We have made a 11 months agreement (not registered) for selling 3 acre land with Mr X receiving advance of 50 Lakh, which expired 6 months back. He haven't been able to pay the balance amount .Mr X have made an investment of 20 lakh for land development. We have promised orally to return back his investments if a sale happens with a third party in future. Last week Mr X himself brought a party offering higher price provided we give back his investments and the difference between old and new offer price . My doubts;- 1.Is it legally safe to make a new agreement with the third party without cancelling the expired agreement.? 2.Can Mr X use the expired agreement in any way to create legal complications? 3.If the sale went well,What all steps have to be taken while returning Mr X ,s investments?
You should cancel old agreement with mutual consent refund the advance money received by you by cheque . Obtain receipt of refund of advance money
2) then enter into fresh agreement for sale with buyer
3) if old agreement is cancelled you won’t face legal complications
1. In order to avoid any futuristic legal disputes between any related parties, you may execute the new Sale Deed, with mutual consent JOINT signatures of the Seller and earlier Buyer and latest Buyer as "Consenting & Confirming Parties".
2. Before paying off the earlier buyer, also take an Indemnity Bond from the earlier buyer indemnifying you against any legal litigation /losses or claims or whatever ....
1. No, it is not safe to enter into a new agreement , without cancelling the agreement which is expired even.
2. Yes, Mr X can use the expired agreement , as the limitation period of an agreement is 3 years legally i.e. Mr X can file a case for specific performance or recovery of paid amount to you , within the period of 3 years.
3. You can enter into an agreement with Mr X , or take a declaration from him that he has already received entire amount , and nothing is due towards you , and further must mention that the agreement executed with him earlier , which is already expired has cancelled now , and having no value in the eye of law.
- This declaration should be prepared in the presence of two witnesses.
1. The sale agreement with the previous buyer is an unregistered deed, hence you can cancel it immediately by serving a legal notice to the buyer, after which you can enter into a fresh agreement for sale with the new prospective buyer.
2. You obtain his copy and along with your copy cancel both in his presence and in the presence of a witness.
3. You can obtain a stamped receipt acknowledging the receipt of the return of advance amount in the presence of a witness from his side.
1. No. Without cancellation of an existing agreement nj fresh agreement in respect of the same property can be done with a buyer.
2. Yes. X has on the basis of existing agreement can get injunction order from court of law.
3. Make X party in the new agreement and mention of his refund in the same agreement as well.
The agreement previously made should be cancelled and for this a new agreement should be made stating that tge previous agreement stands cancelled. Money should then be given back. All tgings must be registered. Engage a lawyer who will do all the things.
The 3rd party should be apprised of the situation and money be taken and sale deed registered.
Please get ascertain the market values of property from the office of sub-registrar of the property first and then take next steps.
Dear Sir,
It is better to get the agreement with X cancelled before entering into agreement with third party and Use Mr X as one of the witnesses. In that case Mr X will not be able to do anything as per the steps advised. If the sell goes well and everything goes well, then you may return the investments of Mr X along with some benefits as a good will gesture.
Agreement already expired and execute fresh tri partite agreement, in which X will admit cancellation of previous agreement and new fact and terms.
Take receipt of payment return. Make payment though cheque or NEFt.
1. First agreement was not registered so it was invalid.
2. No
3. Follow specified instructions
in my opinion, you should cancel the old agreement and obtain a written receipt and execute fresh registered agreement with buyer.
1. Yes a written registered agreement required
2. Yes for specific reliefs but not otherwise as itsof no use
3. It should be returned with covid treatment conditions
1. No you cannot execute fresh sales agreement without cancellation of previous agreement.
2. Yes he can create trouble even with expired agreement.
3. You should execute a triparty agreement between Previous buyer, new buyer and you in which you should mention that amount received from first buyer is refunded to him along with profits and he cannot claim anything after execution of this agreement and you will register the sales deed in favour of new buyer after receiving remaining amount.
No he cannot use it.
