• Land deal cancellation process

Dear sir,
We have made one agreement in 2015, of selling my agreecultural land. The deed was that the buyer will buy the land after 2 years and he have given the advance amount. The deal was made on the 100 rs stamp. Which was registered. The clause was given in the deed that if he fails to buy the land the advance amount will be forefitted. On the date of agreement the buyer was not availabe and denied to purchase. 
But after some days he made the same deal to increase the time and will do purchaseon next date on rs.100 stamp paper which was not registered or notory. the deal was that to add one more name as purchaser and all the condition will be same as the previous agreement and he also given advance amount as seller need the money thats why we are giving the extra advance.
But again on the date of purchasing the land he denied to purchase by saying i am out of town and cancel the deal. I have given him proper intimation on whatsapp before 3 days of agreement to be available on the date I also sent the same intimation him continously three days.
So what will be my next step. I have proper documentation that we are present at tahsil premises on the date of agreement and denied to come.
In this case should i have to give him money back?
I also hire the lawyer to send him the notice of cancellation but my lawyer is asking me for blank rs.100 stamp which will be duly signed by me and other person of which the property is.

What should i do Please suggest.
Asked 7 years ago in Property Law
Religion: Hindu

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5 Answers

1) inform the purchaser that since he has failed to make payment withion time stipulated in the contract deal has been cancelled

2) refund the advance money received from seller

3) deed of cancellation can be executed

Ajay Sethi
Advocate, Mumbai
95216 Answers
7611 Consultations

5.0 on 5.0

this is an agreement of sale, a pre stage of sale deed, and this deed does not support any right of the party except that there is an agreement to purchase a land.

this agreement is neither notorised not registered therefore it has no value in the eyes of law.

you are not bound to return advance money because earnest money is not returnable if buyer refused to purchased the land. it is legal and based upon customs of the business. you should send him a notice and you can sell it to other buyer.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1)the reason why i suggested that you refund advance money is to avoid legal complications

2) you can forfeit the advance money if there is clause to that effect in contract

3) you should mention that as per agreement dated x date land was to be sold at x rate but since purchaser has failed to make payment agreement stands cancelled

4) never give signed blank stamp paper

5) you are not bound to sell land to purrchaser as he failed to honour his commitments

Ajay Sethi
Advocate, Mumbai
95216 Answers
7611 Consultations

5.0 on 5.0

First of all you have approached a wrong lawyer becasue his demand for blank non-judicial stamp paper to deal with this issue is unjustified and illegal,

Secondly, you said that the buyer would buy the property after two years from the date of agreement, whereas you have not stated whether the two period is expired or not, hence before that you dont have any cause of action for initiating any legal process on this.

Thirdly, before canceling the previous sale agreement the subsequent sale agreement is not valid and illegal in the eyes f law.

Fourthly you say that you have sent the messages through whats app. Whats app messages are not valid as admissible evidences before court of law. You should a written communication by registered post for creating an evidence against the buyer.

You may consult a different lawyer and proceed as per his furthe advise.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

1.why should i refund the amount as there clear mentioned that if he is fail to purchase land the money will be forfeited.

The conditions stand revoked when you entered into a fresh agreement without cancelling the previous agreement, because you have violated the conditions of the registered sale agreement by making a fresh agreement.

2. What will be the content of notice of cancellation of agreement as you were absent and denied to purchase.

Your lawyer will explain what is to be written in it

3. Why my lawyer ask me for blank Rs. 100 stamp duly sign by all the property owners.

Your lawyer is trying to make money by fooling you, beware of him and you may ignroe this alwery and pproach a new and god lawyer.

4. Is it Neccesory to give that blank rs. 100 stamp duly signed.

Not necessary. dont give, because the possibilities of misusing the same are more.

5. Can he be able to do the same deal between 3 months time from the date of cancellation and if so, then what if i reject to sale as he has not done the contract on given date in agreement. what will be the conciquences.

It will depend on the prevailing conditions.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

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