Hi, I have a situation in which I am stuck in a land deal. It would be helpful if I get any advice on my below queries. On 28th Oct 2019, we had a verbal agreement with one buyer Mr. F, to sell my agricultural land. In the discussion the price for the land after long negotiation finalized at 20L. Mr. F said that he is currently having only 10L and to arrange remaining 10L he will need time till Dec 2020. On which we said we can allow maximum time till Mar 2020 i.e. 5 months for remaining 10L and once complete payment of 20L is received only then we will have transfer of land. There was no verbal or written clause in the agreement if he fails to pay remaining 10L (or complete 20L) before Mar 2020. Later we asked him to at least have stamp paper agreement in which all the agreed points can be written. He denied to add any deadline for the payment and currently there is no written agreement for this deal between us. As decided he had to pay first 10L immediately and remaining 10L on or before Mar 2020. But till Jan 2020 he only paid total 8.5L (which include 3L for token paid immediately in first week and 5.5L as part payment, paid on Jan 2020). Till today Aug 2020, he has not paid the remaining amount as per verbal agreement, he has missed the Mar 2020 deadline as well as the extended deadline of Jun 2020. Now he is telling lockdown and other reasons for failure of complete payment. Please advise on my below queries - 1. What legal action I can take to get my remaining amount i.e. 11.5L? 2. What happens to the token and part payment if he suddenly says he can not pay remaining amount and deal is cancelled? 3. Can I sell this land to some other party in between this current deal? If yes do I have to return all 8.5L to Mr. F or only the part payment and token can not be refunded? 4. Will there be any legal action against me if I cancel the deal and do not refund 8.5L to Mr. F? 5. Any suggestions to resolve this dead deal? Appreciate your advice, thanks in advance.
If deal is cancelled you have to refund advance received by you
2) you can issue legal notice to buyer to pay balance amount
3) return advance if you are selling land to third party
4) buyer would sue you to recover advance paid by him in case deal is cancelled
1. When someone is careless like you while selling land then problem like this is quite common.
2. In absence of ang written agreement both of you can twist the terms at your convenience making the deal therefore a free for all.
3. Anyway before it gets too late send him a legal notice stating the agreed terms and cancellation of the agreement if he fails to make remaining payments.
3. Now on expiry of the time mentioned therein you can refund his money and send a cancellation notice.
If there is oral agreement and its now a breach of agreement on time frame. So you are free to sell your land to o
other person and repay his amount.
You have to return his amount that is 8.5 lakhs rupees after the new sell transactions. Be loyal to yourself and with others as well.
Hello,
If there is no written agreement, you can sale it to other person but make sure to return the amount and give him a legal notice that the amount paid by him will be returned and if within a stipulated he don't buy the property you will sale it to other person
Sale not yet executed. You can refuse to sell the land or impose penalty/interest on later payment.
If he cancels the deal, you can forfeit the advance quoting orally it was agreed between parties.
You can sell the land but refund will be subject to order of court than as he will certainly approach for recovery of amount paid.
Maximum he can file recovery suit.
Send him legal notice to pay rest amount with interest with in 15 days, failure to which deal will stand cancel and forfeiture of advacen.
1. Legal notice and than specific performance suit.
2. Amount remains with you as per social norms. (Not legally)
3. If you sell it to someone else than the amount have to be returned.
4. Yes, he might file a money recovery suit.
5. Legal notice and than file a specific performance suit.
You can file a suit for specific performance but without deadline it would be difficult to establish the same. At the most he will cancel the deal.
The token and part payment is managed as per the terms in agreement decided mutually
You can sell it to others but the return of money depends on what is agreed between you both.
Yes you can't forfeit the entire amount without any written terms to the same
It's better to cancel it mutually
Written Agreement and receipt of payment has value before court of law. Verbal agreement has no value.
If you want the present deal to be dealt with possible and positive results then issue a legal notice doe the performance of the contract and wait for the reply.
No Criminal or Civil action until supportted by agreement in writing and due acknowledgment of INR 8.5 Lakha.
As per section 17 of Registration Act 1908 Sale Agreement, Sale deed and conveyance deed are required to be registered compulsively other wise the entire transaction is invalid and cannot be enforced under the law.
- As per Section 10 of the Indian Contract Act, 1872 , An oral agreement is as equally valid, as a written one , and the legality of an oral agreement, cannot be questioned.
1. You should send him a legal notice for termination of oral contract , and thereby ask him remaining amount within a period of 15 days from the receiving notice , and mention that if failed to pay then the amount dully paid by him would be forfeited.
2. Can be forfeited
2. Without terminating contract , you cannot sell to other party , hence terminate the agreement after sending a legal notice.
3. The said buyer can file a suit for recovery of the amount only , as there is no agreement for property.
4. As above.
1. You have not transferred the property to his name yet, you have just received an amount as advance, hence you cannot say that the balance amount belongs to you.
If you do not want to wait anymore, you can cancel the deal and return his advance amount.
2. You have to return the amount paid by him after deducting administrative costs, if any.
3. You can sell the property by cancelling the deal with F but you may have to return the entire amount received from him.
4. He would file a criminal complaint for cheating offence.
5. Sort it out amicably.
Dear Sir/Madam,
The best course of action would to serve a legal notice to the said buyer that he is required to arrange the money and get the sale deed done within some specific period say 01 month, failing which the sale agreement will be cancelled, money will be forfeited and you will be free to sell the property to someone else. However. you are suggested to reserve the amount of Rs 8.5 L for returning to him in case you are doing fresh deal and no interest etc. will be paid to him.
There is no legal sanctity of the verbal agreement in relation to the tranfer of the property. it is not enforceable by law.so do not worry about the things and do not force them to take back the token money.. you can alson issue a legal notice through an advocate to buyer to pay balance amount within 15 days, in case if he fail you can file specific of performance suit.
1. Verbal agreements are legally not enforceable by law so you should execute a fresh written agreement with buyer.
2. You can send a legal notice to buyer for payment of remaining consideration as per verbal agreement between you and buyer.
3. You need to return the money incase of cancellation of deal.
4. Yes you can sell the land to any other party and return 8.5 lakhs recieved from current buyer.
5. Yes he can take legal action if you refuse to return his money.
You may return the money and the deal stands cancelled. Verbal agreements have no value in courts unless money has been exchanged and there are witnesses. But here he has missed the deadline.
Return the money to him. Deduct some amount but return it and sell the land to someone else.
