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CorporateInternationalReal Estate – Termination of SPA and refund to purchasers

April 9, 2020

Investment in Real Estate has been one of the major contributions in the economy of a country. With the burgeoning population, Real estate business grew in magnanimous proportions till the bubble burst in 2008. Currently in 2020, we are witnessing a repeat if not exactly similar to the downfall that happened in 2008. We are receiving countless complaints of unfinished apartments way behind the scheduled timelines and thereby giving rise to a claim of refund.

In all Sale & Purchase Agreements (SPAs), the Anticipated Completion Date is extendable by one year. The word “Anticipated” itself implies that it can be extended. So, from the point of view of the Purchaser, he is in a position to claim his money back only when the extended timeline beyond the Anticipated Completion Date is exhausted and he fulfils the other criteria of sending the notices for remedy and termination as set out in the SPAs. The most important rider to all this is that for getting a full refund, the Purchaser should fulfil all its obligations for payment till the cause of action for termination arises on account of the default of the Seller/Developer. Any default by the Purchaser during this entire period of signing the Agreement till the rise of cause of action of termination can spoil his case for claiming refund from the Seller/Developer.

Justicon guides the affected purchasers in interpreting the SPAs correctly to enable them to file a case for termination of the SPA and refund of the entire amount.

We give written opinions on the way forward, as well as draft the notices for remedy as well as termination of the SPAs and thereafter depending on the  Dispute Resolution Case, file the case in the appropriate forum. To repeat, if any purchaser has fulfilled his obligations till the cause of action for termination, the purchaser is entitled to full refund of the amounts he had already paid.