If purchaser has failed to make payment file suit for specific performance to direct seller to make payment
2) if you want to cancel agreement file suit to cancel the agreement as full consideration has not been paid by purchaser
Cancellation of sale-agreement by seller
Sirs Seller sold his Flat in Mumbai to Purchasers in Rs.100 in Month of February Purchaser paid Rs.50/- to Seller and requested that he can pay balance Rs.50 by taking loan from bank so he requested to execute Agreement to sale and register it Accordingly the Seller made agreement to sale in favour of purchaser and registered amongst other with two conditions as below :- Payment of sale consideration of Rs. 100/- shall be paid as under :- (A) Rs.50/- received by cheque before execution of the Agreement (B) Rs. 50/- balance will be paid by Purchaser within 45 days by taking Home Loan There is No clause in Agreement about forfeiture or interest if purchaser delays the payment Purchaser has not made the payment till today 5 months have passed. Seller offered the Purchaser two options :- (1) either to cancel the Agreement to sale and take back his Rs.50/- so that Seller can sell the Flat to any other third person or (2) pay the balance and take possession of Flat But Purchaser refused and said that he wants 20% more amount and not only that but the Purchaser sent a letter to the secretary of the Housing Society requesting therein to not to allow the Seller to sell his Flat till cancellation of his Sale-Agreement, though Secretary did not agree with him and asked him to bring Court’s Order Seller has good intention to repay the amount to Purchaser Please advise how the seller can cancel the Agreement to sale so that he can sell his Flat to third party Please Guide HARIOM
Asked 6 years ago in Civil Law
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11 Answers
TIME IS THE ESSENCE OF A CONTRACT and become voidable at the option of the promiser/seller. You are free to sell the property. OR issue notice that agreement is expired for non compliance of agreement by the purchaser.
If the agreement is registered seller can approach the court and file the suit to cancel the said agreement. It will be cancelled but court order.
1. See the seller can issue a notice finally giving him 15 days to give all amount and come and register the flat in that if the purchaser fail the seller can file a suit for cancellation of the agreement and can deposit the amount in court. Purchaser is not entitled to any extra amount even the seller can deduct expenses.
Dear Client
If the Buyer is creating problem with the purchase then you can file a case of specific Performance Under Specific Relief Act to get the court order for either make the Remaining payment or cancel the agreement by taking the money back.
you can also seek compensation for breach of agreement by purchaser.
You can send him notice, on will be paying balance amount in next 45 days ground here the agreement to sale gets cancelled.
if he didn't turn up to complete the transaction.
So you send notice to him cc to Secretary, Registrar regarding cancellation of agreement to sale and intimation to sale flat to new buyer.
If you want notice to by sent me, do let me know.
In this type of matter when terms and conditions of the agreement violated by any of the party then it ends on the very day, in your matter clause of within 45 days is sufficient to cancel this agreement and now this agreement is no where so forfeit the amount paid to you and sell to any one you wants.
seller can cancel the agreement to sell as the purchaser has failed to comply with the terms and condition of the agreement, there is a clause mentioned 45days.
seller can cancel the agreement and also claim damages and loss suffered by him under contract act.
contact local property lawyer.
1. simply send a termination notice to buyer stating that the agreement is terminated due to non payment
2. with above letter, send him refund of 50%
3. issue public notice in local newspapers informing all that you have terminated the registered agreement and buyer has no right whatsoever in the flat since he defaulted
4. if buyer is aggrieved he can approach court for specific performance in which he will miserably fail since he has to show readiness and willingness to pay, which is conspicuously absent in this case
5. only problem in this case will be cancellation of registered document for which even the seller can file a suit against the purchaser for cancellation but that will obviously take long to resolve
6. buyer cannot lock someone's property like this by not paying balance and instead demanding additional money from seller
7. his letter to society is completely illegal and the secretary did the right thing by asking him to bring court's order
The seller cannot execute a registered cancellation deed just because the buyer failed to buy the property within the stipulated period of time because it is valid up to three years where time is not essence of contract, however he can approach court seeking cancellation of the sale agreement on the basis of the conditions therein in the registered sale agreement.
- As per the information mentioned in the present query, makes it clear that you been a very good seller otherwise people don’t refund the amount even if it is not mentioned in the agreement on the presumption of loss to them in the time already lapsed.
- Agreement stands cancelled at the same moment when the 45 days time period gone.
- There cannot be any stay to not to sell it to someone else or till the time agreement is not get cancelled.
- Seller can sell it and then if the purchaser is aggrieved then he can move before the court of law where surely he won’t get succeeded.