• Cancellation of sale agreement of a land

I have entered into sale agreement with a buyer with terms as buyer needs to pay amount in 90 days.its been 5 days since we have signed this agreement.Now i dont want to sell my land.i want to cancel this sale agreement.how can i do it.Buyer is demanding hefty amount which i cannot pay to break this agreement.kindly suggest
Asked 4 years ago in Property Law
Religion: Christian

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12 Answers

You have not stated that whether this agreement of sale was entered between you both by a registered or an unregistered document. 

If it was by a registered document then you may have to approach civil court with a suit for cancellation of the registered sale agreement for the reasons you may rely upon. 

If it was by an unregistered sale deed then you can issue a legal notice communicating your decision to cancel the same for the reasons you may rely upon and can intimate your ready and willingness to return the amount received as advance towards sale consideration in a time,  date and place convenient to the buyer upon cancellation. 

You can also plan to issue a public notice in this regard intimating the decision of cancellation of sale agreement in a local newspaper which may protect your future interests in case the buyer approaches court seeking any relief in this connection. 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

You cannot cancel same agreement unilaterally 

 

2) terms of contract are sacrosanct 

 

3) in case buyer fails to make payment within stipulated period of 90 days agreement would stand cancelled 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Then cancel it let him file a case in court and recover money

Prashant Nayak
Advocate, Mumbai
31807 Answers
175 Consultations

4.1 on 5.0

Dear Sir,

You just get issue a legal notice and issue public notice and cancel it. Then approach the court if it is registered and get declaratory relief.

Kishan Dutt Kalaskar
Advocate, Bangalore
6135 Answers
483 Consultations

4.8 on 5.0

See if the agreement is entered and if buyer go ahead and pay the amount then you cannot go back from agreement as buyer can file for specific performance suit.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

1. Their is no way you can cancel the agreement without complying with terms and conditions mentioned in the agreement.

2. If in agreement it is mentioned that seller can terminate the agreement by refund of money with interest to buyer then you don't have to pay extra money demanded by buyer.

3. You should only send cancellation agreement to buyer and tell him to collect Demand draft or cash which ever he prefer to take as refund. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1. You are free to serve a lawyer's notice to the buyer for cancellation of agreement to sell.

2. The buyer can file a suit for specific performance against you to seek a decree to compel you to execute the sale deed in his favour.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. An Agreement to Sale, is a tentative arrangement and not a final contract or sale agreement.

2. The owner can rescind /revoke /cancel the agreement to sale, by giving proper legal notice with reasons (self use) and by returning any money that may have been received from the buyer party.

3. AFTER above ,the buyer is "legally" not entitled to stake any claim /rights or negotiate regarding the property.

4. You can ALSO file a Police FIR, requesting investigation and charge-sheet, for offences like intimidation etc.... against the person, supported with all relevant supporting Documents & Witnesses.

5. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Person may come down for settlement.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

What are the terms of the agreement. 90 days is the agreed date for completion of the transaction. If either buyer or seller wants to cancel, what is the penalty clause incorporated in the agreement, whether, either party can forfeit a certain amount from out of the advance amount and refund the balance amount or is there any other clause. 

If you are not sure, then take a copy of the agreement to an advocate closest to you and get it vetted. For whatever reasons best known to you, you have decided to cancel, hence a clause must be there for this. Get the document duly verified by an advocate and find out a way to exit.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

If you will show your willingness to cancel agreement, buyer can file suit of specific performance than court will order you to enforce the agreement. So better find fault on buyer to cancel the agreement.

Find lapse in the agreement citing that - you can cancel the agreement. As of now stop all communication to buyer and also don`t tell him to cancel the agreement, as he will get proof that you are cancelling.

No need to pay anything.

There must be some termination clause in agreement !? 

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

It is necessary to peruse the agreement to give you precise guidance. 

you can cancel the agreement to sell as the purchaser has failed to comply with the terms and condition of the agreement.

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

Ans:- The document is registered??

There is no need to compensate the buyer by paying hefty charges. Only those charges which are paid by both the parties.  

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

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