Seller didn’t disclose about road widening

[User_287e9699]

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User_287e9699
PARTICIPANT
March 10, 2025 at 7:55 pm

I recently paid an advance of 10 L for a property. The property is on the main road and master plan says that 25% of the property will get wiped incase of road widening. This wasn’t disclosed by the seller and I got to know about it only after paying the advance while I applied for home loan.

1. Is there a way I can get my advance back? If yrs , how much of it?
2. Is it legal for the seller to not disclose such information? We signed an agreement and this wasn’t mentioned in it.

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[Lakshmihero956]

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Lakshmihero956
PARTICIPANT
March 10, 2025 at 8:17 pm

1. Completely depends on the seller
2. It is always the buyer who’s supposed to do this type of due diligence. Seller is under no obligation to disclose any such information.

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[User_287e9699]

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User_287e9699
OP
March 10, 2025 at 8:21 pm

Thanks, Any idea how much of the market value I can get if govt decides to do road widening?

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[Lakshmihero956]

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Lakshmihero956
PARTICIPANT
March 10, 2025 at 8:30 pm

This varies from place to place and project to project. In most metropolitans, you get something called TDR and not an outright cash compensation. You can however, sell this TDR in the market. 

In small towns, you get upto 5x of government valuation but that valuation itself is 1/10 of market value. Effectively, you get half 

To sum it up, this varies a lot from case to case.

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[User_287e9699]

U

User_287e9699
OP
March 10, 2025 at 9:24 pm

Can you suggest me some ways to get my money back or should I go ahead with the sale

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[Lakshmihero956]

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Lakshmihero956
PARTICIPANT
March 11, 2025 at 4:11 pm

Again NAL but if I were in your case, I would sit with the seller to understand if he’s willing to come to an understanding. Or, I would have just delayed the transaction a little and looked for another buyer who would be willing to take it at the same price. Like you, most of the investors are not conversant with the municipal jargon that our country’s complex land laws pose. It should not take much effort unless the information becomes widely known.

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[Neeltiger760]

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Neeltiger760
PARTICIPANT
March 11, 2025 at 12:22 am

If you are registering at full value, then you can be compensated handsomely, usually begins at 150% of your purchase value

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[Fierceanirudh9723]

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Fierceanirudh9723
PARTICIPANT
March 11, 2025 at 6:46 am

Your point 2 is not correct. The seller must disclose any material information that could impact the value of the plot. Not doing so knowingly can be constituted as fraud. At the same time the buyer must do Legal DD before paying any significant token.

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[Lakshmihero956]

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Lakshmihero956
PARTICIPANT
March 11, 2025 at 4:07 pm

Is it by law? Even then it might not be true for all states. Because land is a state subject as far as I know.

And there could be a dozen material information that could impact the value of a plot. Take this case for example. There is no certainty that the value will be affected by road widening in government records. Their valuation is still x and they will pay more than x for sure. It is the market value that has a different multiple and this multiple is impossible to determine accurately.

Additionally, let’s say the seller is suppose to disclose material information. But he cannot disclose information he does not officially know. Unless the urban local body sent him a notice, which he received, he can always claim he did not know.

I still don’t see how the seller can disclose such information and how can it be legally binding on him.

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