I went into a property sale contract taking earnest money. Final date for same was 31st march. But buyer could not complete deal of his own due to lockdown. So he is not able to pay me full amount. I have taken loan from someone on the other hand to buy a property against it. Should i hold him liable for interest or confiscate his earnest money?
1 Answer from Attorneys
Under the given circumstances, it may not be advisable to forfeit the EMD. In most of the states the office of Registrar of Documents is not even functioning, physical or online. Some states e.g. UP have started it online. You may give him a notice to come forward and complete the purchase. Simultaneous write to your seller to extend the time, if time was the essence. As far as your loan is concerned, you will end up paying interest.