• Agreement

We, want to buy a factory and buyer is demanding 50% advance against signing of Agreement
and possession after 1 month against full payment. We have doubt that in case he get a better
buyer he may sell to new buyer and to file legal case with said Agreement would involve legal
complications and time. So, if we said Agreement in form of an Affidavit from the Seller before
Magistrate where would be a criminal offence on his part? And whether his subsequent sale 
would be totally null and void?
Asked 7 years ago in Criminal Law
Religion: Hindu

3 answers received in 2 hours.

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5 Answers

1. Breach of agreement is never a criminal offence and hence no criminal case can be filed.

2. If you want to ensure the proeprty then you can make a full payment and register the sale deed simultaneously.

3. Affidavit beofre the Magistrate will be of no use.

Devajyoti Barman
Advocate, Kolkata
22921 Answers
498 Consultations

5.0 on 5.0


1) In fact until both the parties have signed the Agreement for Sake and have it registered the seller can succeed in entering into another sale agreement.

2) As seller is demanding 50& of the cost at the time of signing, it is advisable to sign either an Agreement For Sale or an MOU setting forth clearly the terms and conditions namely the liabilities, obligations and penalties involved in case of violation of the agreement.

3) Affidavit before a Magistrate is not creating additional liabilities on the seller neither would that invalidate a sale. Unfortunately there is no other short cut than litigation if the seller fails to comply. The best you can do is to obligate him with conditions that are legally enforceable.

S J Mathew
Advocate, Mumbai
3564 Answers
175 Consultations

5.0 on 5.0

1) under no circumstances agree to pay 50 per cent advance

2) agree to pay only 10 per cent balance on execution of sale deed

3) if seller refuses to execute sale deed you can file suit for specific performance

4) it is immaterial if seller executes affidavit or not

5) you can file police complaint of cheating if seller after executing agreement for sale refuses to execute sale deed and refund your 50 per cent payment

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

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You may be having plans out of your imagination to protect your interests, for example the step what you have suggested in your post.

Whereas the law is different.

The procedure to buy a property is by entering into a registered sale agreement, pay an advance amount towards part payment of the sale consideration amount, pay the balance amount at the time of registration of the executed sale deed.

If yo0u suspect the integrity of the vendor, then do not enter into sale agreement at all, go for the purchase directly by making the entire amount ready for passing consideration towards execution of registered sale deed without entering into an agreement first.

Or, you may decide not to buy this property if you suspect foul play.

Take an opinion from a local lawyer on all such further issues.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

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1. Even if you annex an affidavit with the agreement, and the seller violates the terms of the agreement, the legal remedies will remain the same for you. Once a person enters into an agreement to sell with a buyer and then violates it he is amenable to be criminally prosecuted for the offence of cheating and criminal breach of trust even if there is no affidavit.

2. The subsequent sale will be valid unless the civil court declares it null and void.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

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