• Are there any extension period for the land agreement period during the pandemic?

On January 4th 2020 I have signed a sale agreement on a stamp paper for selling the property which is in Coimbatore, Tamil Nadu. The agreement period is 4 months and suddenly COVID-19 emerges and lockdown initiated on March 3rd week. So my question is

1)As the time period for the agreement is expired can I sell that property to anyone as agreement is not valid? Are there any legal issue? 

2)Should I give some extension period as about 1 month period is under lockdown? Are there any such law for extension during pandemic if so how much period
Asked 13 days ago in Property Law from Coimbatore, Tamil Nadu
Religion: Hindu

1. See the agreement could not be complete because of the condition of lockdown it's an executable agreement and buyer can take ground of force majure as things were not in his hand. Therefore, you may after lockdown if lifted give a notice or inform the buyer giving him some time to complete the condition in agreement and can register the property in his favor.

2. See there is no defined period but the agreement could not be completed due to kickdown therefore you may grant him reasonable time and notify same to the buyer if on notice if he fails to respond then cancel the agreement as per procedure of law.

Shubham Jhajharia
Advocate, Ahmedabad
24319 Answers
96 Consultations

5.0 on 5.0

1. There is no law which makes the extension of the period of agreement by virtue of any natural calamity.

If there is any Force Majure clause in the agreement covering this Pandemic kind of things then you can get extension of time.

So the time period has expired though the parties by mutual consent can always extend the time .

If the time mentioned in the agreement was essence of the contract then you can rescind the contract by sending him a notice on that regard and refund him the advance money. 

Devajyoti Barman
Advocate, Kolkata
19581 Answers
278 Consultations

5.0 on 5.0

1. The agreement for sale of immovable property is valid for a period of three years from the date of its execution. 

2. Even if you don't allow the agreement to be renewed beyond the four months period,  it is valid for a period of three years hence the buyer can drag you to court with a suit for specific performance of contract,  therefore you can take a wise decision now itself. 

T Kalaiselvan
Advocate, Vellore
64506 Answers
835 Consultations

5.0 on 5.0

It's better to give a extension as covid is pandemic and no one is responsible for the same. So after one month you can do the needful

Prashant Nayak
Advocate, Mumbai
18628 Answers
34 Consultations

4.6 on 5.0

There is no extension period as such if not mentioned in the agreement. But in case the opposite party files an application for specific performance of contract in the civil court then you have to show that this agreement to sell couldn't be implemented during the lockdown. 

You will have to explain how did you sell the property if you couldn't sell it to the other party.

Rahul Mishra
Advocate, Lucknow
7955 Answers
15 Consultations

5.0 on 5.0

- Since , the government has paused on all transactions, except those that are contractually obliged to go ahead and where an agreement can’t be reached to delay.

1. As per law, an agreement to sell is valid for three years.

- Since, there is time period for the expiration of agreement , the buyer has to register the property within this period , otherwise you are free to sell the property to anyone after cancelling the said agreement and sending a notice for the same to the buyer.

2. Yes, on the ground of lockdown , you can extend the limitation period for next 3 months or as amicably decided by you both ,limited to the expiry of the agreement i.e not more than 3 years. 


- Since the delay is caused by the Covid-19 lockdown , and not due to the fault of intending purchase i.e who entered into an agreement , hence if you will sell the same to third party , in that eventuality , the present buyer can challenge your transfer , and further claim for damages etc. legally. 

Mohammed Shahzad
Advocate, Delhi
2540 Answers
35 Consultations

5.0 on 5.0

You should not sell the property

 

2) since nearly 2 months of the period was under lock down you should in case buyer seeks time extend  validity of agreement by 2 months 

 

3) if buyer does not want extension refund advance received and cancel the agreement 

Ajay Sethi
Advocate, Mumbai
74527 Answers
4458 Consultations

5.0 on 5.0

1. The agreement does not cease to be valid just because of Covid-19 and lockdown imposed. Unless the agreement is cancelled, it holds its ground.

2. The duration of the agrement can be extended mutually.

3. If without cancellation of the agreement you sell the property to someone else the buyer of the present agreement will have a cause of action to sue you for damages of amount equivalent to the sale consideration mentioned in the agreement.

Ashish Davessar
Advocate, Jaipur
28664 Answers
835 Consultations

5.0 on 5.0

1. Due Force Majeure conditions as provided under Contract Act,  the Lockdown period & irrespective of any criteria, shall have to be extended /deferred for the entire lockdown period.

