Hello, My father made a deal to sell 50 cents of his land at the rate of 3.5L/cent in 2013. The buyer paid 50L as advance and promised to pay the rest of the amount in 6 months. They also made an sales agreement (which is unregistered till now) regarding the same. Since, we thought that the buyer will be true to his word, we started to build a new house with the money. We completed the house and it costed us more than 50L, hence we poured in rest of the money form our savings and investments from our father's business too. It has been 4 years since the agreement has been made, he has not yet paid the full money and also never came into any terms with us. Since we are not able to pay back the full money in cash and cancel the agreement, we have been trying some other means as discussed below. - In 2014, we were contacted by another buyer for a co-operation, building house in the land and selling them. he will give us a initial amount of 15L and 6 houses once they are built. - In 2017, we were contracted by another buyer for similar co operation with 25L initial amount and same no of houses. Having these options, we contacted the buyer and asked him to cancel the agreement on the terms that; Either we will give him initial amount (15L / 25L) and rest of the amount in a span of 6-12 months or he can take the first house (costs more than 60L) out of the six houses. When we had meeting in both cases (in 2014 and also in 2017), he would be there initially and say that he will answer about this terms in a week time, then while we contact him after a week for his answer, he will never lift the phone nor respond to us. Since, we cannot ready the full amount in cash currently, we have no other options to give him the money in single payment (which we think he is expecting). if he had come to our terms already in 2014, he would have had his money and we would have no problem. Hence, we are dont know what should we do right now. Speaking of our financial status, I am well settled now, having a good job and good salary paid. Currently, We have no need for selling the land, but since we have his money, we wanted to give it back and solve this once and for all. Kindly give suitable advise. Thanks & regards
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1) if you cancel the agreement you have to refund the advance money received by you . Since purchaser failed to make payment within 6 months you are at liberty to cancel the agreement
2) if you are unable to refund the money take bank loan and repay the purchaser
3) cancel the agreement as purchaser failed to make payment for 4 years
4) don’t sell the property to third party as original purchaser may file suit to seek orders to direct you to execute regs sale deed in his favour
1. SInce the buyer has failed to honor the agreement to complete within the time stipulated or within reasonable time your father has every right to cancel the agreement.
2.So if he cancels the agreement he is bound to refund the money with simpleinterst in one instalment.He cannot make terms of repayment at his own convenience.
3.So the repayment option in such several instalments would not be accepted under the eye of law if the buyer refuses to accept it as well.
4.if he files a sit in court then your chance to get new buyer soon would be finished in no time.
5.Hence do not antagonise him further. Cancel The agreement, take money from another biyer and repay him in full with interest.This is your best option to avoid long litigations which is lurking large on you.
1. Was there any termination clause in the said agreement for sale stipulating that the said agreement will be considered as cancelled if all the terms, including the payment term, are not complied with by the prospective buyer?
2. Was there any clause in the said agreement for sale specifying that the amount paid as advance or part of it will be forfeited unless the balance payment is made with in next specified period of time?
3. Even if there is no such clause in the said agreement, it has already become fit to be cancelled for not being acted up on for an unreasonable period of time.
4. Send him a letter duly cancelling the said agreement for sale which shall make you legally free to deal with the said property with a third party legally.
5. You shall refund him the advance amount paid by him after you can sell of your said property and get the consideration to pay your dues to him.
There must be a clause in the agreement to sell which provides for forfeiture of the advance paid by the buyer if he does not come forward to execute the sale deed and pay the balance amount. In terms of that clause you can issue a notice for cancellation of the agreement to the previous buyer and forfeit the amount.
Dear Client,
Since in both the cases, the buyer is at default, so there shall be no occasion arise, where u have to return money with interest.
Secondly, unregistered sale agreement has no evidentiary value, so its terms cannot be effected through court but just for the purpose of made payment, it can be used.
All u need is to issue legal notice to both buyers, that due to their default, the above agreements stand cancelled and no liability left on ur part.
OR, stay cool, u r not at default, so legal consequences will arise against u, except return of money, so let them approach u, why u bother.
More precisely can be advise on perusal of sale agreements.
If you are having sufficient money to return the advance amount received from the buyer as well as you are in the idea of cancelling the sale agreement (which is otherwise not enforceable because it is unregistered and barred by limitation), you may communicate your decision to the buyer in writing and send it to the buyer by registered post.
If the buyer is not turning up or shows no interest towards this, then you may remain silent till such time he communicates in the future seeking refund of his advance amount.
You can decide next course of action afterwards.
