1) You can ask him for more price as per market value. If buyer is not ready to pay anyhow agreement get cancel, if you have mentioned 90 days completion of transcation.
Unregistered sale agreement cancellation procedure
Dear sir, I am Ramu ,I have a property at Jagggayapeta and I have made unregistered sale agreement with buyer on 8 th August 2018 with time limit 90 days .buyer has paid Rs2 lakhs intial amount and balance amount he has to pay before 90 days and register the property in his favour as per agreement now 90 days going to end on 9 the December 2018. Now buyer asking one more month time for registration due to his family problems.that I am not agreed because I need to clear my out side liability which I brought higher interest rate . already I have promised to them I will pay before 8 th December 2018 and Now land value is increased so please clarify what to do in this case and I need to cancel the unregistered sle agreement but buyer asking one more month time . Please guide in this regard.
Asked 5 years ago in Property Law
Religion: Hindu
8 Answers
1) you are not bound to extend time
2) as per agreement for sale time for making balance payment was 3 months
3) inform purchaser on 8 th December that agreement stands cancelled and refund the advance amount received
Time is an essence of contract. The parties have agreed to perform at a given time agreed in a contract and shall not extend the specified time in a contract.(As per sec. 55 of The Indian Contract Act, 1872 says that When a party to a contract promises to do a certain thing at or before a specified time, or certain things at or before specified times, and fails to do any such thing at or before the specified time, the contract, or so much of it as has not been performed, becomes voidable at the option of the promise, if the intention of the parties was that time should be of the essence of the contract)
As per the Registration Act, 1908 all agreements of sale of immovable property worth more than Rs.100/- compulsorily be registered.The non-registration invalidates the transaction altogether.
So in your case the buyer has only remedy to ask return the advance amount. He has no right to raise any claim for registration of immovable property infavour of him. So Wait until 9 the December 2018. After that date send a legal notice and inform the other party that you are rescind from the contract due to nonpayment and fulfillment of clauses in contract
Dear Client
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.In your case, the agreement provides for payment of the balance amount within 3 months, a condition which has been dishonoured by the prospective buyer. Thus, you can proceed to cancel the agreement by issuing a legal notice to him through your lawyer.
However, you have to refund the money paid by the purchaser as a token amount. Thereafter, you shall be free to sell the property to any one you desire. Do not sell it to anyone else without cancelling the said agreement..
1. If there is a time limit of completing the sale within a time limit it can be strictly complied with provided in failure to do so there is mentioning of cancellation of agreement. In other words the time must be mentioned as ' essence of contract' so the failure to complete the sale within the stipulated time lead to cancellation of it.
2. So refer to the agreement and send him a legal notice on that account . If you cancel the agreement refund his money as well and then make a fresh agreement with a new buyer.
Issue a notice to buyer on 9 giving him final week of extension to make payments in lieu of property or agreement stands and get it registered if he fails to do same agreement stands cancelled and return the amount with some deduction as expense occurred to you.
Dear Client,
If you will not agree to extend due date than after expiry of 90 days, agreement will seize. Either you return the earnest amount or forfeit it if clause in agreement.
Unregistered sale agreement is not valid and cannot be enforced in the court of law.
Hopwever it can be used as a receipt for the money given by the buyer towards advance for the sale consideration amount.
You can issue a notice to him stating that if he fails to pay the balance amoiunt and get the sale deed registered in his name, then the sale agreement will be cancelled and he can collect his amount after deduction of administrative costs.
