Questions & Answers
Escrow cheque recovery when the contracts are not signed
There was an MOU which was entered between the buyer (we) and seller on 17 February 2020. Due to less valuation by the bank, the contract was revised and the initial agreement was cancelled.
The new agreement was made on 11 March 2020 and it was again cancelled due to error by the agent in the agreement as he had written a wrong size of the apartment.
So the third contract was made but it was not signed due to the global pandemic situation and the selling price mentioned was higher than the agreed price and it was also signed by the seller.
There was no contract thereafter as all the initial contracts were cancelled and as we have given escrow cheque to the agent, they are asking for hefty fees to be paid and then they will release the escrow cheque.
So can you please advise in the given case?
As per your query, there are certain aspects to look at:
1. How was the cheque financed?
2. Was the sale and purchase agreement signed by the buyer? If it was not signed, then how the bank or the financial institution issued the cheque for the escrow account?
3. Do you have Oqood in your name? Is the property registered in the interim register?
4. On what basis the charges are relived in order to release the cheque?
If you want to cancel the property, you have to abide by the contract and the clauses. Also, you have to see what is the stage of the development?
Is there any job loss or income reduction? Why do you want to release the cheque? Is the title deeds with the bank?
In any case, it is better to send an official email or letter to the developer mentioning your concern and if you want to cancel the contract, you have to file a case, in order to settle after you send the legal notice for cancellation.
However, everything is hypothetical and unless we see the proper documents, nothing can be given as opinion.
Please contact us via phone or email for further assistance.
