The Sales and Purchase Agreement had long lapsed after 3 + 1 month extension. The Purchaser failed to pay the remaining 90% balance of purchase price.
Reason: The purchaser loan was cancelled by the financing bank due to lower market value as written in letter from bank.
A legal firm was enggaged to investigate the case. Its found that the Purchaser is default as per clause 7.1 of the SPA.
The Vendor have the right to forfeit the deposit as liquidated damage.
However, the purchaser entered a Private Caveat to withhold vendor from selling his house to another party.
I am forced to refund the deposit in order to remove the caveat.
Is this a unlawful demand of refund of deposit?
Can any legal practitioner help me in this issue. Thank you.
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asked on Jan 27, 2015 at 00:48
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