logo logo

What is the difference between ‘Earnest Money’ and ‘Advance’ in Agreement to Sell?

- by Rameshvarma, Channapatna

The seller can forfeit the earnest money if the purchaser defaults in completing the sale. Whereas, the advance money cannot be forfeited even if the purchaser defaults in completing the sale. The earnest money stands as the purchaser’s guarantee for his performance of the contract. The advance cannot be treated as guarantee for completion of contract.

image

These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.

QUESTIONS

Q:- I am a regular reader of Real Estate Reporter particularly the columns, frequently asked questions and questions & answers on property matters. Recently I was transferred to Mandya and negotiated a house for rent. The owner insisted on an agreement of 11 months only whereas I wanted for three years. Please let me know, what is the secret behind this eleven months agreement?

Q:- I had taken land on lease for 99 years and had constructed a multistoried building. The Lease deed contains a clause, “Cannot assign, underlet or sublet or part with the possession of the demised property without the previous permission of the lesser”. The lease deed provides for construction of building, I have given portions of the building on leave and license to various businessmen. The lesser has issued a notice demanding subletting charges from me and has also marked the copies to licensees demanding to pay the subletting charges. What is the remedy? Can the Lesser institute legal action against me and other licensees?

Q:- In our Apartments (12 flats) the builder, represented by sellers GPA, has sold the open land in front/rear of ground floor flats to them and a car parking at the main entrance gate to 3rd floor owner.  Schedule of A property measures 7190.5 Sft.  Schedule B property spells out an undivided share, right, title and interest in that piece and parcel of property described in Schedule A mentioned, equivalent to 538.80 Sft. for C type flats;  570.40 Sft. to B type flats;  measuring 688.30 Sft. to A type flats. C schedule spells out individual flats super built up area together with proportionate share in common areas with car parking. That is the sale deed puts the owners in physical possession of 538.80 Sft (C type) 570.40 Sq.ft (B type) and 682.30 Sft (A type) undivided interest in the said schedule property. Also the builder/sellers have retained the right to use the Terrace to put up further floors and the facilities provided including lift are just sufficient for 12 flats.  Is it lawfully right to sell the common land, car parking at the main entrance to the 3rd floor owner.  Is it lawfully right to retain the terrace rights and put up further floors?

Q:- My mother deceased recently. Father has expired long ago. My mother has left behind property worth Rs.60.00 lakhs.  It is herself acquired property. She has not made any will. We are four brothers and two sisters in all.  One of the brother and sister died subsequent to the death of the mother.  The deceased brother and sister have one son each. Since all are settled independently, we want to sell the property.  Please guide us who should join the execution of the sale deed?

Q:- I am a Law student. My sister would be purchasing a house in Malleshwaram and has requested me to prepare a sale deed.  Can I do it?