• Cancellation of agreement to sell

I have entered into an agreement to sell my house in Gurgaon with a buyer and taken some amount as advance. Now I have come to know that the party is none other than broker himself. Kindly advise if I can cancel the agreement and what should be done? Agreement has been done on Rs 100 stamp paper . Claise is that I will have to pay double the amount to cancel the agreement. However there is one flaw which I noted in the agreement that the date of purchase of stamp paper is 15. Dec and agreement date printed is 15 November. So will this flaw make the agreement void? Also as per the date of agreement that is 15 November as might be typing error in it , I was not present on the place of signing the document. Kindly advise how can I cancel the agreement and I am ready to return the advance to the buyer as well. If the buyer Sue's me will the flaws of agreement not registered, mistake in date of agreement make it void and can be in my favour? I do not want to sell the property as the broker never made me meet the other party and also signed himself in the witnesses and is paying me too less an amount which I came to know at a later stage. Kindly help as I feel cheated in this case though I trusted the broker and signed the agreement believing him that he has got it signed from the buyer. Regards
Asked 4 years ago in Property Law
Religion: Hindu

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11 Answers

There must be an exit clause in the agreement and you need to use the clause and give notice to other party for the cancellation of the agreement.

The date of purchase of the stamp paper is material to decide it's validity and if this is just a typo mistake and signatures if any have date then this could be contested.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Send him notice stating you are intending to cancel agreement and you are ready to pat entire advance amount since the original owner was not the person who made agreement and as such due to fraud committed you are cancelling the agreement. In case he sues you for damages take ground of fraud misrepresentation and also that The date of purchase of the stamp paper is material to decide it's validity and if it is just a typograohical error and signature if any have date he can contest it.

Swarnarka Chowdhury
Advocate, Mysore
1878 Answers
5 Consultations

5.0 on 5.0

It is necessary to peruse agreement signed by you to advice

2) if agreement contains a clause that you have to pay double amount on cancellation then don’t cancel the agreement

3) agreement can be executed only after stamp paper purchase date

4) purchaser would take the plea that it is a typographical error

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

1. All agreement can be cancelled in the terms so provided or mutually agreed .

2. So only because agreement is executed does not mean that it has to be complied with in all circumstances.

3. A sham agreement or agreement made for speculative investment on the basis of impersonation can best be revoked.

4. So immediately send him a written notice cancelling the agreement and refund his money by NEFT or CHEQUE.

5. Once that is done and money is accepted by the broker he will be free to deal with new prospective buyers .

Good luck.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. Who had made the arrangements to execute the said agreement? Was it done by the said broker cum buyer? If yes, then he has done it purposely to keep the door open for him to deny having entered in to any valid agreement with you conveniently.

2. The said agreement is void at law hence invalid since it was executed on the stamp paper which was purchased after the agreement was executed which is not possible.

3. If you have the bank account of the said broker and the IFSC of the branch where he has his account, then you can return the advance amount with interest by NEFT and thereafter write him a letter cancelling the deal for not executing an agreement.

4. If you do not have his bank account no., send him the said letter to him enclosing a cheque for the said amount of advance paid by him to you.

5. Do not worry about any court case since the said agreement is legally invalid.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

the first thing is to see if the agreement registered and agreement is Notarised and notary mentioned the date???

See first thing is there is no clause of termination of agreement and the other party is adhering to time than agreement is enforceable in general cases.But in your case the agreement is printed on a wrong stamp paper or date of agreement is before the day you agreed so it is invalid on the face of it if he takes plea that it is typographical error and there nothing else to substantiate the date of agreement then it is invalid.

Further also any instrument for transfer of immovable property(agreement to sale and sale deed) is now mandatory to be registered under Registration act as held by supreme court in TG Ashok Kumar vs Govindammal (2010) case.

Supreme Court and high court judgments have held that unregistered agreement of sale will not be recognised in a court of law. An important judgment on this issue was delivered by the Allahabad High Court in the Vijay Kumar Sharma vs Devesh Behri Saxena case in 2007.

So the buyer in your case has tried to play you by keeping himself safe so you can send him a legal notice terminating the agreement and returning his amount through check or bank.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

The unregistered sale a.is not valid in law and not enforceable in court.

You may communicate your decision to cancel the agreement and inform him that you are ready to return the advance received.

Let him agitate you can lodge a criminal complaint against him if he threatens and indulges in any illegal activity on this, if he decides to approach court let him go, you can challenge the same properly.

T Kalaiselvan
Advocate, Vellore
78096 Answers
1543 Consultations

5.0 on 5.0

This agreement can be cancelled strictly in accordance with the termination clause contained in this agreement; and not otherwise.

Due to the defect pointed out by you, this agreement in not capable of being enforced. In any case, since this is not registered, it cannot be adduced in the court as a valid evidence.

To come out of this deal, you just need to refund his, his earnest. Make sure that you refund his earnest through an electronic transfer so that you you may later have proof of this transfer.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Client,

Fitly, Agreement itself is invalid for improper execution. Next, If, he has signed as Witness than how can he be party to the agreement, which is void as person himself is acting his own witness ?

Issue him legal Notice fr cancellation of ATS and refund of amount or might not required to refund.

Depends on language of Agreement.

More precise can be advised on perusal of ATS.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Hello sir , you can cancel the agreement if he has cheated you .. It is advisable to send him a legal notice to him , for the cancellation of agreement.. However, as per clause you are always at a liberty to pay him double the amount and cancel the agreement.. You can contact me in person for sending of legal notice, at my office in Gurgaon..Thank you

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

You can file a criminal complaint in the police station for cheating and criminal breach of trust. And also for forgering the document. Also you can wait for any action from the broker side whether he would file a specific performance suit. You can contact me for further discussion. We are based in gurgaon.

Akash Gupta
Advocate, Gurgaon
66 Answers
2 Consultations

4.8 on 5.0

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