• Assignment deed

Hi
Actually i have seen one Bunglow in MIDC area where owner has alerady made one Assignment deed with Mr. Baba registe ed mutually with X amount to be given with time limit mentioned in agreement. Mr. Baba has paid only 40 % as per agreement and he refused to pay further due to demonitization. Also time limit is alerady over as per agreement.Now the owner has informed to Midc for subjected matter and also MIDC has alerady given a notice to both the parties saying that amount paid for Assignment deed is canceled due to time limit. but issue is still not settled.
I am interested in this Bunglow but due to above story i am afraid to give token to owner. owner is saying that after receipt of your 50% payment i will pay to mr Baba and settle this issue.
1. In your opnion what additional documents is require to take interest. In this property.
2. What type of remedies can be taken in this case to avoid future legal problems if any from mr Baba
Asked 7 years ago in Property Law
Religion: Hindu

Ask a question and receive multiple answers in one hour.

Lawyers are available now to answer your questions.

5 Answers

1. The MIDC has no right or jurisdiction to delcare that the agreemnt is canc elled.onluy a civilcourt cna do so.

2.However it appears that the owner has not returned the money of Mr Baba while seeking cancellation of the agreement.

3. Now if you wish to buy this property and wish to avoid all future disputes then only option is to get the advance money of mr Baba refunded to him and make him a Confirming Party in your sale deed.

4.in other words unless and until he gives consent of sale of this property by making himself added in your sale deed,do not proceed to buy this proeprty.

Devajyoti Barman
Advocate, Kolkata
23198 Answers
510 Consultations

ask owner to pay Mr Baba 40 per cent of sale consideration and cancel the assignment deed

2)let owner then obtain NOC from MIDC and then assign property to you

3) dont purchase the property unless seller settle dues of Mr baba

Ajay Sethi
Advocate, Mumbai
96803 Answers
7810 Consultations

1. Has the owner served a legal notice to the prospective buyer i.e Baba to intimate him about the cancellation of the agreement to sell the flat on account of default by the latter? If he has done it then you may go ahead and purchase the property if the title is found to be free and marketable.

2. Why does owner have to pay to Baba? Is there not a forfeiture clause in the agreement? The earnest money paid is forfeited if the prospective buyer does not pay the balance within the time period mentioned in the agreement.

3. Get all the documents vetted by a lawyer to be on a safer side.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

If the agreement for sale or the assignment deed was by a registered document, then the registered document has to be cancelled by executing a cancellation deed even though it cannot be enforced now and remains barred by limitation.

In my opinion it is better to keep off from this purchase until the vendor clears the amount that is due to be paid to the previous buyer because even if the vendor clears his dues, the previous buyer, if refuses to accept the offer and would go to court, then your investment will remain blocked.

The vendor would express his helplessness and may even not return your amount citing plenty of unavoidable and acceptable reasons.

Then you may have to run behind the vendor and court for recovery of your money.

You can have a legal opinion from a local advocate before venturing into such ideas.

T Kalaiselvan
Advocate, Vellore
87004 Answers
2335 Consultations

This Assignment agreement was done in 5th July 2015 but still not executed due to delay in payments from Mr. Baba

Kindly advise as i have not give n any token amount still date but if i will proceed then i have to sell all my property and saving

In all the probabilities it will not be possible for you to get the sale deed executed in your favor until the previous buyer agrees to execute a cancellation deed jointly with the seller.

Moreover since the assignment deed was executed in the year 2015 only, the time limit 3 years period has not expired hence the previous buyer may adopt a stunt at the last moment also by filing a specific performance suit then your money will remain blocked.

A tripartite agreement also may not be very effective in this situation hence you better consult a local advocate and discuss the issue at length before making any decision to buy.

T Kalaiselvan
Advocate, Vellore
87004 Answers
2335 Consultations

Ask a Lawyer

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