• Cancellation of registered sale agreement

I entered an agreement of sale for a property which is jointly owned by me and my brother. Note that my brother had not signed the agreement. I agreed in confidence that we are paid the correct value. The period was for 1 year. Some advance was paid. 1 month into agreement I find they have convinced for half value as I live abroad. Is it possible to cancel the agreement and I am prepared to give the advance back and a reasonable penalty if needed. Thanks.
Asked 7 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

9 Answers

1) it is necessary to peruse agreement to advise?

2) there must be cancellation clause in agreement

3) agreement can be cancelled as per said clause

4) in any case agreement not binding upon brother as he did not sign the agreement

Ajay Sethi
Advocate, Mumbai
95208 Answers
7610 Consultations

5.0 on 5.0

1)if time is essence of contract you cannot arbitrarily cancel the agreement

2) if you fail to execute registered sale deed and deliver possession of property purchaser will file suit for specific performance of contract

3)mutual cancellation is best option

4) brother cannot be forced to sell his 50 per share as he never signed the agreement

Ajay Sethi
Advocate, Mumbai
95208 Answers
7610 Consultations

5.0 on 5.0

1. You can cancel the said agreement for which you shall have to show acceptable ground to contest their suit to be filed against you claiming specific performance.

2. You can cancel the agreement stating that the said agreement of sale of a jointly held property signed by only one co-owner being yourself, is illegal hence invalid for which you are returning the advance collected by you with interest at the rate paid by the Banks.

3. If you have the Bank account no. of the opposite party, it will be prudent on your part to first remit the said amount online and then send him the letter of cancellation on the above ground since as otherwise he may refuse to accept your refund cheque and keep demanding that you should honour your agreement.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

1. If you want to cancel the agreement, you shall have to find out loopholes in the said agreement.

2. One loophole is that the agreement itself is invalid for being executed by only one co-owner of the property and the other co-owner refused to sign the same due to the fact that the price fixed for buying the said property is abnormally low in comparison to its market value.

3. You can also wait till the last date of making the full payment by the purchaser gets expired based on which you can also cancel the said agreement for the reason that the otherside did not comply with the payment terms stipulated in the said agreement.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

1. If the buyer does not pay you within the stipulated time you can cancel the agreement.

2. However you can not cancel the agreement only because the price is lesser.

3. If time has not elapsed you will have to wait till the expiry of time and then cancel it.

4. Yes, you can take plea of your brother to cancel it.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

Since the property is joint lying in you and your brother and you brother is not a signatory to said sale agreement, the agreement itself is not a valid agreement. However you have signed agreement, you can cancel said agreement by issuing a termination notice by mentioning the tactics they have played with you in respect of land value.

Lakshmi Kanth
Advocate, Hyderabad
446 Answers
15 Consultations

4.7 on 5.0

Dear Concerned,

This agreement to sale seem to be an un registered document. As this is an un registered document - You may do the following

1. Much before the date of agreement send a notice to the buyer cancelling the transaction / agreement to sell and also mentioning the reason of cancellation

2. Do mention that you are ready to refund the advance paid for the property DO NOT PROPOSE for paying the penalty charges (keep it for the time if things go out of discussion)

3. You may choose to hire a legal consultant to speak to the buyer on your behalf after/ before the notice is sent.

4. The buyer may file a case of Specific Performance but here this does not seem to be a chance as the agreement was signed by just one owner.

Best of Luck

Atulay Nehra
Advocate, Noida
1309 Answers
58 Consultations

5.0 on 5.0

The period was for 1 year. Some advance was paid. 1 month into agreement I find they have convinced for half value as I live abroad. Is it possible to cancel the agreement and I am prepared to give the advance back and a reasonable penalty if needed.

Since your brother has not signed the sale agreement, he can issue notice that the sale agreement is not valid as he has a share in the property and he has not been consulted nor he had given his consent.

This will help you cancel the sale agreement stating that the sale agreement is void in the absence of not being consented by another share holder.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

1. If you are not iterated to continue with the sale agreement, you may adopt the tactics what was suggested in my previous post which would help you to avoid legal consequences.

2. You can do that, if he agrees for it, the disputes at a later date can be avoided.

3. Yes he has got rights to say so.

T Kalaiselvan
Advocate, Vellore
85409 Answers
2237 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer