We have one piece of small plot in Nuzvid, Andhra Pradesh which is an ancestral property. In 2013, one buyer wanted to buy the plot and approached our relatives in the town through some mediators. Our relatives had shown the plot to him and he agreed to buy for 12 Lakhs. Upon getting the information, i went there and signed the agreement and took 50 thousand as advance. It is written in the agreement that he will get the registration done in 3 months. On the day of signing, due to a power cut in the town, i could not take xerox copy of the agreement. Asked the buyer and the mediator too many times over phone to send a copy of the agreement. But i didnot get the copy of agreement and i dont have that till date. At the end of the 3rd month, he gave a lawyer notice (not to my address, but to the address of my relative who is also a witness in the agreement). In the notice, he wrote that wrong location has been shown to him, the actual location will not cost that much and wanted to buy the plot at 6.4 lakhs. We dint want to sell at such low price and thus opted to quit the deal. Since then he stopped responding to the calls and messages. However, we have not responded to his notice since we dont really know what to do and how to do. He called twice or thrice to ask us to sell at reduced cost. I clearly told that we will not sell and asked him to take the advance with the accrues bank interest rate. However, he didnot turn up. Yesterday, he called and told that he want to cancel the agreement and wanted money back. I agreed for that and he told that he will come on Sunday. I asked him to withdraw the lawyer notice for which he agreed. Will there be any problem regarding this in the future? I am worried and doubtful.
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1) obtain copy of the agreement signed by you with buyer
2) obtain in writing from purchaser that legal notice is with drawn . that agreement for sale is cancelled with mutual consent and advance amount paid of Rs 50,000 has been refunded to him with interest in full and final settlement
1. if consideration i.e. 12 lac is mentioned in the agreement then claiming to buy in 6.5 lac itself renders this agreement void.
2. you should file a case under the specific relief act for rescinding if this agreement because it is very much inclined in favour of buyer.
3. your right is protected and he cannot bound you to sell it on reduced price.
Though this agreement seems to be an unregistered sale agreement, since the terms were mentioned in it to paint it legal, it would be better that you both enter into a cancellation deed cancelling the original sale agreement and also can mention the terms for refund and the details of the advance amount refunded along with the mode of payment for the refund.
This would ensure a free atmosphere for a possible legal hassle in the future in this regard.
You have the right to forfeit the advance paid by him as he did not turn up for execution of the sale deed. After the sale agreement is signed if the buyer has an afterthought that he is paying more than the cost of the property then he cannot claim refund of advance paid to the seller. You should serve a lawyer's notice to him to reply to his allegations and also drive home the point that he has breached the sale agreement. By not serving a lawyer's notice to him you have given him the fodder to allege and possible prove your mala fides in the court.
