1) If you have already signed sale of agreement whether in that what price you had made it guide line value or market value. If termination period is mentioned than wait for it to get cancelled automatically the Agreement to Sale will get cancelled.
Buyer refuses to take back the advance
Myself and the buyer have agreed for purchase of my independant property .We have signed a sale agreement and I have received the advance of 25Lakh against the total amount of 2 Crore. Since the terms and conditions set by the Buyer is not agreeable with Myself ( Seller ) , we were not able to close the sale agreement in 90days and hence the actual registration is not performed. Now the buyer is not agreeing to accept the Advance amount nor he comes forward for cancellation of sale agreement. Request your inputs on the next steps that I should take it forward. Also as seller, I requested buyer to have the property registered as sale agreement and not Power of Attorney and also the Buyer wants to register as per the guide line value and not the market price ( here the guide line value is less than the market Price ) . This terms and conditions are not been agreed by buyer . Request your inputs .
Asked 5 years ago in Property Law
Religion: Hindu
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11 Answers
Sir issue a legal notice to buyer on all this condition for cancellation of the agreement take help of an Advocate to draft notice asking buyer to come forward for registration on actual amount or if he doesnot the agreement stand cancelled. If in notice period he fails file a civil suit for specific performance / cancellation of the agreement.
There are chances that the property can be registered and the amount which is mentioned in the sale agreement if the market prices more than the sale agreement price and both the parties are agree to then they can registered the property and the market price where the payment of stamp duty is more than that of the circle rate.
Is there is agreement to sale then there is no point of talking about any condition by the seller which is not incorporated in the agreement to sale this agreement can be forced to be followed as specific performance of agreement by the other party and you cannot backoff from the sales registration and in case you denied registration then it can be executed by the court on your behalf on the court order and the remaining consideration will be deceived by court and issued in your favour.
If there is clause of cancellation of agreement in agreement to sale then it will stand cancelled on non fulfillment of such clause otherwise send a notice for revocation and cancellation of agreement to sale.
Return the advance money through rtgs or some legal mode.
1. If the terms and conditions were not mutual agreeable then why did you sign the agreement to sell in the first place?
2. Once the agreement has been executed it binds both parties thereto.
3. The buyer may want to sue you for specific performance of contract through a suit for specific performance. This is why he is not accepting the advance back. If he does it then he will forfeit the cause of action.
4. The stamp duty is always paid on the circle rate set by the DC, not the market value. Of course, the guideline value will be lesser than the market price.
It is necessary to peruse terms and conditions of agreement fir sale to advice
2) since terms and conditions set out by purchaser is not agreeable you can cancel agreement and refund the advance money received by you
3) reasons should be mentioned for cancellation namely that purchaser is not willing to mention the sale price in sale deed
And wants sale only through POA which is not acceptable
4) send letter of cancellation by email / speed post and enclose cheque of Rs 25 lakhs
you can cancel the agreement to sell as the purchaser has failed to comply with the terms and condition of the agreement. The cancellation of an agreement to sell (sale agreement) depends on the terms mentioned in the agreement
Thanks for the update and please find some of the queries that i like to clarify in continuation with the original content. Sale Agreement validity is 90 days and it is completed as Mid Oct 2018. Sale agreement mentions clearly Rs2 Crore as the total value of the Sale and the agreement also mentions as Sale deed and POA. Also we havent discussed during the agreement phase , whether we register in guideline value or Market value. Since the market value is more than the guideline value, the buyer is insiting to register the sale deed as guideline value to save the Stamppaper cost . As seller, i need the registration in the market value, since he is accepted to provide everything in Bank transfer and also for the sellalso for the IT records. I have sent whatsapp messages asking for confirmation on the sample amount Rs1000 that is sent to is Bank account. He has not confirmed on the amount that is credited. He has regretted not to send. Also he is demanding for the interest amount for the advance 25Lakh since it is more than 90days. Also i have mentioned in the whatsapp for confirmation on cancellation agreement . He hasnt responded positively. As seller I am ok for the sale, if he does the registration as Sale deed and the total value as Rs2Crore (selling value ) and not Guide line value ( 1.5 Crore ) Request your inputs to way forward.
Asked 5 years ago
Then the agreement stands cancelled on completion of 90 days.
You do not need to pah interest on advance amount because the buyer is responsible for nkn performance of agreement and you are willing to proceed with sale deed.
1) Since agreement for sale mentions sale consideration as Rs 2 cores you cannot be forced to sell property for Rs 1.5 crores
2) Mention that agreement stands cancelled as purchaser has failed to make balance payment within 90 days
3) refund Rs 25 lakhs . No question of paying interest as there is no such clause in agreement for sale
Sir if everything come in your account then the sale deed should be on 2 cr. It cannot be on guiding value it can causes issues in future like of income tax. Further giving him legal notice for a week is necessary for cancellation of same.
You can. Return advance if he agrees no interest is payable.
Dear Sir
If the buyer is not co-operative then get issue a legal notice cancelling and forfeiting the advance amount in full. Let him go to Court.
