land. And the unregistered sale deed and the possession is with the buyer. 

The seller has been undergoing the process of getting a duplicate copy of the papers by registering an FIR. Public Announcement in two Newspapers, and Undertaking to the Registrar Properties for the issue of Duplicate Papers for the registration of the aforesaid sale deed. But the buyer says to refund him the entire money till the process is completed. Buyer says return the money. What should the seller do in this case?

Asked from: Uttar Pradesh

The buyer has taken possession and the seller is trying to get a duplicate sale deed. In absence of necessary papers the seller cannot transfer the land to the buyer. The seller has the intention to sell the property and handed over the possession to the buyer.

There is no fault on the part of the seller, hence, the buyer cannot demand a refund of money. He can either hand over the possession of the land to the buyer and lose the earnest money or remain in possession and wait for the execution of the sale deed. 

In your case the buyer is not interested to hand over the possession of land. He wants the refund of money and till then remains in the possession of land. In this situation you should file a civil suit for specific performance of contract. File a civil suit under Section 10 of the Specific Relief Act. 

The buyer will have no option except to buy this land. Because he has taken possession of the land in the course of performance of the sale agreement.