• Default interest clause for sale agreement

1.In my property sale agreement , no clause for interest is mentioned if payment is not made within defined timeline. In this scenario, as a buyer m i liable to pay any interest on outstanding amount .
2. Is their any default clause for interest for property sales transaction.
3. Can i cancel this agreement and get my stamp duty and registration fee back.
Asked 7 years ago in Property Law
Religion: Hindu

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3 Answers

1) you dont have to pay interest if there is no such clause in your contract

2) if you are unable to make payment within period stipulated in agreement for sale you can cancel the agreement by mutual consent

3) you can seek refund of stamp duty paid by you

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

Dear Querist

My opinion on your queries are as under:-

1.In my property sale agreement , no clause for interest is mentioned if payment is not made within defined timeline. In this scenario, as a buyer m i liable to pay any interest on outstanding amount .

Opinion: Only the terms and conditions of the sale agreement will be enforceable, no terms and condition apart from the sale agreement can be imposed by any party of the agreement in any condition until and unless execution of another agreement with new terms and conditions.

2. Is their any default clause for interest for property sales transaction.

Opinion: Its depend on the mutual agreement of the parties.

3. Can i cancel this agreement and get my stamp duty and registration fee back.

Opinion: It is your right to cancel the agreement but stamp duty and registration fee can not be back.

Feel Free to call

Nadeem Qureshi
Advocate, New Delhi
6307 Answers
302 Consultations

4.9 on 5.0

In the absence of any such clause you may not be reburied to pay any such interest.

There is no law to force such a situation if there is no clause or agreed terms or conditions demanding interest for the delayed period

You cannot cancel the sale agreement unilaterally, it shall be considered as violation or breach of contract, however if you are not ready to perform yor part of contract beyond the stipulated period as mentioned in the agreement, the sale agreement may be cancelled by invoking the provisions.

The state government of Maharashtra has amended section 48 (pertaining to property sales) of the Mumbai Stamp Act, 1958, to allow flat buyers to get stamp duty refunded up to two years after the cancellation of the agreement with the builder. Earlier, it was six months.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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