Help please i am losing my entire life savings in real estate

Buying Property General Advice
#1

Dear brothers,

I had booked a commercial plot on installments in a society in lahore and had paid over 1 crore initially. I could not continue as my father passed away suddenly who was going to pay off the remaining installments.

Unfortunately, i had signed an agreement in which the terms signed go against me and i will lose the entire sum paid. I have requested the society to swap to residential plot but they flatly refused!

Brothers please guide me what to do as i lose my entire savings and have family to support.

Guidance from everyone especially Imtiaz sb, Nadeem bhai, Falcon, Abdul Qayum bhai and isloo would be much appreciated.

#2

Sir can you write a bit more detail about it. In case of non-payment, I am not sure if any society has the right to confiscate all amount (may be some percentage but not all for sure). Anyways, can you share details such as: Society, Total Price, Size, etc. There can be 3 possibilities.

  • Sale that

  • Exchange that

  • Co-investor for that

I am sure, there will be a favorable solution, IA.

#3

File a case if they dont agree to swap for residential plot…

#5

ALi khan,Can u plz explain that clause according to which u are fear that your plot will be lost if you don’t pay for the rest of the amount?I don’t think there can be any such condition on the purchaser.

#6

Thanks Imtiaz bhai & Falcon for responding. I am very grateful for your guidance in this difficult time.

I have tried to respond earlier but my posts were being blocked.

Imtiaz bhai, plot can't be sold I am afriad as market price is much low compared to booking. So I am only left with the Exchange option, something the society is not accepting apparently having byelaws that prevent swapping commercial with residential.

#7

And they retain a very high % of the booking price in case of non payment, so I am losing the entire paid amount as their % of booking price exceeds my paid amount which is quite harsh. I am in a fix now having no option. Please do guide further

#8

Falcon bhai, I am afraid that unfortunately there is a clause in the agreement stating that society can cancel the plot booking in case of non payment.

In that case, they keep a v high % of booking price, and refund the rest. So I am losing my entire amount paid.

#9

'Cancel Plot Booking' & 'Deduct Plot Booking Amount'

are two different things. Sometimes Booking is approx 50% too. To deduct all sounds like a rip off that may not be the case. As the developers normally have a standard clause that says something like the developer reserves the right to cancel the booking for some some unspecified reason, so if that becomes the norm than all book plot cancelled and their booking amount confiscated will make that a disaster for ant client.

My advice would be not to stress yourself due to probably misinterpreting the rules. Also, since you have asked the solution so a precise solution cannot be provided unless one shares the developer/society name + context of the situation. If you like to keep that in secrecy that is all fine for your personal reasons and understandable, however, that may not yield a more concrete suggestion or solution.

For example, the Cooperative societies as well as registered ones must follow a standard practice that is approximately the same. Not sure if some unregistered projects have some one sided clauses...?

#10

Ali Khan, i have somehow understood your problem. There are a few societies that have these kind of canellation rules in case of non-payment. Actullay your cancellation fee percent is on the total price instead of paid amount. So in that case you are in a loss. I would suggest you to find out some good lawyer who deals in propery matters and take legal advise from him. He will guide you about any possibility of getting some amount back. May Allah help you.

#11

Why not

  • try to sale it (even slight below the market may help)?

  • co-investor (a common practice in commercial projects)?

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