• Purchase agreement of land

Good evening sir. We sold our land of 3000 sqft area located in pune in the year 2012 at the total rate of Rs.3100000. But that time the purchasing party gave us cheque of amount 500000 only as advance. After few months they refused to buy the land n said us that we can return the advance money given to us as per our convinience. As we are not economically that much strong we were unable to return the whole amount once. Few months before we decided to sell the land to another party so that we can return that advance payment of 5 lacs. But the 1st buying party took objection on our decision n sent us legal notice that we cant sell the land as we have done agreement with them. And the party is saying that they are ready to purchase the land in that old rate only. But sir at that time the rate was 10lacs per 1000sqft & now the rate is 15lacs per 1000sqft. I would like to know that can we ask them to make the agreement in todays rate. Because we have not yet recieved the remaining amt pther than 5lacs. And we have to suffer the loss of 15 lacs if we did agreement in old rate. The agreement is not legally registered in govt register office it only notarised.
Asked 3 years ago in Property Law from Pune, Maharashtra
Religion: Hindu
1) what were terms and conditions of agreement ? 

2) if purchaser failed to make payment was deal cancelled by you ?

3) was there any forfeiture clause in contract?

4) did you reply to legal notice 

5) it is necessary to peruse clauses in agreement .

6) in the event  you sell the land original purchaser will move court and obtain a stay 

7) better arrive at amicable settlement with the original purchaser 
Ajay Sethi
Advocate, Mumbai
46869 Answers
2772 Consultations

5.0 on 5.0

Hi, you are not going to sell the property at old rate if they agree for new rate then proceed further.

2. When the possession of the property is not delivered then it is not mandatory it has to be register before sub- Registrar.

3. Better you have to reply the legal notice and if they are ready to purchase in new rate then you can go ahead with the transaction.

4. In the meantime you can file a caveat petition in the court that, they may not get injunction order restrain you from sale the property.
Pradeep Bharathipura
Advocate, Bangalore
4561 Answers
204 Consultations

4.5 on 5.0

1. You had not sold the land. What you had done was to execute an agreement to sell the land on a subsequent date for 3100000 out of which 500000 was paid to you as advance amount at the time of the agreement. The purchaser subsequently backed out of the deal.

2. Was a lawyer's notice for cancellation issued by the purchaser to you? What is the cancellation clause mentioned in the agreement? The advance amount is generally forfeited. If you have not included this in your agreement then it is a blunder.

3. Once the deal with the purchaser is called off you are at liberty to sell the land to another purchaser. 

4. You should engage a lawyer to reply to the legal notice issued to you and thereafter proceed to sell the land. 

5. You can certainly ask the purchaser to enter into a fresh agreement at the current market rate. The stamp duty will be payable at the market rate.
Ashish Davessar
Advocate, Jaipur
23176 Answers
641 Consultations

5.0 on 5.0

1. When the said party refused to buy the plot, you should have cancelled the agreement in writing duly refunding the advance amount taken from them,

2. Atleast now, you send a letter cancellintg the earlier agreement for their not paying the balance amount,

3. Simultaneously enter in to agreement with thenother party and register the sale deed after collecting the entire consideration,

4. Refund the advance amount you had collected to the 1st proposed buyer.
Krishna Kishore Ganguly
Advocate, Kolkata
18806 Answers
454 Consultations

5.0 on 5.0

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