• Purchaser not paying balance amount

I made an agreement to sell my property.advance was Rs. 22.5 Lakhs it was on 2/11/2017. term was 6 months. . purchaser requested for more time and I allowed 45 days first and again 30 days more. Again he asked for another 6 months that ends on 31st dec 2017. he agreed to pay 12% interest for the balance amount. he has not paid a single Rupee so far. what should I do.
On the other hand I paid advance for another land, I had to take loan of Rs.15 Lakhs from bank and borrowed Rs. 40 lakhs from my relatives to fulfill my agreement. .
Property is agriculture land. sold and purchased. in karnataka.
please give me your valuable advise.
Asked 5 years ago in Property Law
Religion: Christian

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12 Answers

1) issue legal notice to purchaser to pay balance amount by 31 st December failing which agreement would stand cancelled

2) you can forfeit the advance payment if there is clause to that effect in agreement

Ajay Sethi
Advocate, Mumbai
89849 Answers
6516 Consultations

5.0 on 5.0

Since they didn't act upon the terms and condition of the agreement you can cancel the agreement reducing some amount form them as compensation as mention in agreement .. then you can sell the property to another without no issues :)

Shiva Bharathy
Advocate, Chennai
81 Answers
1 Consultation

4.0 on 5.0

Well,the agreement for sale is not complete until and unless the culminated in to execution and registration of a deed of conveyance.

So chanse the buyer to complete the deal .SInce more than 22 lakh is paid it is not wise to cancel the agreement just yet

Make effort to negotiate with him and request him to pay balance payments.

if he does not pay within a time then you have only option to refund his money, cancel the agreement and and make fresh agreement with a new buyer.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
416 Consultations

5.0 on 5.0

You should send him a notice that if payment is not made within stipulated time then advance shall be forfeited. If you file civil suit for recovery of remaining dues then matter will be linger on/stalled for indefinite period. Therefore you should prefer to give notice instead of filing civil suit. If he again refuses to make payment after 31st December then give another notice that advance money has forfeited and you are looking for another potential buyer. According to section 54 of the Transfer of Property Act agreement to sell does not give any right to the parties therefore you have right to cancel this agreement after giving a due notice. If he does not make payment  till 31st December then you have accrued a right to cancel this agreement and sell this property to another potential buyer.  if you do not want to forfeit his advance money then you should deposit it before the Civil Court by filing an interlocutory application.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

Firstly, there is no such boundations where you can't make changes in the agreement to sell, but subject to the consent of both the parties.

Secondly, you can ask the purchaser to pay as much amount as you have suffered loss due to his delays.

Thirdly and lastly, you can change the purchaser without even giving back the earnest money been given to you by the purchaser.

Good Luck...!

Sanjay Baniwal
Advocate, South Delhi
5468 Answers
13 Consultations

5.0 on 5.0

You've two options:

A. Of cancelling this agreement to sell.

B. Filing a suit for specific performance of the instant Agreement to sell.

Vibhanshu Srivastava
Advocate, Lucknow
9444 Answers
255 Consultations

5.0 on 5.0

Hi, you should file a suit for specific performance in court .. If he appears before court and shows incapability to execute sale deed , his amount gets forfited ..

Hemant Chaudhary
Advocate, Gurgaon
4627 Answers
67 Consultations

4.9 on 5.0

1. You have extended till 31st December the time to execute the sale deed. If he does not pay the remaining amount by this date then serve a lawyer's notice for cancellation of the agreement on him and forfeit the advance he had paid you. Thereafter, you will be free to sell the land to another prospective buyer.

2. Alternatively, you may also file a suit for specific performance against the buyer to seek a decree against him to either execute the sale deed or pay you the amount of sale consideration agreed upon in the agreement.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Dear Client,

What are the provision for default in making payment on time.

Cancel the deal by sending legal notice, and find another buyer.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Hello,

Since the purchaser is not abiding by the terms of the agreement you are liberty to cancel the agreement. Also, you may forfeit such amount of the advance as agreed between you two.

Till then you may serve him with a legal notice to abide by the terms of the agreement, failing which you shall take action to the above terms after 31.12.2017.

Let me know if I can be of further help.

Regards

Anilesh Tewari
Advocate, New Delhi
17968 Answers
377 Consultations

5.0 on 5.0

If you have the agreement registered then it is enforceable in law otherwise it shall be a mere receipt for the payments made or received.

The dates what you have mentioned in your query contradicts to your statements.

Since you have committed to wait until 31.12.2017, you have to wait for the expiry of that date giving time to the buyer.

Any action taken in haste may be a problem to your own case.

T Kalaiselvan
Advocate, Vellore
80016 Answers
1674 Consultations

5.0 on 5.0

Specific performance suit be filed

P V Reddy
Advocate, Hyderabad
422 Answers
3 Consultations

4.2 on 5.0

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