2. You are advised not to sell since despite expiry date mentioned in agreement, the expiry date will remain suspended, till entire lockdown period.  This will avoid long legal litigation's.

.

 

Hemant Agarwal
Advocate, Mumbai
4338 Answers
23 Consultations

5.0 on 5.0

1. Yes you can continue to sell it with others

2. Its upto your wish about the extension 

Rahul Jatain
Advocate, Rohtak
2411 Answers
4 Consultations

4.9 on 5.0

Dear querist, 

Since the agreement period is for 4 months as mutually decided by you and the buyer, It means that the intention of the buyer and seller was to conclude the agreement within 4 months of its signing. Now, There are few things to be seen in your agreement. 

1. Is there a force majure clause in the agreement?

2. What has been mutually agreed between the parties to the contract?

 

Now, on a general viewpoint, the answer to your questions are:

1. No, you should not sell the property to anyone else but the buyer, unless he agrees to do so, the legal issue might arise later on as the buyer might file a suit for specific performance of the contract and compensation. 

 

2. Yes, If there is a force majure clause in the agreement, it means that in case a situation arise that the parties are in such a condition owing to the natural calamity or any other reason that they can perform the obligations under the agreement, then you should give the extension of reasonable time once the lockdown ends. 

You can contact me for consultation, in case you are in need of my assistance.

 

Regards, 

YUGANSHU SHARMA 

ADVOCATE 

Yuganshu Sharma
Advocate, New Delhi
342 Answers
1 Consultation

5.0 on 5.0

Hi,you can make another formal agreement for the extension of sale deed ..However,the sale deed can still be executed as all revenue offices are operational 

Hemant Chaudhary
Advocate, Gurgaon
4461 Answers
34 Consultations

4.9 on 5.0

All contractual schedule shall be deferred up-to a reasonable period of time due to covid 19 pandemic. 

Kallol Majumdar
Advocate, Kolkata
2527 Answers
4 Consultations

5.0 on 5.0

1. The transaction could not take place due to unprecedented lockdown in the entire country. Even though the time specified in the agreement of sale has elapsed, you can't sell the property to anyone without informing your present buyer.

2.  As you have rightly pointed out, give atleast 1 or 2 months' extended period of time for the agreement of sale to be valid, as this Covid19 is an act of God and the clause forcemajeure operates during the present lockdown period.

Shashidhar S. Sastry
Advocate, Bangalore
2631 Answers
161 Consultations

5.0 on 5.0

Buyer can file suit of specific performance and cancellation of sale on the ground of force majeure. Send legal notice first for cancellation of ATS. 

You are not bound to give extension and can cancel agreement forthwith. 

Yogendra Singh Rajawat
Advocate, Jaipur
18502 Answers
22 Consultations

4.6 on 5.0

Dear Sir/Madam,

You are suggested that due to COVID 19 pandemic, the force majeure conditions exists and you may extend the agreement for the period of lockdown. You are suggested to write to that buyer and if he is not responding, you may terminate the agreement as per law. 

Ganesh Singh
Advocate, NEW DELHI
4431 Answers
9 Consultations

4.5 on 5.0

1) In case if you want to sell the property to third party, first you need to get the Sale Agreement dated 4.01.2020 cancelled.

2) It is always better to offer extension of time by one months in writing.

If the buyer refuses, then cancel the agreement by addressing the same in writing under proper acknowledgement from him.

S Srinivasa Prasad
Advocate, Hyderabad
1901 Answers
7 Consultations

5.0 on 5.0

Legally you can sell the property to another buyer if the agreement contains a forfeiture clause and as per that the other party must have committed some default thereby giving you the right to forfeit the advance amount. If this condition is satisfied you can go ahead and sell the property to another buyer.

However the agreement to sell must be examined carefully first in order to assess the legal risks that you could be exposed to. Planning/strategising must be done only after thoroughly examining the Agreement to Sell.

Mohammed Mujeeb
Advocate, Hyderabad
15553 Answers
7 Consultations

4.5 on 5.0

1. Agreement will remain valid you cannot cancel the agreement due to forced Majeure clause which automatically extends the period of lockdown in the agreement period. 

2. Yes you should definitely give extension in agreement period. 

Mohit Kapoor
Advocate, Rohtak
7952 Answers
2 Consultations

5.0 on 5.0

1. The original time period will not be automatically extended due to COVID lock-down. You may sell the property to any other person if you so wish.

2. If the buyer and the seller mutually agree, time extension can be considered.

Swaminathan Neelakantan
Advocate, Coimbatore
640 Answers
6 Consultations

4.9 on 5.0

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