What happens if a land seller backs out after taking an advance?

Property & Land Law

The remedy depends on the agreement, the reason for non-performance and whether the transfer can legally be completed. The buyer may seek refund, compensation or, in an appropriate case, specific performance under the National Civil Code.

Important factors

  • whether the advance agreement is enforceable;
  • whether the property description is definite;
  • whether the seller had title;
  • whether required formalities were completed;
  • whether the buyer was ready to perform;
  • whether damages would be adequate.
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