Validity of both registered and unregistered agreement of sale
We had sold our Agri land for another person for 20 lac n received 1 lac as advance , 4 months is written on the agreement for execution but now it's been 7th month from date of agreement, The Buyer is not paying balance n registering at all......everybody is saying the Agreement has 3yrs validity......due to his non payment we had lost the house to which we had committed.....n my sis marriage got cancelled. .....now we are in the position that we can't sell land to others n he is also not paying money.......Kindly Help me thank u.......and pls let me know the validity of registered agreement too.....Thank you...
Asked 1 year ago in Property Law from Bangalore, Karnataka
1) it is necessary to peruse agreement for sale to advice .
2) if as per agreement for sale 4 months time was given to make payment and purchaser failed to make balance payment of Rs 19 lakhs you should have issued notice for cancellation of agreement on the expiry of period of 4 months .
3) contact a local lawyer cancel the agreement and refund the earnest money paid as per provisions of sale agreement
Thank u for ur Ans Sir, Actually He made two agreement from My parents One is registered and another is unregistered for two different amounts , in registered he mentioned the amount which is much less than Wat I mentioned above ...hence which agreement holds legal here.....Can we have provision to sell the land to others since land rates are increased, by repaying his advance......If he won't agree to cancel agreement Wat actions do we need to take on him?
Asked 1 year ago
1) as mentioned earlier it is necessary to peruse agreement for sale entered into to advice .
2) whether in registered agreement time was essence of contract . please clarify . did it mention that payment has ot be made within 3 months ?
3) what is clause in contract regarding failure on part of purchaser to make payment?
4) is there any clause that balance amount would be paid only after you satisfy purchaser about title to the property?
5) you can issue legal notice for cancellation of agreement on failure of purchaser to pay balance amount and refund Rs 1 lakh paid .
6) deed of cancellation will have to be executed by both the parties in respect of registered agreement .
7) only then can you sell your land to third party .
8) if purchaser refuses to agree for cancellation of registered agreement for sale you can file suit for specific performance to direct purchaser to make balance payment
1. It appears that time was essence of contract at least in the circumstances you had to face pitfalls.
2.I Would advise you to cancel the agreement and sell the same to another person. First reap benefit out of your own land.
3. Since time has expired , you would commit no actionable wrong by selling to a third party.
1) As the purchase has not honoured his part of the contract of making the remainder of the payment within stipulated time, you can send him a legal notice cancelling the agreement.
2) He will have to come to the registrar's office to cancel the agreement.
3) If he refuses too come or disagrees then , you can file for a suit for specific performance.The ganger however is that you will only be able to enforce the payment of whatever is shown in the registered Agreement for Sale.
As per the terms of the said agreement,after the period of 4 months,it has been automatically cancelled unless both parties mutually extended the time to a further period.
So,you can switch off from the agreement after sending intimation of cancellation to the invalid agreement holder and seek a new purchaser for your property.
1. Since the prospective buyer has not honoured his promise to pay the remaining amount within the agreed time of 4 months you may cancel the agreement by sending him a lawyer's notice.
2. The earnest money of 1 lac is to be refunded to him.
3. To cancel the agreement the prospective buyer shall have to appear before the registrar. You can sell the land to another buyer only after the agreement is cancelled.
4. If the buyer does not come forward to cancel the agreement then you can file a suit to mandate him to honour the agreement and pay the remaining amount of 20 lacs.
1. Was there a cancellation clause incorporated in the said agreement wherein it was mentioned that the agreement will be cancelld automatically (and the advance money will be forfeited), if the other party fails to pay the balance amount within the stipulated period of 4 months?
2. If yes, then send the otherside a cancellation letter informing him that the said agreement stands cancelled for his non complying with the terms,
3. Return the advance amount treceived by you if there is no forfieture clause in the said agreement.
1. Why was there two written agreements? Were they executed on the same date?
2. As asked in my earlier post, was there any cancellation clause in the said agreements for not complying with the payment terms?
3. If yes, send him a letter duly cancelling the agreement as suggested in my earlier post and start your sale drive afresh.