Cancellation of sale agreement
In the process of sale of our property we have signed an agreement with our tenant for lesser amount than the correct amount (government rate) due to lack of knowledge. How can we get the correct amount from the buyer or is there any chance of cancelling the agreement? If we violate the agreement can he go to the court? Kindly suggest how can we proceed? The agreement is not registered and written on a stamp paper. Registration of the property is due.
Asked 3 years ago in Property Law from Visakhapatnam, Andhra Pradesh
Thank you for posting your query.
You may sign another agreement for cancellation/modification of the earlier agreement. But that has to be done with the consent and signatures of both the parties.
If you violate the agreement i.e do not execute the sale deed, then the other party can file a suit for specific performance of the contract.
Do let me know if you require any further assistance.
Since the sale agreement is not registered, the buyer can not ask for specific performance of the contract but can claim damages only. As advised by Adv. Nishant Bora, you can modify the agreement to mention the correct amount. It is good that the agreement is not registered otherwise your tenant would have defended his possession under the provisions of Transfer of Property Act.
Advocate, New Delhi
I agree with what my two learned colleagues have advised.