• Cancelling the plot sale agreement

Hello Sir/Madam,

I have sold a property near Tirupathi in Andhra Pradesh to person in July 2016 and we have entered into an agreement that the buyer will the amount in 3 months. He initially paid an advance amount and promised to pay remaining amount in 3 months. I failed to take duplicate copy of the agreement and gave him the plot original document. And, I don't remember the cancellation clause in the agreement. we have requested the lawyer (Buyer's person) who made this agreement. he is also not giving the agreement. 

I have been following-up with him for last 5 months over phone calls and personal visits. Despite all this, buyer is not willing to pay the amount. Buyer says he will get money soon and then will go for registration. I don't have faith in him that he will pay money in another 6 months.

Considering this, I have to sold other property to clear debts. I am not in need of money now. What are the option for me to enable Buyer to pay remaining amount or cancel this agreement?

Could you please help.
Asked 7 years ago in Property Law
Religion: Hindu

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8 Answers

1)issue legal notice to purchaser to pay the balance amount as per terms of contract within period of 7 days of receipt of notice

2) call upon buyer to return your original documents of title in case he is not interested in proceeding with the purchase of property .

3) if he fails to pay balance amount then cancel the agreement

4)file police complaint of criminal breach of trust, cheating against the purchaser

5) also file suit to call upon purchaser to return your original documents .

Ajay Sethi
Advocate, Mumbai
95217 Answers
7612 Consultations

5.0 on 5.0

1.Since the buyer agreed to pay the balance amount in 3 months, his failure to comply with the condition entitles you to cancel the agreement. So you can serve a lawyer's notice to him to cancel the agreement.

2. Unless the original agreement is cancelled a fresh agreement with another prospective buyer cannot be made.

3. In so far as the forfeiture of money is concerned the answer to lie in the agreement itself.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Send him a cancellation letter cancelling the deal and send him the advance money.

Cancellation of agreement is right of the seller and buyer can not force him to sell the property.

So if he files the case in court there is no guarantee that court will direct you to sell the proeprty to him only.

So proceed to cancel the agreement and obtain certified copy of the deed from registration office.

Devajyoti Barman
Advocate, Kolkata
22921 Answers
498 Consultations

5.0 on 5.0

1. You should send him a letter asking him to pay the balance amount within next 10 days failing which he should treat the said agreement as cancelled with out any further notice from your side.

2. After the said period you should return him his said advance amount he had paid to you.

3. On cancelling the said agreement, you can sell of your said property.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

If the sale agreement period is just 3 months only, you may issue a legal notice to the buyer intimating that since the sale agreement period has expired, the contact or the agreement stands cancelled.

You may advise him to collect the advance amount received by you without interest and you may return the same by deducting any amount as per the clause of the agreement, if any.

Let him accept the offer or go to court where you can challenge the same.

T Kalaiselvan
Advocate, Vellore
85420 Answers
2239 Consultations

5.0 on 5.0

1) the agreement entered into by you with purchaser provided that he shall pay balance amount in 3months and enter into regs agreement with you

2) since buyer has failed to pay balance amount and register agreement within 3 months advance amount can be forfeited

3) un registered sale deed would be inadmissible in evidence

Ajay Sethi
Advocate, Mumbai
95217 Answers
7612 Consultations

5.0 on 5.0

1. An unregistered sale deed cannot be enforced in law, however this may be used as receipt for the payment made because this has been acknowledged by you in the said agreement.

2. Many people will tell many things, but nobody will come to the court to express their own personal opinion contradicting the law of the land. He can recover the amount paid but without interest since he is bound to honor the agreement whereas he remained silent, even though it is an unregistered sale agreement. The limitation is three years from the date of acknowledgment of the advance payment received.

3. What is the unregistered sale deed yo are referring here.

Any transaction towards an immovable property through an unregistered document is invalid in the eyes of law, the unregistered sale deed will not confer the title on the buyer and he cannot claim title or possession of property on that basis.

4. Your inability has no excuse in law if the law involved in this is not respected.

You are to honor the commitment.

If he fails to turn up now but emerges in the last moment, you may challenge his case in the court of law.

T Kalaiselvan
Advocate, Vellore
85420 Answers
2239 Consultations

5.0 on 5.0

1. No, the said sale agreement is not valid only for three years.

2. You have not executed any sale deed but sale agreement. It is not a fact that you are not liable to return the advance since it is not registered. You are required to return the advance legally in case you cancel the agreement.

3. You have entered in to a sale agreement but not a sale deed. There is a difference between sale agreement and sale deed. Sale Deed is executed and registered after receiving the entire consideration which you have not yet received.

4. If there is a forfeiture clause mentioned in the said agreement that you shall forfeit the advance amount paid by him if he fails to pay the balance amount and register the sale deed within three months then you have the legal right to forfeit the advance amount paid by him. I have spend the advance amount is no ground to refuse to return him his advance amount.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

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