I made a deal to sell a property in chennai to a buyer, and got advance money and a 4 month agreement was signed by both of us, the agreement day was over on november 2014
Can I sell this property to another buyer as the previous buyer did not complete the sale with n the stipulated time?
Asked in Property Law from United States
1. Cancellation or specific performance of a contract depends on the fact as whether therein the time for completion of sale was made the essence of the contract.
2. So check whether there is any penal clause of cancellation clause in the sale agreement if the sale is n0t completed within the stipulated time.
3. if that is so then send a letter of cancellation, return the earnest money and enter into another agreement with another person.
4. Before cancellation a window for 15 days is advisable to be given to the buyer to complete the deal.
1. As per the facts furnished by you, you entered into an agreement to sell your property and earnest money was paid to you. Was the agreement registered?
2. Is there a specific clause in the agreement which mandates the sale to be completed within a specific time? What does the cancellation clause say?
3. If the agreement does not provide for the extension of time to execute the sale deed then a legal notice for completion of sale may be issued to him. Failure to comply with the legal notice can lead to cancellation of the agreement whereupon the earnest money shall be refunded to him.
1) it is your case as per agreement for sale entered into by you with purchaser 4 months time was given for making payment . in other words time was essence of contract
2) since period for making payment has expired send notice by registered post AD for cancellation of agreement and refund advance money paid by him .
3) you are at liberty to sell the property to any other person after returning advance money
1. If it has been mentioned in the said agreement for sale that the prospective buyer shall have to pay the entire consideration within a stipulated period failing which you are at liberty to sell the scheduled property, then you can sell it to some other buyer duly cancelling the said agreement,
3. Before cancelling the said agreement, you should give the prospective buyer a notice of 7 days to comply with the terms of the agreement he has entered in to with you informing him that you shall otherwise will be free to terminate the agreement without any further notice.
A. You have to scrutinize the agreement as to whether the penalty clause is mentioned by virtue of time is the essence of the contract? In case there is no particular time is fixed as essence of the contract or penal clause, you are liberated to confiscate the advance amount. But in the presence of penal clause, both parties are bound to follow the penal clause.
B. You may send notice by the way or Registered post with Acknowledgment to the buyer by mentioning agreement time has expired, hence the agreement has been terminated and the advance amount has been confiscated.
Most of the specific performance agreement contain the time was essence of contract. If the period for making balance payment and terms of the agreement was expired the first you send a lawyer notice to rescind the contract for cancellation of agreement and refund advance money paid by him.
After the notice period you are at liberty to sell the property to any other person .