• If registry is not done on the date mentioned in agreement to sell

I invested in a underconstructed builder floor and have paid some amount as cash and some by cheque. The notary agreement signed between both parties says that the registry should be done on or before 26th june and the balance amount shall be payable on registry, however construction is not yet complete and bank is not ready to disburse loan on present construction status.
1) What are the consequences if registry is not done on the date mentioned in the agreement? 
As a buyer what can i do to safeguard myself legally? 
3) can builder cancel this deal stating that registry was not done on time?
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

Lawyers are available now to answer your questions.

15 Answers

If not register on time then as a buyer uh may file a complaint case against him to the consumer court.... And ask the builder to refund back your money....however, before giving you proper advice on that agreement I had to check that agreement ND it's terms ND condition ...

For more detailed info uh may contact me

Nishant Bhadoria
Advocate, delhi
73 Answers

4.8 on 5.0

1. If the registry is not done before the said date the seller can file a suit for specific performance against you.

2. You should serve a notice to the seller seeking a little extension for registration of sale deed and also site reason that you are having difficulty in procuring the funds from the bank and and still want to order the part of your agreement and just need some extension for the same and sign an extension agreement, supplementary to the agreement to sell.

3. Yes, he can but since is also at fault, you can approach RERA and seek possession or refund, along good damages and interest as the construction still not complete.

Siddharth Jain
Advocate, New Delhi
5930 Answers
101 Consultations

5.0 on 5.0

1. see it can be breach of the agreement from the builder side you can withdraw from the project and can seek compensation however you can extend time for such registration if you wish.

2. Issue a legal notice to the builder further complaint before the RERA authority.

3. No breach from builder side he cannot cancel the deal on the contrary you are entitled to compensation for delay.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Hi, if the construction is delayed it is the builder who had defaulted the agreement ... Either , you can mutually extend the time of registry by making a fresh agreement or you can ask for refund from builder as the construction is delayed by filing a complaint at RERA

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

Construction not yet complete usually bank will not sanction a loan , it is the default of said builder not yours, there is no arise cancel the deal, and you will convince both bank and builder for the same in writing only, it will help to you in future. All the best.

C. V. Jadhav
Advocate, Bangalore
545 Answers
18 Consultations

4.7 on 5.0

1. The date of execution of sale deed can be mutually extended by builder and buyer.

2. If the builder cancels the sale agreement then he is liable to refund the advance paid to him.

3. Hope you have taken receipts of the amount paid in cash.

Ashish Davessar
Advocate, Jaipur
30761 Answers
971 Consultations

5.0 on 5.0

Here the execution of agreement is violated due to the fault of builder. So in this juncture you have two options either withdraw from the agreement and ask compensation and damages O R continue the agreement and the date of execution of sale deed can be mutually extended.

What remedies are available in case the builder delays the construction of the building?

1. You can ask for a refund. If the builder delays the completion of the construction beyond the stipulated time, you are entitled as a property buyer to seek a refund from the builder. Demand compensation from builders for construction delays

2. If you are buying the property for personal use, you can file a case in the consumer dispute redressal commission at all the three levels i.e the district, the state and the national commission depending on the value of the property or the amount of damage you have suffered. Any dispute over 20 lakhs can be directly filed before the State Commission and any dispute over 1 crore can be filed before the National Commission in New Delhi. Any dispute for a value lower than 20 lakhs has to be filed in the District Commission in your District.

So send a legal notice. Once a legal notice is sent the builder may take action to solve the problems and you can save the needless time and expense involved in going to court.

Builder could not unilaterally cancel the agreement.

Ajay N S
Advocate, Ernakulam
3991 Answers
93 Consultations

5.0 on 5.0

1. If the registration is not possible withing ht mentioned date then make a supplementary agreement to extend the date of registration.

2. If time mentioned in the agreement is essence of the contract then it can be cancelled by the developer . So make an additional agreement to extend further the date of registration.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Builder can terminate agreement if you fail to make balance payment and register same deed

2) terms of contract are sacrosanct and binding on parties

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

Dear client,

You have to extend date of registry. If possible try to have registered agreement.

Jaswant Singh
Advocate, Gurugram
926 Answers
2 Consultations

4.8 on 5.0

Hello,

Amend the agreement . The builder cannot object it.

Thanks and regards

Swarupananda Neogi
Advocate, Kolkata
2941 Answers
6 Consultations

4.7 on 5.0

Hello, just to safeguard yourself, you have to mark your presence before the subregistrar. You have to follow the procedure. Kindly contact me for detailed discussion.

Akash Gupta
Advocate, Gurgaon
66 Answers
2 Consultations

4.8 on 5.0

If there is any grace period then registration need to be completed within that. If not done then either the agreement need to be corrected by assigning another date or it need to be cancelled and you will get back the money which you have invested earlier.

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

4.0 on 5.0

This is my response to you:

1) What are the consequences if registry is not done on the date mentioned in the agreement?

Answer: The registry should happen on the 26th otherwise then the seller can take action against you. This is because you have violated the terms of the contract from your end therefore he can state that you are legally liable;

2) As a buyer what can i do to safeguard myself legally?

Answer: Therefore make sure you have made the balance payment otherwise he would initiate legal action. Also approach the registrar and do the registry;

3) can builder cancel this deal stating that registry was not done on time?

Answer: Yes he can cancel the deal;

This is my response to you:

1. If the building construction is not complete then why are your going ahead with the transaction?

2. Has the OC and CC come? Has he given a specific date?

3. If the construction is not complete and there seems to be no chance it will be, you may also back out from the transaction;

4. Make sure you don't have to forfeit any amount for the backing out from the transaction;

5. The sale looks suspicious therefore after verifying everything then only go ahead with the sale.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

You have to intimate the seller your ready and willingness to get the sale deed registered in your name after payment of balance of sale consideration amount, one week prior to the date of expiration of the agreement.

If the seller is not inclined perform his part of contract then you may file a suit for specific performance of contract against the seller.

The bank may not disburse the amount until the construction is completed.

The builder cannot cancel the booking on his own ,he has to follow the rules.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer