Hello..I intend to buy a plot in Bangalore and got in touch with the seller / property owner directly. I understand that he has made a agreement of sale with other person( agreement of sale is not registered) and is valid till end Feb 2020. the reason seller wants to deal directly is, the previous agreement holder pretended to be the buyer, but now he intends to sell to others jacking the price and we understood he is a agent and not genuine buyer. Need to understand, can owner cancel the agreement without any legal consequence or get into other agreement with me which is registered?Pl support with your comments and suggestions
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
1. There cannot be two agreements with two different buyers at the same time, for the same property.
2. Let the seller cancel the "Agreement of Sale" already entered into with the reseller.
3. After the agreement of sale is cancelled only, you can enter into fresh agreement of sale.
4. To give correct advice, one has to look into the clauses under the breach of contract and solutions specified for cancellation, etc..in the agreement of sale.
1) during subsistence of earlier agreement he cannot sell property to you
2) earlier buyer would file suit seek injunction restraining sale of property to you
3) earlier buyer would file suit for specific performance
4) seller cannot cancel agreement unilaterally
Owner can cancel the agreement with it other party but if the other party suffers loss he may approach court and seek directions against the said cancellation
See if this agreement is not cancelled mutually or by order of the court the other side can file for specific performance of the that agreement and that can raises issues and litigation.
- As per the Registration Act , if the agreement to sell is unregistered , then it have no effect for the purpose of Section 53A of the Transfer of Property Act, 1882. It means that agreement to sell which is unregistered cannot be admissible as evidence.
- Since , the seller has not given the possession of that plot to the buyer with the execution of the said agreement to sell , hence , the seller can cancel the same after sending a notice for cancellation to the buyer.
- Further, if you will purchase without cancelling the earlier sale agreement duly executed by the seller , then in future may face trouble.
- Before Feb,2020 , the seller can cancel the deal with that purchaser of the property as well.
1. The seller have to cancel previous agreement with buyer by sending him a notice of cancellation mentioning that you are agent and not buyer of property and seller is not intend to sell the property through agent
2. After cancellation of agreement he can make agreement with you and get it registered
3. He have to refund the advance taken from previous buyer before making agreement with you.
Since there is an existing sale agreement, without cancelling the same, the seller cannot venture into selling the same property to a new buyer.
Whether the previous buyer is a gent or buyer, the question is that he has entered into a sale agreement with the vendor, hence if the proposed sale with you goes ahead, the previous buyer will file a suit against the vendor and bring this property into dispute and he may even implead you as a necessary party to the suit.
Thereby you may lose your peace after buying the property and you will be frustrated and would be under stress till the legal dispute is solved or disposed by court of law.
Before that you would have spent a lot of money, time and energy towards this litigation/court case.
Do you want to undergo this stress and hardships by desiring to buy this property which will definitely put you in trouble immediately after you buy it.
You may obtain a legal opinion from a local lawyer before venturing into investing into this asset.
1. Even if the seller serves a legal notice to buyer for cancellation of agreement to sell it will not foreclose the remedies of buyer against seller. The buyer can still file a suit for specific performance of the agreement to sell and seek a decree against seller to direct him to execute sale deed in his favour and also seek temporary injunction against seller to restrain him from creating third party rights during the pendency of the suit.
2. If seller succeeds in selling the property to you before the grant of temporary injunction by the court then also the plaintiff can maintain his suit against you and seek cancellation of sale deed executed in your favour.
1. An Agreement to Sale CAN be cancelled by given proper reasons via a Legal Notice to the Buyer party. This is applicable till the time Sale Deed is finally registered after receiving full payment.
2. In the case instant, IF you propose to buy such property, THEN show all the originals to a local Property Lawyer and ask him to submit a "Title Search Report" about the present status of property, pending litigation and his opinion on buying such property.
If agent has pretended himself as buyer than by issuing legal notice, agreement can be revoked.
Dear Sir,
Such instances are very often in Bangalore. You can get another agreement only if the preveous buyer (agremment holder) signs as consenting witness and cancel his agreement otherwise he may file a case for Specific performance and both you and your vendor will be in trouble. Non registration can be cured by paying penalty by the first agreement holder.
Seller can cancel the agreement to sell as the purchaser has failed to comply with the terms and condition of the agreement.
