Q.Verbal discussions were held with buyer 10 days before the scheduled date of part payment and he had sought some more time and desires to club it with final payment. Is any notice in writing required to be given to him at this juncture; or for that matter after lapse of date of part payment in case he fails to make part payment ? (though informal communication through sms has already been made to his dealer to ask his client to pay as per scheduled dates. Moreover my client does not wish to give formal notice at this juncture)
Ans. It does not matter in case he clubs it with final payment. The sale deed will be executed and registered on making full payment and in case he fails to make the full payment before execution and registration of sale deed i.e. on due date, the amount of bayana money i.e. 10% will be forfeited.
2. In case buyer fails to make the final payment, can advance amount paid by buyer be forfeited without any notice in view of clause 8 of agreement. Is the word 'advance amount' used in clause 1 has the same connotation as earnest money used in clause No 8. It is to note that advance amount mentioned in clause 1 was the initial 10% amount received at the time of entering into the agreement.
Ans. Only bayana amount i.e. 10% will be forefeited.
3. Is any notice or intimation required to be given to the buyer or any legal steps be taken to forfeit the advance amount?
Ans. No notice is required to be given to the buyer. It is understood that he failed to make the full payment on due date. However, you have to get marked your presence in the office of Sub Registrar concerned that you visited the office of SR on the date of due, buyer did not turn up to get the sale deed registered and executed.
4. Alternatively Can my client sue buyer for specific performance in view of clause 9. If yes, how much time does it take to get the decision of the court - Long Drawn or straightforward?
Ans. Both clause 8 and 9 are contradictory. Once the 10% amount of advance is forfeited what remains to file suit for specific performance.